So..will the big institutional players run this market down, looking like a 1385 SPX run to force the Fed's hand and put pressure on for a .50 cut? If you were one of the big time "globalist" players this January, how would you use your institutional holdings to manipulate the market as usual? Would you run prices down to 2007 wholesale levels, force the Fed's hand and then buy like crazy around 1385? :eek: January will be volatile imo..but feel free to chime in..
I don't know about specific levels, but I'm pretty sure they're going to smoke it in the chest at some point in the first five trading days. But after that, it'll be off to the races. The idea is to make ye average individual investor get into a fetal position, weeping uncontrollably, and then buy everything up before they can see clearly again. Knowing that, the idea will be to hold off until after the year starts, wait for the dropoff, and buy into it, keeping in mind that it's an election year, so fiscal policy will be stimulative. Fed policy already is, although it may become more so. This is the year we get to find out just how Republican Bernanke really is.