Sorry, did I miss something? I didn't see a rally, certainly not a huge one. What I saw was a DOW that, despite a jubilant crowd couldn't even take out the 14000, and in the end rally didn't even reach the previous high spike. All this on very reluctant volume too. Either there were good reasons for a cut, and they haven't gone away, or there weren't good reasons for a cut, implying a very weak FED prolonging an artificial economy and letting the rot last longer. (I think the latter) BTW. you are still down 250 points since 2 weeks ago, about $1250 per YM contract.
It was weak overall as a reaction, and I'll be net short, but not by much, over the next few days, more than likely. But the general tone is positive. If your time horizon is more than just a few days, as mine is in some of my accounts, and as stock trad3r's is, then once we get the pullback on the realization that the Fed is done - they said so with crystal clarity in their statement - there's going to be a huge rally. It's been building since the market's upward momentum stalled a couple of years ago, since grinding higher against a massive wall of skepticism. Once the market gets its collective head wrapped around the idea that the Fed is done, it'll be a straight shot up, possibly to 2000 on the S&P. Resist at your peril.
Ride the rally but keep this in mind! http://www.ft.com/cms/893ac9c8-757e-11dc-b7cb-0000779fd2ac.html I have been bearish on the economy for a year, but bullish on the markets. Its called follow the political Bullshit until they can't bullshit anymore. Nothing like driving down the highway at 130 mph and blind as a bat. Its just a matter of time before the inevitable happens. At the current rate of Uncle Ben's blatent stupidity, when the shit hits the fan this man will have to dig a whole in the middle of the woods in the middle of nowhere. It amazes me that the media can put on a poker face for so long, but I am sure when that time comes they will claim they were decieved or just reporting what they were told. Its flat out astonishing how 100's of millions of people can be push overs to a few dozen people!
OK, i'll comment. I think the Fed may be selling assets (bonds) to offset the effect of their rate reductions on the money supply. Lowering the Fed funds and discount rates does not have to lead to inflation if it is offset by asset sales. Perhaps, in the present case, the main driver of inflation is not a too low Fed interest rate but rather too much fiscal irresponsibility with consequent borrowing and monetizing of the debt. Horrible inflation seems to be looming on the horizon, but i don't think that it is necessarily do to rate policy changes since Bernanke took charge. Rather it would seem to be mostly a result of bad judgment in Washington amd increased demand for commodities worldwide. And of course the Greenspan rate policy. There now. Is that serious enough for you?
Either you are too dumb to separate the facts from illusion; or you have a hidden agenda. By the way; these rating agencies still have NOT down graded these papers and banks who hold these junks as we are speaking now.