Poll: Fed Cut

Discussion in 'Economics' started by Tony01, Nov 5, 2002.

  1. Tony01


    Looks like CSCO will decide whether this rally is sustainable. The market looks weak already considering how much good news in the last 24 hours(Rep. house,Pitt resigns,1/2 pt. cut).

    BTW, You can stop voting now!:p
    #31     Nov 6, 2002
  2. cheeks


    #32     Nov 6, 2002
  3. rs7


    Yup, but not my style of trading....I am a position builder.

    And Vladiator......yes, same kind of time frame. Very quick.

    Peace and all that stuff,
    #33     Nov 6, 2002
  4. yea...if your suffering a heart attack!
    #34     Nov 6, 2002
  5. Pound



    Why do you feel a 50bp rate cut is good news? Not that it matters and I don't trade off of this stuff anyways, but I am just interested in knowing why you feel this way. Thanks!

    #35     Nov 6, 2002
  6. ges


    I think it was a stupid move, BWTFDIK? Not much. Just seems like they shot their wad.

    #36     Nov 6, 2002
  7. Tony01


    Rate cuts theoretically cause economic stimulus. The market views that as a positive. If you believe .25 is all that was priced in, then .50 should be viewed as more of a stimulus that needs to be priced in. However if you believe it won't help or that it was priced in, then maybe you should sell into this rally.

    From a trading standpoint I view rate decisions as a catalyst. How the market acts after a decision can be an important indicator particularly if the behavior jives with your own T/A.
    #37     Nov 6, 2002
  8. CLEAR!
    #38     Nov 6, 2002
  9. tntneo

    tntneo Moderator

    precisely, it's not about the rate cut itself if you trade (whatever timeframe).
    it's about how the market reacts to it.
    don't predict, just look.
    it is a catalyst. and the way things evolve after this point is important (well for swings and mid-long term of course).

    but again, second guessing, predicting the logical consequence of the cut is a waste of time..
    if it was that simple (logical consequences to events) trading would be very easy. obviously it does not work that way. Still, you can't help read so many opinions everywhere about what will happen next.

    #39     Nov 6, 2002
  10. I was short from 13.50 trying to get 12 even, I just hung on through the whole thing and finally went long at 11.75 and then took another ride and hung on and covered at 16.25.

    It happened so fast I didn't have time to be scared. My brain was thinking in ticks and just couldn't make the conversion to handles, so it just flatlined and I came out looking...I think maybe an angel was actually trading for me.
    #40     Nov 6, 2002