I have been wondering since Friday morning, how all those asian and european traders felt about the announcement Friday morning. Had to suck watching their markets plummet then have GWB and the gang fly in to save the day for the big three. Surely there are lots of traders that closed big losing trades. And countless others that went short. Now they are all screwed.
Moronic thread. GM closed LOWER ON THE DAY. SPX and the Dow of which GM is a component were up about three quarters of a percent each. NDX which has NO AUTO COMPANIES was up over 2% and the car less Russell was up almost 4%. Hence revival of the auto bailout was NOT A MARKET MOVER. Folks in tune will tell you the Madoff story was 10x the worry overnight than the continuing saga of the Big Three.
Moronic response. Sure the futures didn't tank right AFTER the Senate failed to bail out the automakers 9 pm and sure enough the future didn't rally right AFTER Bush' announcement the next day.[sarcasm off] The OP has a point. The longs got whipsawed and I bet lots of shorts failed to cover at the overnight lows thinking that it would go lower....
I did not mean to imply we should care how they felt about the timing of bail out info or about how it effected their trades. I am just curious how they feel about it. The way people create conspiracies in their heads I bet there are some traders out there that think the US timed it perfectly to screw them.
Do you always smoke crack on Fridays?? What accounted for the spike at 09:05 E??? The PPT and the auto bailout of course! What the hell else could it have been that occurred at the same precise second the announcement was made?
Asia imploded o/n on news. ES had already been 25pts lower TWO HOURS BEFORE THE VOTE. YES the market broke again after the vote. BUT the market had recovered half those losses by the time the TARP announcement was made. Bottom line: GM CLOSED LOWER and the indices WITHOUT auto exposure FAR OUTPACED the industrials to the upside. If the market was bailout led one would expect GM to be up in % terms more than Google, eh?
ES rallied 17pts on the TARP announcement. It then gave 12 points back in the next 20 minutes. That means net-net the announcement had the effect of just several ES points. If the market had been led higher by the TARP then you could've bought GM or the DOW and sold ANY OTHER INDEX and made money. Are you suggesting that $RUT was up 4% on news that couldn't even close General Motors higher?
Are you being coy are are you truly this baffled? Have you not observed the market's reaction to such events this entire year? Bear Stearns Every rate cut decision The passage of the $700B bailout after weeks of moaning Obama's first press conference These are just the ones I can think of quickly. The market whipsaws on every bit of news. It is highly probable that GM would have been down 90% on Friday without the news. It is naive at best to suggest "good" news produces gains; in this case it simply tempered GM's loss.