Rate hike effect!?

Discussion in 'Trading' started by t10_trade, Feb 19, 2010.

  1. Noticed a bearish reaction in the futures after the 25 basis point hike. Markets have recovered nicely since.

    Looking for opinions on longer term effect, next 2-6 months, on the overall markets.

  2. Zero. No effect whatsoever. And so it shouldn't, it was a non-event.
  3. No clue.... but I expect to make money every day trading on both the long and short side of the market. Directional bias usually leads to loses. Last week I made money every day... 80% short 20% long. This week I'm up 3 of the 4 days trading 80% long, 20% short.

    Next week? No clue... I will observe, trade, cut losers fast, and trade in the predominate direction of the market.
  4. 1) It's bullish if borrowing is spurred for "productive" activity, not speculative activity. Interest rates can go higher because of aggressive borrowing. :cool:
    2) It's bearish if there's a perception of fear of default from creditors. Interest rates can go higher if the US dollar has to be "defended". :(
    3) Once the Fed does something, they can keep on doing it again and again and again. It remains to be seen if the Fed will "follow" the market or attempt to "lead" it. We'll see. :confused:
  5. S2007S


    Seemed to be very negative last night, now everything is trading sideways YET again, this week has been extremely boring, DOW up 14 points now.....

    Wonder whats going to happen in the next 30 mins....

  6. S2007S


    I really don't think anyone is going to get short until it moves up another 3-5%, I think this slow move up has people waiting for new highs for 2010 to get short once again or at least reduce their long positions.....

    Im still short the market with a few longs here and there, but mostly short overall, I sold 1/2 of a short ETF last week and another 1/4 of another short ETF 2 weeks ago, now Im waiting again to get back in on both at new highs on the markets.
  7. I was thinking the exact same thing when considering buying some puts to protect a long portfolio today.