fed does not need to buy --- they don't have to right now. the institutions are very very vested "long" equities right now and they have all the reason in the world to fire off buy program after buy program to hold everything until they have rotated into a more defensive posture. the institutions are full of liquidity and new money comes their way every month {funds under management and profits from trading their own monies} -- they have tons of liquidity on the sidelines if needed. this liquidity push will not be over until they are fully rotated defensive and there are hard figures showing earnings slowing down. the institutions are already getting defensive in their equities positions so they must feel we are at a top going forward -- they will probably use the "fed is done ---- buy! buy! buy!" push to sell into the last bit of strength. the volatility will probably greatly increase in September because if they feel that this market is starting to get away from their held positions ---- watch out, you will see some real hard selling then. "sell programs" will be firing off one after the other and just the opposite of what we see now. we should have some great trading in September and October as the daily ranges will probably expand even more, and there should continue to be strong trends with very solid follow through --- just what a trader wants!
PPT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! That would explain nearly everything if true, would it not?
rofl just a note, "program" trading is usually in reference to index arbs. not to just blind buying (or selling) of stock
well he said that when he met greenspan they both agreed it was a temporary thing. Thats when the market started to tank again.
lol do you mean throwing out some conspiracies theories on the fed Well all I care about a broker is if he did some good fills and never slacked off and just took whatever.
Considering how easily the govt spends 'our' money, this may be a very CHEAP way , in thier view, of maintaining stability of the financial system, and frustrating the end of the world types at the same time. Ponzi was a juggler.