Well that was an unhealthy reaction

Discussion in 'Trading' started by DeepFried, Apr 30, 2008.

  1. At the top of an overbought range and backing off +170 on the Dow to finish negative. A lot of people looking for a big selloff in crude and a massive dollar rally to go with a market rally. Doesn't look like it's going to happen barring some wackiness overnight.
  2. I thought it was a standard reaction to a FED pump and dump rate cut.

    The door is now open for shoes to drop.
  3. spidey


    Fed said they may be/are done cutting. Time now for the market to throw a hissy fit. New lows for the year could be next.
  4. einai


    Those making that bet treated us to a full dose of propaganda yesterday: commodities sell-off, massive downward $ momentum.

    Made it difficult to hold my position.


  5. Markets do well in the day after the rate cuts. Just look at old charts on SPX.

  6. Feds should NOT be cutting any rates. Enough is enough. Too much of money floating around good for another years til 2009!
  7. Hence the market reaction. If the Fed left rates unchanged and said they were done for this cycle I think we would have seen a different take. Instead, we got the usual "on the one hand, on the other hand" mealy-mouthed wimpiness that doesn't signal leadership and makes markets uneasy.

  8. lol their rate cut preceded the last hard sell-off.

    You're just hell bent on this aren't you?
  9. Markets always rally the next day after Fed rate cuts. Refer you to SPX charts.

    Do not go buying SPY puts that will blow up your under capitalized account.

  10. Why can't you wait till next day and see what happens. Nothing is sure, but I wont be shorting anything at this time. Great danger of a tidal wave taking your account to the deep sea..
    #10     Apr 30, 2008