How can it be soaring. What's the news? News of AIG being saved at 2:00am in the morning? Forget 10%, we need a 30% down day to purge the system of all this nonsense. And how the hell could the dollar be soaring? Is it that the destruction of dollars is happening faster than can be printed. This economy is freaking invincible. Kin Out -- One very frustrated trader.
Erroneous Assumption, along with obsessive compulsive overtrading, is the number one enemy to any trader. I recommend you step back and not think so hard, because some of your thought processes may be skewed by assumption the past will repeat, and the same catalysts that held true in the past hold true today. Today's post LEH market is a very different one than one we've had in near term history... Lot to re-learn. Many old axioms will stop working here.
future goes up because some believe there is a 66% chance the fed will cut 0.25% today, and some believe they'll cut 0.5% But that's what got us in this mess in the first place, i.e., greenspan cut the rate too low and for too long. Since this recession will be long and deep (as per what Warren Buffet said), I wouldn't leave the rate low or long if I were the fed