Translated in real english what the fed actually said was- ''Ok we give up, economy is screwed, end off, we accept it. So we are now just gna turn on the priniting press and just print unlimited peices of paper saying the word ''1dollar'' on them, and so this will create an artificial economy that looks good since we will control it''. Thats why everyone dumpepd all their dollar shorts in seconds, since the dollar is now worth nothing since theres gna be hyper inflation, why gold rocketed, why oil even soared up suddenly, why dow jolted so fast, since the fed will now be god and so can make the economy look however they want it too low, and have the value of companies as high as they want. (Will all be artificial due to the hyper inflation aspects, but no-one cares about that) How are all the day traders gna play this tomorrow and next week though?? Since swing trades will be buying gold, selling dollar. But are the day traders out there gn be bias to the upside also now??
Agree. I truly believe they simply said "ok, let's do inflation. at least the market will go up and people will start buying houses again."
the reason i ask what day traders will do tomorrow and over next week is because we got huge moves in seconds for dollar, gold, treasuries, dow... ect So if you were 'already' in a long trade at the timme you did great and made lots of cash. However now when we look at the charts and see these huge spikes, its totally against my trading style to buy at the top of them. SInce i trade reversals, dont buy after huge spikes or sell after big drops, and just pray for more. But at the same time im not some kinda mug whos gna see everyone else using dollar notes for toilet paper and going out lurking round rubbish dumps stealing scap gold pieces, and so decides that its a good time to start selling gold and buying the dollar! So im very torn on how to trade this now.
Problem is the federal debt/deficit are so huge that even small upticks in interest rates - which the Fed clearly has limited ability to control - will cause massive problems. And interest rates move far faster than the Fed can pump out fresh bills. I don't see how they can stay ahead of the curve on this.
you can mate, you just gta print enough! lol its now sorta like a race between the fed and traders as to who can print faster than the other can buy..
Racial commentary aside, how do you explain the dollar weakening so greatly and the massive move in gold if it is not about printing money? Or perhaps your argument is that it is not printing money that will lead to inflation?
It's not that they're not printing money - they are. It's that in the short run the printing is actually going to exacerbate the deflationary pressures.