Was it just coincidence in August that the market got to the 1380 level for a retest and "successfully retested" those levels with the Fed coming in supposedly randomly, right? ON an expiration Friday right before index options expired and came out with a 50 bp discount rate cut? That was pure coincidence right? right?
Futures start heading up in anticipation of a "surprise" rate cut and now it looks like its not going to happen this morning, the futures sell off. All stock traders are a bunch of rate cut addicts!
Like clockwork as soon as it hits a critical chart point: Fed's Plosser Says a `Weaker' Outlook May Need More Rate Cuts By Scott Lanman and Craig Torres Jan. 8 (Bloomberg) -- Federal Reserve Bank of Philadelphia President Charles Plosser said further interest-rate cuts may be needed should the outlook for U.S. economic growth become ``substantially weaker'' than already projected. ``A substantially weaker outlook than expected, particularly if that weakness is projected to be more prolonged than anticipated, may require further adjustments to policy,'' Plosser said in a speech in Gladwyne, Pennsylvania.
Because the response to the stimulus is getting weaker with each application. Rate cuts won't hold the market up, they just make shorting difficult and push the payoff further out. 5 months and counting so far. What you will be left with is a collapsed dollar, acollapsed stock market and no solution to housing. It is all for nothing, or more accurately, for I Banks balance sheets and portfolios. Institutions need time to unwind onto the propaganda/CNBC believers.
The Fed: Philly Fed's Plosser says economy will recover without rate cuts Plosser hints he'd vote against further rate cuts
Looks like Bloomberg distoted it then. They are not above doing that - especially with headlines and entries.
The Fed officials all say one thing and do another. They change their minds based on single data points and have a tendency to hit the panic button (anyone remember Easy Al?). Bernanke has hit the panic button before, don't think he won't wear it out by the time he gets kicked out of his chairman seat.