Im no clown and I would say if you call your self a "Trader" that this is one of the best volatility times. Now, if your a partimer, Johny paych who trades his 401k or an "investor" this is not your market. The swings will eat you alive because most of you "clowns" go long and can't short. A trending market has always been a market favorable to both the "investor, partime trader" as well as "Traders who trade intra and swings for a living" However, this current volatitly is favorable to a "trader" who captures both sides of the markets, it is hard to trade, even for the best traders. So the only clowns out there right now are the ones trading "one side" only.
LOL people like you kill me...I trade momentum and I trade both sides. No problem. The method I normally use to trade is not suited to this ridiculous BS for the most part. I have not LOST any money. I am net profitable for the month (not by much, but I'm in the black, so I'm happy)...but it is frustrating for this bizarre slot machine type shit to keep happening. If I were Joe paycheck managing my 401K I wouldn't be on a board that had the word Trader in it..but that's just me. Auction Market Theory helps a little right now in the making money dept....but I have made far more money in the past few months than I have in this one. Does that make me a bad trader? lol "Oh gee some one who I don't know from Adam and who doesn't know me either is gonna make fun of me because I am not saying how glad I am for this volatility! I'm done for! Finished I say!" Only a clown trashes someone else's opinion of the market without knowing the whole story. More than one way to skin a cat. Not everyone has to jump on the bandwagon and sing the praises of an overly erratic market just to fit in. I have spoken with some DAMN good traders here and elsewhere privately and they seem to be having the same "problems" as me.
P.S. Where did you deduce I only trade one side? Not all traders consider massive volatility to be the best thing since sliced bread...sure it makes you money if you're right, but it loses you plenty if you're wrong. Hard to place stops. But hey if you're balling right now, more power to you. I am happy for you. I can only speak for me. By the way, I am glad you're catching all the tops and bottoms, that's awesome! For me though, I'll just keep my modest little boring trading method and grind it out like I have been doing. Best of luck. Keep it up. Glad someone out there can call all the tops and bottoms perfectly.
the bulls are hoping for at least .50, if they only see .25 or nothing the markets are going to fall again...they already moved .75 and to move .50 would be too much risk for this economy. How much liquidity do they want to push back into these markets is beyond me, too much liquidity is what caused this credit bubble to begin with, if they think by cutting rates and handing out rebates is going to fix the problem they should think twice. It is going to be one volatile week.
From the Wall Street Journal 1/25/08: "It is unclear how much Société Générale contributed to Monday's market drop, which began in Asia. Nonetheless, officials say they were motivated not so much by Monday's drop as the cumulative decline in stocks through January; ratings downgrades on bond insurers that could expose banks to further loan defaults; and the self-reinforcing deterioration in home and other asset prices, confidence and economic prospects. Fed officials said yesterday's news doesn't change their view that it is better to err on the side of cutting rates too much because it is harder to undo the damage of cutting too little." I still don't know what this nitwit Fed will do on Wednesday but, according to the anonymous Fed official quoted by the WSJ, they're likely to cut more.
Don't make any moral judgements (good/bad) on financial markets. By the way don't fight the Fed either.
He cut 75BP and the effect is dissipating already. My guess is he won't cut because 75BP is a lot for one cut and he needs to save ammo for the next 'shock' which will have a greater effect than missing Wall St's expectaton of a cut on the 30th. Of course I am making a prediction here not trading what I see so presumably that makes me a Mook.
It is not beyond the realms of fantsay that he actually may cut just before The Chimp gives his speech if the market is tanking.
With gold sharply up and the usd taking a beating this a.m.; and the markets is a sideways mode, for now, sounds like the market is expecting another cut.... However, if this persists and he cuts, he risks gold going up further, and the usd could do a minicrash. European bankers don't seem to think a cut is necessary. I agree he won't cut...might say "aggressive pre-emptive measures have been put in place" or some such jargon. Ofcourse, anything goes.