a parabolic move (up or down) in the markets virtually always has a
snap back.
we are currently in a confirmed long term down trend. I
expect the trend will remain down until the fed starts QE3 as
liquidity is going to be sucked out of the markets (humongous bank
and broker) by UST auctions. Next fiscal quarter
they are going to float $660B! can you here the
sucking?
I had the feeling today that the market was really rallying at
the end of the day in spite of what the Fed did - there was no QE3
announcement, the market sold off, but ultimately 1100 on the S+P
held and the market reversed hard back up. Another test of
1100 would be pretty scarry, hoping we don't see that soon.
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FED Day
Posted by gas6733 on 9th of Aug 2011 at 07:51 pm
Seen many a Fed day that were up huge after the announcement and reverse entirely the next day. Hope this isn't one of those times
luquidity
Posted by rreich on 9th of Aug 2011 at 11:29 pm
a parabolic move (up or down) in the markets virtually always has a snap back.
we are currently in a confirmed long term down trend. I expect the trend will remain down until the fed starts QE3 as liquidity is going to be sucked out of the markets (humongous bank and broker) by UST auctions. Next fiscal quarter they are going to float $660B! can you here the sucking?
I had the feeling today
Posted by ducksoup on 9th of Aug 2011 at 11:26 pm
I had the feeling today that the market was really rallying at the end of the day in spite of what the Fed did - there was no QE3 announcement, the market sold off, but ultimately 1100 on the S+P held and the market reversed hard back up. Another test of 1100 would be pretty scarry, hoping we don't see that soon.