For those that are thinking the Fed will pull us out of this
"correction", I say "what correction?". The $NDX corrected
for 10 trading days. Yes, big price correction, but in the
realm of time that is needed to properly digest the gains of the
last 2.5 years, 10 days is not an adequate time for correction.
So for me, I just can't see this "Shock and Awe" having the
$NDX rally back over their old highs (as they surely would have
to), after only a 10 day correction in a 2.5 year mega bull run.
And where would this put AAPL?
The best way for Fed to have a positive stock market reaction is
to devalue the USD. Whatever news Fed deliver, the first reaction
may be a initial down reaction in both stocks and USD, but looking
at the reactions on the monthly job reports, the dropping USD may
give the stock market a boost at the end of the day. Just a
thought.
It seems that most people (bulls and bears) are counting on this
spike by Bernanke's announcement... what if the spike came, but in
the wrong direction? I would classify that as catching the
most people with their pants down.
I am thinking the same way, the market has been rallying based
on the hope of the fed. Can the fed shock and awe, maybe, but then
that's another bullet gone out of their rapidly decreasing arsenal.
With the fed out of the way, what's the next hope for the bulls
with Greece not resolved? Europe then becomes front and center with
not much to look forward too. My 2 cents :)
thoughts?
Posted by marketguy on 21st of Sep 2011 at 09:03 am
how does the market not get "crushed" by EOD?
just having a hard time seeing a "buy" the news event....
A real correction?
Posted by kalinm on 21st of Sep 2011 at 11:52 am
For those that are thinking the Fed will pull us out of this "correction", I say "what correction?". The $NDX corrected for 10 trading days. Yes, big price correction, but in the realm of time that is needed to properly digest the gains of the last 2.5 years, 10 days is not an adequate time for correction. So for me, I just can't see this "Shock and Awe" having the $NDX rally back over their old highs (as they surely would have to), after only a 10 day correction in a 2.5 year mega bull run. And where would this put AAPL?
Fed can devalue the USD
Posted by lebow on 21st of Sep 2011 at 11:36 am
The best way for Fed to have a positive stock market reaction is to devalue the USD. Whatever news Fed deliver, the first reaction may be a initial down reaction in both stocks and USD, but looking at the reactions on the monthly job reports, the dropping USD may give the stock market a boost at the end of the day. Just a thought.
praying for some shock and
Posted by marketguy on 21st of Sep 2011 at 11:48 am
praying for some shock and awe by the Fed....would love it to see a 50-70 pt spike "up" (wouldn't that be something
)....
Aren't many here short the
Posted by steve88 on 21st of Sep 2011 at 12:12 pm
Aren't many here short the S&P ?
It seems that most people
Posted by kalinm on 21st of Sep 2011 at 11:58 am
It seems that most people (bulls and bears) are counting on this spike by Bernanke's announcement... what if the spike came, but in the wrong direction? I would classify that as catching the most people with their pants down.
I am thinking the same
Posted by fibo on 21st of Sep 2011 at 09:44 am
I am thinking the same way, the market has been rallying based on the hope of the fed. Can the fed shock and awe, maybe, but then that's another bullet gone out of their rapidly decreasing arsenal. With the fed out of the way, what's the next hope for the bulls with Greece not resolved? Europe then becomes front and center with not much to look forward too. My 2 cents :)
China will be front and center soon....
Posted by kalinm on 21st of Sep 2011 at 09:52 am
Hang Sang closing under 19,000 last night. A down day in Nasdaq dream world might translate into a massive move down there.