ShockandAwe,thatwasthestreet'sresponsetotheFED'saction.Itisindeedasurprisetomanypeople--peopleincnbcforsure.
IwaslisteningintentlytomyXMradiominutesbeforetheannocement,CNBChadRickSantollion,whilehewasspeaking,Iheardfrombackgroup"Fedfund50bptanddiscountrate50bps,Iwastakenbackandimmediatelyenteredintomyorderforonefinancialstockandanotherordertoamomentumplayer...Theremustbealotoforderstocomeinand...[
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IamnotsurethatIshouldbehappythatImadethedecisiontobeoffthemarkettoday.Ontheonehand,Iwasoneofthemajority,obviously,alotsofpeoplemakethesamedesicion,thevolumewasextremelylow.Ontheotherhand,Ireallydonotwanttobeconventionalintermsoftrading:)andIwastooconventionaltoday.
Youcanbeguarantedtomorrow'svolumewillbewayhighandalmostallofthosevolumewillcomeafter1:30,Idefinitelywillbewatchingandparticipating...[
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Therearetoomanyreasonsthemarketshouldbedowntoday:
TI'srevenueestimatedampenthehopealittlebitthattechisgoingtoleadthemarketoutofthewoods.
OilpricespikedhigherafterOPEC'sactionorlackoftheaction.
DallorfailagainstEuro.
andmostimportantly,wehadaupdayyesterday....
Butitdidnotfailasmuchasitnormallydoes,so,isitagoodday?
Hardly,asnotedbefore,Thisisarangeboundmarketforthetimebeing,i...[
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Bondarebiddedup(tltisintheoverboughtsituation),soarethegoldandbigcapstocks.whatdoesittellyou?
Itbasicallysaysthatthepeopleareseekingsafetyandthemarketarenotsureaboutthefuture(atleastnearterm).Volumearelow,wewillprobablybeinthisrangeforquitesometimeuntilsomenews(goodorbad)tobringsomeclaritytothedirectionofthemarket.
Maybewecansaythemarketisinanequilibrium,atightbalancethatanylittlenewscould...[
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Itdoesnotmatterhowsmallthechanceis,therareeventwillalwayshappenintheWallStreet.TheLongTermInvestment,withitscrewfilledwithPh.DsandNobleprizewinners,estimatedthatcalmitythateventuallybroughtitdowncanonlyoccuronceinamillionyears,butithappenedandLTMbecometheignomityinthecasestudiesthroughoutbusinessschools.
Well,oneofthoseunexpectedhappenedtoday.Itislongknownthatthejobreportwillbeweak,beforethe7:...[
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Considertodayavacationday,because,tomorrowwillbeadaywithfirework.
Itishardtohaveafulltimejobandtrade,especially,wheninadayliketoday,youareforcedtositinthemeetingallday.Youcantradehidingbehindthewallsofthecubicle,buthowcanyoutradewhenyouhavetointeractwithothers.andunfortunately,Iwillhavemeetingtomorrowwhenmarketopens,hopefully,Icanfindagoodseat.
Thequietdayprovidesapreviewoftomorrow,itislik...[
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Althoughtheactionofmarkettodayisratherdisconcerting,itisnottotallyunexpected.Withnicerecoverylastcoupleofweeks,marketisfacingitsresistance,forDOW/SPX,theresistanceisits50MA,forNSADAQ,itsupperbound.IfwebelievethatFEDisgoingtobaseitsdecisiononeconomydata,weareinforthedayliketodayforthenextfewdays,because,wewillbeinundatedwiththeeconomicreports.Therearedataboundtobedisappoointing,othersmayofferglimbs...[
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Ifyouareafewluckyonesandhaveastockridinghigh,youmightwanttotakeyourprofit,becauseitseemslikethatiseveryoneelseisdoingit.Also,thosestocksinthedumplatelyshowedsomelifetoday.So,thisiswhattheycalledre-pricetherisk,itiswouldbemoreaccuratelyifitiscalledreposition.
So,onceagain,peoplerealizedthatthethingsgetoutofthewhack,somestocksgettoohighandsomestocksgettoobeatenup.so,therearetheseprofittakingandb...[
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Afterlastweek'sdramaticreverse,itisnotsurprisingtoseethemarkettogivesome(small)profitback.Itisactuallyveryencouragingtoseesuchmovementgievnthecircustance.Volumewaslow,itis,rightlypointedoutbymanypostshere,duetothelabordayweekend,however,itisperhapsimplyingthegun-shyofbears,atleastfortheweek.
Duringtheweekend,therearealotofcautioustalks,inthisboardaswellasinmanyfinancialpublications,Ihavetoadmi...[
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Thedayplayedoutlikeaclock.
7:30a.m.ThefirstbatchofgoodnewscomingasdurablegoodsordersarebetterthanWallStreetexpected.Thepre-marketbouncedfromlowtobepositive,howeverreluctantly.
9:00a.m.anothergoodnewsofnewhomestartingisbetterthanexpectedaswell.ifyouhaveastreamingquote,youwillseethethescreenturnsintogreenquickly,buttherearestilllingeringdoubtsorthelastattempbytheShortsellertoresisttheob...[
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