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Originally Posted by Sapperwhite
Thats right. But, is a pump or a rate cut doing the same thing? They both free up money no?
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Yes - my point was about timing. The action occurred this morning, not yesterday.
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Originally Posted by Sapperwhite
And yes, I would bet my ass that someone placed a little power lunch call to a buddy and let the cat out of the bag. If someone hadn't, yesterday would have kept slipping, and today would have been an even steeper uphill climb.
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Sooner or later we'd agree on something. Who knows - it could happen again.
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Originally Posted by Sapperwhite
A pump or a rate cut, either way the Fed stepped in, the investors didn't just look at each other and say "yo, what the hell are we doing here, let's buy financials". It was an intervention, I was just wrong about the type of intervention.
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And the timing.
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Originally Posted by Sapperwhite
Steve sez...."Probably for no better reason than it has fallen by such large amounts recently. Hysteria and herd instinct. Whole market reactions based on what investors don't know rather than what they do. The volatility is predictable. The directions are not. At least not in the short term."
So who's back tracking??? It's not ego, it's common sense.
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Not me - my comments still stand. My personal guess is that the majority of the movement yesterday was as a result of people betting on nothing more than the upswing in the same fashion that most of the recent downward movement has been based on people selling on the downswing. In both cases the actions were taken in the absence of any information of any real value bar the curve itself (another thing I hold no truck with is the ability to consistently predict base on the shape of the graph)
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Originally Posted by Sapperwhite
PS, keep an eye on currencies....
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I do - but not all. Which ones would you recommend and why?