What do you think? Has the street bought the rumor and will sell the news? At the moment the market is flat, is it waiting for Tues?
I think if the Fed cut is 25 basis points we may see a sell off, with a 50 basis point anything goes, but I do not anticipate 50 points.
2007-12-07 05:34:54 · 6 answers · asked by mason pearson 5 in Business & Finance ➔ Investing
LOL I am no one and my opinion doesn't really matter, that is why I asked the question. I wanted other opinions. I day trade stocks (pattern trader) for a living.
It is obvious you did not understand the question.
2007-12-07 05:52:57 · update #1
I haven't been able to figure out the elaborate dance the market engages in starting at 1.15 pm on the day of the announcement and lasting for the next few days: up at 1.30, down at 2.00, up at 2.15...
All I know is the day after is when the market shows its true colors, and that rate cuts allow institutional traders to increase margin, which is generally bullish.
Another thing is that a big rate cut may signal the fed thinks the economy is in trouble. I think the most bullish scenario is a 25 bp cut AND the right language.
2007-12-07 15:41:32 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I think any rate cut will be met with positive results. Yesterday's stronger than expected employment numbers has fueled speculation that the Fed may not cut by the half percent everyone wants to see, and I believe this is being priced into the market 'as we speak'. Seeing that the market today is relatively unchanged, I see a quarter percent cut not being seen as bad news.
2007-12-07 05:42:37 · answer #2 · answered by curtisports2 7 · 0⤊ 0⤋
I think 25, but should go 50, and next time another 50.
We're in a negaitive GDP right now, Fed is covering it up.
Markets fall heavily from the 12th thru end of the year, down 8%....
2007-12-07 07:57:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
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2016-11-13 23:47:48 · answer #4 · answered by ? 4 · 0⤊ 0⤋
The Fed will cut rates and it will be 50bp. This is what has been priced into the market. So if you really don't think it will be this much you should short all your financials.
2007-12-08 18:28:02 · answer #5 · answered by MBA_IBANKER 1 · 0⤊ 0⤋
who are you and why does your opinion of whether you anticpate a 50 point cut matter?
2007-12-07 05:46:16 · answer #6 · answered by Anonymous · 0⤊ 3⤋