Is rate drop a done deal for Tues?
uncle_vito
What do you think. I think an interest rate drop is priced into the stock
so when it actually happens there should be no change in the market or a
drop if the wording isn't just perfect.
Of course may be a 10 minute upward spike.
What is the opinion here in net-land.
Vito
Lawyerkill
I think some of this rate cut is already priced into the market, but
investors and traders are still waiting for the final shoe to drop. I
still have 10 SEPT135 calls on the DIA, I sold my 20 DIA SEPT134 calls
the other day.
I don't see a reason for a rate cut at this time. Can the FED surprise
me, sure, but even if there is a rate cut I don't see a half point,
maybe .25 and the market will drop with only that.
I'll hold my SEPT135 untill the FED speaks and maybe even look at some
SEPT133 PUTs on the DIA tomorrow and Tuesday morning to cover both
ways.
704set
"uncle_vito" <uncle_v...@yahoo.com> wrote in message
news:13er3cd...@corp.supernews.com...
This will be a classic buy the rumor and sell the news.
Scenario 1: The Fed cuts The market has a brief rally. Then it sells off
because the rate cut means the Fed feels the economy is a lot weaker than it
thought.
Scenario 2 : The Fed does not cut. The market sells off because everyone
is disappointed.
Either it will sell off.
704set
FrediFizzx
A rate drop is not a done deal, IMHO. Oil is high, dollar is low;
inflation is still a major concern. The Fed is between a rock and a
hard place so they probably won't do anything other than what they have
been doing.
The market is still somewhat whacky because of panic and fear, so trying
to figure out what might happen is a coin toss. ;-) I'm hopin' for a
big drop; still have buying cash. My guess is that the market will drop
no matter what since the most the Fed could possibly cut is .25. Is it
going to be a small or big drop is the question.
Fred
FrediFizzx
news:5l5j1iF...@mid.individual.net...
Am I putting real money on a drop? Heck no; I'm only buying if there is
a big drop and hope I buy at the bottom. ;-) Otherwise, I will just
hold the cash and try to do some swing trading when the market gets a
bit less volatile.
Fred