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Will the Fed lead the market?
Old 02-20-2013, 04:10 PM   #1
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Will the Fed lead the market?

The first market drop in a while is prompting the question of whether or not the Fed will pull back on the current stimulus.
Wall Street slides as Fed minutes spark concern | Reuters

Not really brand new news, but is shaking the VIX. Up 20%

The blip has rattled the financial channels.
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Old 02-20-2013, 04:12 PM   #2
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Noise. Ignore it.
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Old 02-20-2013, 04:12 PM   #3
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Originally Posted by imoldernu View Post
The blip has rattled the financial channels.
A loud fart will do the same...
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Old 02-20-2013, 04:13 PM   #4
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Noise. Ignore it.
OK... done!
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Old 02-20-2013, 04:35 PM   #5
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A loud fart will do the same...
That particular noise comes "from" the financial channels...
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Old 02-20-2013, 05:25 PM   #6
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Originally Posted by imoldernu View Post
The first market drop in a while is prompting the question of whether or not the Fed will pull back on the current stimulus.
Wall Street slides as Fed minutes spark concern | Reuters

Not really brand new news, but is shaking the VIX. Up 20%

The blip has rattled the financial channels.
It isn't even the biggest down day year-to-date on the DOW, and the S&P500 is still well above 5 year highs!

Sorry, but with the DOW down less than 1%, and the S&P500 down 1.24%, it's not even anything to write home about. Have some 2.5% down days, and then we're talking!
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Old 02-20-2013, 05:48 PM   #7
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It isn't even the biggest down day year-to-date on the DOW, and the S&P500 is still well above 5 year highs!

Sorry, but with the DOW down less than 1%, and the S&P500 down 1.24%, it's not even anything to write home about. Have some 2.5% down days, and then we're talking!
+1 - and what happened to the volatility we were experiencing last year? It has been a nice, smooth ride up so far *fingers crossed*
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Old 02-21-2013, 07:09 PM   #8
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Well as the Fed pumps up the economy it has gone up. The question is - when the Fed stops pumping will the economy have legs enough to stand on its own or just collapse?
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Old 02-21-2013, 07:37 PM   #9
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I don't see a significant drop in my equity allocation to trigger a rebalance so I'll stay calm. Fortunately I'm really busy for the next couple weeks so no CNBC during the day for me.
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Old 02-21-2013, 07:39 PM   #10
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Well as the Fed pumps up the economy it has gone up. The question is - when the Fed stops pumping will the economy have legs enough to stand on its own or just collapse?
Short term - who knows? Long term the earnings of the companies will have much more impact.
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Old 02-21-2013, 09:01 PM   #11
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Somewhat of over reaction, as usual, just one fed member saying they might consider reducing the purchase amount based on future meeting results.
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Old 02-21-2013, 09:15 PM   #12
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No. the fed won't do anything this year. Obama and congress will take care of the mkt.
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Old 02-21-2013, 09:32 PM   #13
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These are the little buy opportunities I look forward to every month or so.
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Old 02-21-2013, 11:04 PM   #14
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These are the little buy opportunities I look forward to every month or so.
Me too!!
I'm waiting for an agreement on the sequestor, then purchase accordingly.
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Old 02-21-2013, 11:49 PM   #15
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Me too!!
I'm waiting for an agreement on the sequestor, then purchase accordingly.
I don't think there will be any agreement, I'd bet it will execute just as written.
The next crisis will be the need for another Continuing Resolution (or maybe a real budget--ha, ha!)
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Old 02-21-2013, 11:56 PM   #16
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I bought this neat software from one of our members Lily Byron
It not only predicts forex trades, it tells me what the markets will do based on historical data and fed announcements.
According to Lily's software, the market will be up approx 50 points today.
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Old 02-22-2013, 07:23 AM   #17
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I know some here dismiss CNBC, but I think they have some good interviews from time to time, and it's the only market news channel I get. Like anything else there is some good between all the filler material. This morning they have an interview with Jim Bullard ( ST Louis FED ) about what was actually said by the fed minutes. Basically nothing has changed.

Fed's Bullard: Fed Policy to Stay 'Easy' for 'Long Time'
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Old 02-22-2013, 07:34 AM   #18
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I know some here dismiss CNBC, but I think they have some good interviews from time to time, and it's the only market news channel I get. Like anything else there is some good between all the filler material. This morning they have an interview with Jim Bullard ( ST Louis FED ) about what was actually said by the fed minutes. Basically nothing has changed.

Fed's Bullard: Fed Policy to Stay 'Easy' for 'Long Time'
And, interestingly, the stock futures are up very strong this morning, and the European markets are strong.
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Old 02-22-2013, 08:44 AM   #19
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I thought the story here was going to be about bouncy houses and expected some news about inflatables.
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Old 02-22-2013, 08:46 AM   #20
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I don't think there will be any agreement, I'd bet it will execute just as written.
The next crisis will be the need for another Continuing Resolution (or maybe a real budget--ha, ha!)
I don't understand this, Sam, so maybe you are someone else can clarify for me. Why has there been so much noise over these impending cuts, when hardly a word was mentioned over the 2% payroll tax, before it was reinstated. Seems like the payroll tax increase would create more headwind for the economy than these cuts will.
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