Market Talk / Dec. 30 - Jan. 5

[JOVARN]

Dont look for relief with the fed cuts, people are broke and even if interest rates drop they have no cash to spend. Have you seen the STEADY climb in the Fed Van Pool program. What may happen is that some may look at the cuts as a way to re-package their debt; only to find themselves obtaining more debt.its a cancer thats catching up to everyone. They say the average deby on credit cards is 9600 I think its mote like 25K. Layoffs continue, oil will continue to rise as a result of interest rate cuts. The middle class will get wacked by AMT changes. Only those who are quick with the mouse, will make money over the next 12 months by buying the dips, but the trend will be down.
Smith Barney called my wife and would like to make some recomendations regarding her 401K
cant wait to see if they try and push a Bond fund. Cash is king. I am going to buy a wood floor for the bedroom, 12 months same as cash.
Good Luck to all, see you at 1190

 

[Show-me]

You bet! A rate cut is not going to put enough money back in the hand of the common folks to improve their fears. Remember, CONSUMER DRIVEN ECONOMY!

Who does a rate cut help anyways? It won't help me and won't help the people that did NOT get sucked into subprime loans. It will help companies trying to do leveraged buyouts, but only if the bank likes the spreadsheet of the loan. Even if there are common folks that a rate cut will help they are smothered in credit card debit, high fuel and energy cost, high food cost, weak dollar, higher education cost, higher medical cost. You think they are going to invest that money? They might **** it away short term, but that ain't fix'n the economy.

What until the Credit Card Bubble pops then you will see a economic slow down.

 

[Corepuncher]

I totally agree a rate cut, even a large one, will not bring us out of this situation, but I bet the market rallys if they cut 50. Rally 2-3 days then stalls, then sells off hard again.

I would have expected buyers to have stepped in already sub 1415...maybe 1400 is the key level for a bounce? On the other hand, On Fast Money the other night Jeff suggested playing the S&P for a trade, with a tight stop at 1400 (sell once broken).

Pretty meager Economic calendar for next week. Nothing Monday or Wednesday. Looking ahead, the week of Jan 14th looks like it could be insane given the amount of data to digest:

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

Can't wait!!

 

[Bullitt]

Don't forget about the ethanol pipe dream. I'm not an economist but I'm sure the speculatory run up in corn has helped add fuel the inflation fire.

 

[The_Technician]

I totally agree a rate cut, even a large one, will not bring us out of this situation, but I bet the market rallys if they cut 50. Rally 2-3 days then stalls, then sells off hard again.

I would have expected buyers to have stepped in already sub 1415...maybe 1400 is the key level for a bounce? On the other hand, On Fast Money the other night Jeff suggested playing the S&P for a trade, with a tight stop at 1400 (sell once broken).

Pretty meager Economic calendar for next week. Nothing Monday or Wednesday. Looking ahead, the week of Jan 14th looks like it could be insane given the amount of data to digest:

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

Can't wait!!

I'm looking at the S&P around 1360 (CB's) before a rebound at this moment.

Carnac

 

[caymanbrac12]

The market has become very oversold based Friday's action. Also the TRIN closed way above the 3.0 level on Friday which indicates a lot of panic from investors. Thus it appears an oversold bounce is nearing and could develop by Monday or Tuesday.

The best thing that could happen on Monday would be for a gap down right at the open which would give us a more favorable entry price. However it's possible the market could gap up substantially at the open as well so if that happens there really isn't much we can do about it.


Greg​

 

[Spaf]

Thanks for the posts and views!
Will be closing this weekly thread and starting a new one
Have a good weekend and be careful out there!
​