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I do not agree with Mark that often but this time I
agree that the market already told you so.
If you trade index using market breadth you would
decidedly turn bullish since the opening today.
You may got shake out but not bearish at all if your
time frame is longer, say 30 min +
I am not as generous as Mark though on giving out
trading models yet :)
Somebody did something speical in OEX options right
before the announcement too :)
--- scheier <scheier@erols.com> wrote:
> That's nonsense. And surely you can't suggest that
> the
> clearly bullish non confirmation's of the Nasdaq's
> relative
> strength today to that of the other two indices is
> enough to
> predict today's action by the Fed. And as for that
> subject,
> there are as many current sentiment indicators
> suggesting
> far more bullishness that warrants a low to tell the
> discriminating
> position player to stay the course and be short,
> even into this
> rate hike --especially that of more call buying than
> put buying
> over the last few days. In any case, that's not how
> day trading
> works, nor does it reflect the necessity of market
> makers and
> specialists, even as they see a turn, to play their
> role and take
> the opposite positions during the day just to keep
> order flow
> going smoothly. That's the point here, not
> whether the arrogance
> of some individual trader on the Omega group likes
> to draw
> attention to his predictive ability as you seem to
> imply.
>
> The point here is not what the Fed can do, but the
> respect
> it shows market participants, especially
> professionals. Their
> action, much like your comments, smacks of arrogance
> and
> false superiority. The market players, whether
> they are
> corporate investors, pension managers, floor
> specialists or
> merely small time speculators deserve more respect
> than is
> show by the Fed whether it is cutting rates or
> lowering them
> in such surprise moves. It reflects the
> attitude--often unsuccessful--
> that the G7 attempts to take over international
> markets when
> it seeks to intercede free market forces with its
> central bank
> buying power and force the relationship between two
> countries
> to a place it wishes it were, instead of where the
> market says
> it might rightfully be. Let the Fed do it's
> business with respect
> and humility for its place in the greater scheme of
> things: as a
> servant to the free market, not a controller of it.
>
> Scheier
>
>
> Mark Brown wrote:
>
> > Hello scheier,
> >
> > what you don't understand is that the market told
> you what would
> > happen BEFORE IT HAPPENED you were just not
> listening..
> >
> > s> I'm very lucky to be able to say I wasn't short
> the emini
> > s> nasdaq when this Fed announcement came out, but
> that was
> > s> by pure luck, as I was short twice on the way
> down for
> > s> moderate profits in what I thought was a normal
> day. In my
> > s> opinion, there is no excuse for the Fed to
> treat the market
> > s> and its participants in different manner for
> potentially bullish
> > s> news as it does for bearish. The right way for
> the Fed to behave
> > s> for such dramatic reversals of policy is giving
> small hints. This
> > s> intentional surprise treats such participants
> like market makers,
> > s> floor speculators, and specialists--who by
> nature must take short
> > s> positions as part of their daily role-- as if
> they were second class.
> >
> > s> I have previously held Mr. Greenspan in fairly
> high regard, but
> > s> must reconsider my opinion. This is an
> example of the Fed
> > s> playing god. That's not its role. It's role
> is to tweak. It's manner
> > s> should be humble. In this action, it places
> itself above the private
> > s> sector as if the corporate world of equity
> ownership were subservient
> > s> to the Fed's control. This is the ultimate
> disrespect. Some have
> > s> said they thought Mr. Greenspan should have
> gone some months ago
> > s> because of his lagging actions to leading
> indicators of a lagging
> > s> economy. I say he was doing exactly what he
> should have been
> > s> doing at that time. Now I find myself on the
> opposite side of
> > s> their opinions again. As they love him for his
> actions today, I
> > s> despise him for the thoughtless and even
> arrogant way in which
> > s> he has superseded his role.
> >
> > s> Scheier
> >
> > --
> > Best regards,
> > Mark Brown mailto:markbrown@markbrown.com
> > Y = Offset + Amplitude * sin(Frequency * X)
>
=====
Lawrence Chan http://www.tickquest.com
Innovative Analytical Software for Trading Professionals
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