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here is how i played it out today.
-i am sitting at my desk and my system has
some short and some longs on about 1 to 3 ratio.
-i gazed at my system and corner of my eyes
caught my quote screen light up like a
Christmas tree in a 5 seconds, that's 10 seconds.
- i look at the charts and quotes and see things
popping left and right a quarter here and there,
sp futures popping 5,10,15,30, that's another 10 seconds.
- i yell out "something is up" and immediately
pull up the wire, that's another 10 seconds.
- the wire says fed cuts rates 50 basis points, that's 5 seconds.
- i yell out fed cuts rates, buy. people yell out, what is up,
what is going on? ah, too late...
- i start pulling the trigger on whatever i have on my screen,
arca goes down, soes and snet go slow, sp,nd, dj, us in fast market, naz is
slow on
executions, bid and offers are crossed, total confusion
all pits in fast market, options go fast market...
- i pay up on everything. fills are tough to get. things start
popping heavily, market makers come in, that's about 1-3 min.
- volume picks up, my system enters longs and reverses from
shorts to longs. shorts are losers and longs are huge
winners.
- when the initial pop is over half hour later, the system
gets out close at the top and buys the pullback and then
exits it at the top again. all in all profitable like hell.
- i yell out that greenspan should be fired.
- my trading buddies that were short leave the office
in disgust.
here is the reason why greenspan did it:
- it WAS expected but to be done on Friday
after employment data.
- today overseas markets tanked good.
- yesterday we tanked and today most were short the
market, market was heading south for good.
- we had a wave of downgrade yet again, double and
tripple warnings.
- all major CEOs came out to complain to Bush that
greenspan is overdoing things, so he was worried he'd
lose his job...
- yesterdays NAPM data should Q4 GDP at .5%
- saudis are cutting oil supply, we are in energy crisis!
- the economy was getting overdone.
- euro went high against the buck...
- overseas sentiment was "dump everything US economy
is going into recession ".
- talk on the streets "it's the end of the world" :-).
greenspan stepped in to save the day and the rest of us,
yet again.
in my opinion this guy should be let go:
- never ahead of the curve always behind.
- have not prevented any single crash from the
moment his was the fed chairman, always post fact.
- was always forced to step in and not enforcing
others to step out...
- it always has to be overdone on both sides.
- all in secrecy, never in public.
- always those little hints, never a straight up approach.
- living in the back pocket of wall street moguls,
himself a "wall street man".
- responsible for creation of the biggest speculative
bubble in US history and not being able and not willing
to stop it in time.
- responsible for trillions of losses in pension funds
and demolishing the hard earned savings of millions
of americans. ( called wealth redistribution )
- creating unnecessary market fluctuation and high
volatility ( playing into the insider hands )
- almost wrecked this economy and who knows
what will happen next, might be too late, let's hope
it's ok.
don't get me wrong, i like the guy but he is for
professionals and not for amateurs.
and we should not be praising the bastard either.
one man should not control the global economy...
have to find a better guy if we want stuff like that to
never repeat. don't allow it to grow fat so you
don't have to trim it.
so now what? let's inflate a new bubble???
some equities popped 20-50% in 3 hours.
rational or irrational???
i am talking out of my ass... probably shouldn't.
bilo.
ps. i congratulate every one who survived Y2K market.
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