|
PureBytes Links
Trading Reference Links
|
If I'm reading this email correctly I certainly hope you are
not a discretionary trader or for that matter a system trader
as you won't last long. You need to give up the complaints
go study a bit.
Think about it a little. Stocks are way off their highs why
would you be surprised at a strong rally let alone the economic
situation that would cause the fed to lower rates. Reality is
very important in trading. Get a grip.
Jimmy
-----Original Message-----
From: scheier [mailto:scheier@xxxxxxxxx]
Sent: Wednesday, January 03, 2001 1:24 PM
To: Mark Brown
Cc: Omega Users List
Subject: Re: the Fed
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@xxxxxxxxxxxxx
> Y = Offset + Amplitude * sin(Frequency * X)
|