Everything is getting killed

[goadam1]

everything down together. Has a mini-round of de-leveraging begun.

[cobben]

Re: Everything is getting killed

Perhaps Volcker has scared the markets with the threat of being forced to have a sensible monetary policy and reduced possibilities for corruption? :eek:

Nah . . . $USD short squeeze plain & simple , should peter out tomorrow or over the weekend.

[Anon21456]

Re: Everything is getting killed

Do you mean that the $USD is going to continue to go down ? :confused:

[Jim Nickerson]

Re: Everything is getting killed

To my reckoning nothing is "short and simple."

Here is another explanation that was posted some days back.

"Traders and investors must contemplate what course of action the Fed will announce and enact after next week’s FOMC if ‘the recession is probably over’.

"If QE, which is due to expire, is renewed, stocks should rally but commodities, gold and inflation plays should rally far more. The dollar should tank. China should go apoplectic. Benito will look foolish for saying “the recession is likely over”. Bonds might rally initially but then look out below.

"If QE is not renewed, stocks and commodities should tank; the dollar should soar and bonds after initially declining should rally.China
. http://www.ritholtz.com/blog/2009/09/the-king-report-a-tale-of-two-cities-wall-street-vs-main-street-the-stock-market-vs-the-real-economy/

So one must ask and answer what was the markets' interpretation of the the FOMC stance on QE?

[goadam1]

Re: Everything is getting killed

To my reckoning nothing is "short and simple."

Here is another explanation that was posted some days back.

"Traders and investors must contemplate what course of action the Fed will announce and enact after next week’s FOMC if ‘the recession is probably over’.

"If QE, which is due to expire, is renewed, stocks should rally but commodities, gold and inflation plays should rally far more. The dollar should tank. ffice:smarttags" should go apoplectic. Benito will look foolish for saying “the recession is likely over”. Bonds might rally initially but then look out below.

"If QE is not renewed, stocks and commodities should tank; the dollar should soar and bonds after initially declining should rally.China will be appeased. Benito will have validated his rhetoric with action.
. http://www.ritholtz.com/blog/2009/09/the-king-report-a-tale-of-two-cities-wall-street-vs-main-street-the-stock-market-vs-the-real-economy/

So one must ask and answer what was the markets' interpretation of the the FOMC stance on QE?

Earnings? Economy? Production? ROE? ROI? LOL!

[we_are_toast]

Re: Everything is getting killed

How nice! Gold is on sale today. Guess it's time to start stocking up for winter.

[cobben]

Re: Everything is getting killed

"So one must ask and answer what was the markets' interpretation of the the FOMC stance on QE?"

I believe rather one must ask what is the markets' interpretation of what the actual actions taken by the Fed et al. will be, ignoring the jawboning.

So far the $USD index looks to me to be in another typical short squeeze, whipsawing before continuing lower, however if this gets legs it might be time to rethink.

[Kadriana]

Re: Everything is getting killed

All I know is CNBC keeps on talking about DOW 10,000 and one person was even wearing a hat from the first time the DOW crossed 10k.

[Jim Nickerson]

Re: Everything is getting killed

"So one must ask and answer what was the markets' interpretation of the the FOMC stance on QE?"

I believe rather one must ask what is the markets' interpretation of what the actual actions taken by the Fed et al. will be, ignoring the jawboning.

So far the $USD index looks to me to be in another typical short squeeze, whipsawing before continuing lower, however if this gets legs it might be time to rethink.

King, the guy I quoted above didn't put an exact time line on what he said would be the reactions to the FED sticking with the previous comments of ending QE, but at the moment what he said is playing out, but a moment is only a moment.

[Raz]

Re: Everything is getting killed

Do you mean that the $USD is going to continue to go down ? :confused:

In the short-term it is likely to go up. At the present time too many bets are placed on the Short side, making the technical posture of the market lop-sided - as when everyone in the lifeboat moves to one side - the boat capsizes.

But in the long-term - two to five years - it will almost certainly break below 60 on the US Dollar Index.

Think of it this way: since we no longer have contract money (the Dollar is no longer convertible into gold or silver to ANY degree whatsoever) these Fiat Dollars are a common share of USA, Inc.

Now take a good look at Nancy Pelosi, Harry Reid, "Banana Ben" Bernanke, Timmy Geitner, Larry Summers and company: if they were the management of XYZ, Inc. together with the same balance sheet that Bush and Paulson bequeathed to them, would you buy the common stock of that company? :eek:

[Jim Nickerson]

Re: Everything is getting killed

In the short-term it is likely to go up. At the present time too many bets are placed on the Short side, making the technical posture of the market lop-sided - as when everyone in the lifeboat moves to one side - the boat capsizes.

But in the long-term - two to five years - it will almost certainly break below 60 on the US Dollar Index.

Think of it this way: since we no longer have contract money (the Dollar is no longer convertible into gold or silver to ANY degree whatsoever) these Fiat Dollars are a common share of USA, Inc.

Now take a good look at Nancy Pelosi, Harry Reid, "Banana Ben" Bernanke, Timmy Geitner, Larry Summers and company: if they were the management of XYZ, Inc. together with the same balance sheet that Bush and Paulson bequeathed to them, would you buy the common stock of that company? :eek:

I think Faber would right now buy the US equity market as as hedge against further dollar depreciation on the prospects that what happened in 2003-2007 with reflation of bubble could well be on its way again--value considerations be damned.

[kartius919]

Re: Everything is getting killed

I think stocks would be a good idea after this correction plays out. Stocks have been on too long of a bull market without the usual profit taking. So could drop another 20% possibly?, who knows. But I will wait till the end of November or early December to build a position in energy. Also will buy more gold and silver then!

[Slimprofits]

Re: Everything is getting killed

Specifically, starting at 10 am EST today it looks as if there were movements in gold and the USDX in direct response to this press release from the Fed:

http://www.federalreserve.gov/newsev.../20090924a.htm

In general, I'm guessing the USDX is up because some people still have faith in the Fed and part of the announcement was that the buying of treasury securities is coming to an end. Also the wording changed in this latest FOMC statement from "all available tools" to "a wide range of tools."

[cobben]

Re: Everything is getting killed

Bill Cara is thinking like you, but including not just the Fed but the ROW and the G20 meeting.
Personally I have tried to hedge both outcomes.

http://caracommunity.com/content/car...y-sept-24-2009

" . . .
In fact the backroom negotiating going on right before this G-20 meeting has, I surmise, been the biggest ever, leading me to believe that something big is coming down from the G-20 meetings today and tomorrow in Pittsburgh. I don’t think it’s the Super Bowl; but I think it’s Super sized. I think the $USD is going to rock on now. I can hear the crowd roaring from Europe, the UK, Canada and Japan. They needed the break, and it probably cost them something they wanted now, which is a new international reserve currency. I think Teflon Timmy asked them if they’d accept an 85 cent US Dollar in the meantime. I even think he can’t get the smirk off his face thinking about how lopping $100 off the gold price is going to look on the face of GATA’s Bill Murphy.

Aha, don’t cry if it happens. America will still go bankrupt; it’s just a matter of when. Gold will still go to $2500 and probably much higher; it’s just which year. Crude Oil will exceed $100 and maybe $150 long before the carbon trade is finished ripping off people for Goldman Sachs or electric cars or wind farms and solar energy fields make sense without taxpayer paid incentives.

Think of it this way: should Gold hit $900/oz; you can go buy the winning lottery ticket.

Geithner, like his predecessor Hank Paulson, is not a rocket scientist, and this stuff is not that hard to figure out.

Follow the money. Buy low; sell high.
. . ."

[goadam1]

Re: Everything is getting killed

I think stocks would be a good idea after this correction plays out. Stocks have been on too long of a bull market without the usual profit taking. So could drop another 20% possibly?, who knows. But I will wait till the end of November or early December to build a position in energy. Also will buy more gold and silver then!

Ah the 20% drop we have been waiting 4 months for. 20% must be a magic amount to people.