NW, Hello. I margined going into the meeting and think that the bears, and those interested in talking down the markets because they did not get in at or near the most recent bottom, are going to be hard pressed to further gamble missing on an upturn with the consecutive interest rate cuts. The train continues to move forward and although the earnings will not reflect any of the most recent actions immediately, investors' view of stocks across the valley is becoming clearer and clearer. Since one typically looks forward, as that view improves, confidence will too and that will tend to lift the markets in general much sooner rather than later, IMO.
I suspect we will be choppy for a day or two as shorts cover smoothly and establish other positions as well as institutional investors that were expecting to get in after the news are further reassured of the FED being their friend, and not a foe.
Personally, I think the threat of stalling the economy is well taken care of with energy prices and power shortages. The FED is on our side for the time being and as previous posts indicate, I think most did not expect such a positive stance from the FED today.
Just my five cents.
Best regards, |
