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Strategies & Market Trends : Sharck Soup

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To: Sharck who started this subject6/27/2001 3:37:00 PM
From: Softechie  Read Replies (2) of 37746
 
Market Reaction to Fed : Why the rally attempt off the lows when Fed action is viewed as a disappointment? Traders attempting to catch shorts leaning in the wrong direction, while aggressive investors use intraday price weakness as a buying opportunity. With it clear from this last policy move that the Fed is beginning to ease itself out of the picture, investors/traders able to take back control of the market. Especially in tech, disappointing Fed move being viewed as a trading opportunity. In the same fashion that major warnings over the past two days from AMCC and VTSS have been viewed as a chance to fade the obvious reaction to the news. Have reached the point in the equity market downturn that bad news is considered a trading opportunity, particularly when it is clear that there is heavy short exposure (Dow -20, Nasdaq -11).
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