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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Grandk who wrote (88441)	9/7/2007 4:06:52 PM
From: Smiling Bob	Respond to of 306849

Except the market had pretty much priced in a cut this time- and expecting it. There's also the SOS message sent by doing so. In addition, WS is coming to grips with the fact that rates are not the main problem and rate cuts won't save the economy or re-inflate the housing bubble- which was what the economy had been growing on.

To: Grandk who wrote (88441)	9/7/2007 4:09:06 PM
From: deeno	Respond to of 306849

could be right. Maybe you ought to go flat. But, in this case, I think you'll see a buy on rumor sell on news strategy. Lets face it, IF they really needed to cut, the underlying premace is not good for the market. After a quick couple hundred points to the upside the fall may be quite as percipitas. If its hot money and your a trader, plenty of time to go both ways. Good luck.

To: Grandk who wrote (88441)	9/7/2007 4:15:42 PM
From: ballsschweaty	Read Replies (1) \| Respond to of 306849

I plan to heavily short any post rate cut euphoria. iht.com

To: Grandk who wrote (88441)	9/7/2007 5:18:35 PM
From: jcole05	Read Replies (1) \| Respond to of 306849

I find it very hard to predict the way the market will react. For example, I was quite surprised that the reaction to the last Fed meeting was a hard spike down followed by a near immediate reversal because their action was viewed as a vote of confidence in the economy. Likewise, a cut could be primarily seen as an admission of weakness instead of a reason to look toward the future stimulatory effects of said rate cut(s). This time around, I plan to stay a bit light in terms of risk exposure until we get a bit more info. As I've posted, I have spent about 95% of the last 6 months being short with very occasional (and brief) longs. WHEN/if we get a rate cut, I'll jump in heavily on the short side if the market is still fairly near it's all time highs because whatever mania we see should have no staying power. If we've declined a bit from these levels, and hopefully I've profited from being short, I think it will make sense to be a bit more cautious before getting heavily short. Long post to say I don't know what's going to happen, but I think the overall trend is still down and I plan to position myself accordingly.