Trader’s Narrative

Darn, I meant to post this yesterday but, ran out of time. Now it won’t seem as brilliant but what the heck…
After the recent panic selling, the relationship between stocks and bonds got out of whack in a major way. Basically, relative to each other, stocks were very cheap and bonds very dear.
This […]

You’d have a headache too if you had his job.
We’ll never know how the market would have traded without the Fed rate cut but I have a feeling it didn’t make much of a difference.
I’ve been telling the Fed to cut rates since last summer so if you’re one of my 4 long term […]

Most people assume automatically that a sustained interest rate cut campaign by the Federal Reserve has obvious consequences for the stock market, the dollar, commodities and gold.
The common line of thinking goes that interest rate cuts will help the market, by making equities more attractive relative to bonds, hurt the dollar by making it less […]

So after the Fed cut rates as expected, and the market was miffed that it wouldn’t be enough to remedy the credit crisis wreaking havoc in the financial sector.
And then a day later the Fed came out with all guns blazing, with their international “friends” in Switzerland, Canada, Europe and England by their side.
But, to […]

So the Fed came in with a 25 basis point cut, as expected by the markets, and everything went to hell in a hand basket. Hmm, I wonder if you can tell when, exactly, the news came out:

The bond market closes at 3pm, while the equity markets close an hour later. So stocks had one […]