A lot of jawboning, zero action. This is the perfect play for the Fed. Had they come out on Sunday with a surprise rate cut, it might’ve spooked markets. Instead they issued statements, back-channeled nonsense via Steve Liesman of CNBC, and made a lot of threats. The net result was a monstrous rally. Now should that dissipate and we head back lower into the depth again, you can forget you ever read this.
But for now, it’s good. In about a fortnight, they’ll take their scheduled meeting and cut then, like gentlemen.
The G-7 is out with a message of comfort this morning.
Officials of most of the world’s largest economies pledged a united front in the battle against the novel coronavirus scare but offered no specific actions they would take in a statement issued Tuesday morning.
“Given the potential impacts of COVID-19 on global growth, we reaffirm our commitment to use all appropriate policy tools to achieve strong, sustainable growth and safeguard against downside risks,” the G-7 statement said.
More nothing, but who cares? Futures dumped out a little, but nothing too grave or serious. We have oil higher, gold higher, bond yields higher. I surmise we’ll eventually get higher stocks too. My bias has switched, for now, and I am bullish.
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Interesting that even during yesterday’s rally, the market continued to focus its selling on those who may lose a significant number of long-term customers – e.g., BKD and ENSG.
Fed cuts – call options PRINT. Robinhood FAGS bogged
Perfectly played indeed. Early post-open trading volume let their employers distribute at better prices.
2nd in my upcoming poetry book
“Petulent Market”
Sad Trump. FED cuts rate
Market rises, then crashes
Game over for bulls
Also, just to be clear, Fly’s post is old news.
The FED’s mandate is to prevent rich people from losing money, so instead of announcing their 0.5pt cut after the G7 meeting, they announced it without warning while the market was open
Thus their sheer powerlessness in the face of nature is laid bare for all to see
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200303a.htm
Good news for bulls: if you didn’t get to buy at last week’s lows, you’ll get another cahnce with 7 days.
Loading up for full beast mode
Dow posts single largest daily gain, better follow it up with a surprise rate cut the next day! Seems intelligent.
They didn’t have a choice. The market baked it yesterday (hence the DOW record).
When they weren’t getting a cut after G7, the market opend down. Hence, the FED had to do an “Emergnecy” cut. The Ermegency is that smart money hasn’t had enough time to sell their stocks to the dumb money, compounded by the fact that RobinHood is down (less buyers)
Markets aren’t happy enough and Trump demands MOAR cuts! My calls are in KR and RAD so I’m loving this shit show.
Coronavirus is gonna break central banks and then break the US health care system just wait
Might want to reconsider RAD …until it is clearer as to how much of their base survives.
Fed blew its load too early. Dumb…