Buzz & Banter
First, this little rally this morning brings into full relief how scared shorts are to have exposure on ahead of the Fed meeting, and how confident longs are to keep theirs. After all, since the Fed has been so successful in goosing the stock market for the last several months (with liquidity, with deflation talk, with jawboning about buying the curve), why wouldn't you trade the trade that's worked?
Which brings us to the second observation: Whatever the actual number of basis points the Fed cuts by, pay close attention to the language in the release. As the Fed has gotten closer to the zero boundary on the Fed funds rate, they have systematically become more aggressive in verbal/written persuasion of the markets (starting with Bernanke's November printing press speech). Fewer bullets means more arm-waving. Let's see how vigorous they want to wave their arms this time.
n on this website solely reflects the analysis of or opinion about the perf=
ormance of securities and financial markets by the writers whose articles a=
ppear on the site. The views expressed by the writers are not necessarily t=
he views of Minyanville Media, Inc. or members of its management. Nothing c=
ontained on the website is intended to constitute a recommendation or advic=
e addressed to an individual investor or category of investors to purchase,=
sell or hold any security, or to take any action with respect to the prosp=
ective movement of the securities markets or to solicit the purchase or sal=
e of any security. Any investment decisions must be made by the reader eith=
er individually or in consultation with his or her investment professional.=
Minyanville writers and staff may trade or hold positions in securities th=
at are discussed in articles appearing on the website. Writers of articles =
are required to disclose whether they have a position in any stock or fund =
discussed in an article, but are not permitted to disclose the size or dire=
ction of the position. Nothing on this website is intended to solicit busin=
ess of any kind for a writer's business or fund. Minyanville management=
and staff as well as contributing writers will not respond to emails or ot=
her communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.<= /p>
Daily Recap Newsletter