Down goes the Dow

If you want to get into FOMC, and whatnot... go ahead. To say that the FED does not ultimately have the last say in rates, is disingenuous, at best.

When "the FED is keeping rates low for the time being", it means that the FED is controlling the 'markets'. Rocket science... I know.

Janet Bernanke wrote:

If you want to get into FOMC, and whatnot... go ahead. To say that the FED does not ultimately have the last say in rates, is disingenuous, at best.

When "the FED is keeping rates low for the time being", it means that the FED is controlling the 'markets'. Rocket science... I know.

you know as well as I do that the Fed currently sets one interest rate - a highly technical very short term rate.

the other rates are set by the market.

I will agree that currently during and after QE whatever. the Fed owns a lot of treasuries and that is probably has influenced longer term interest rates a little. But come on - you are exaggerating to say the Fed is 'controlling the 'markets''

saying that just makes you feel smart - no one is controlling the markets, nor could anyone control the markets.

Obviously, the Fed ;) balance sheet has expanded exponentially, but, the question that could have an interesting answer, is, has the Fed bought equities? i.e. manipulated (controlled) the market through the purchasing of stocks.

Bernanke is on record (pre-chairmanship), as saying that the fed can engage in the buying of equities as a method to prevent deflation.

Huah, gentlemen

Huah

huah yeah, up almost 300. I wish maserati had a blog, he was right about almost immediate corrections of drops, almost exact. This stinks of manipulation, the only issue now is timing an exit properly. Who knows how long this funny stuff can be maintained.

I wonder what the true fair value of the market is at the moment.

Congratulations to those who jumped in yesterday!

The VIX has been an excellent predictor of when to buy - for a couple years, you start buying when the VIX hits 20 and you back up the truck when it hits 24

http://finance.yahoo.com/echarts?s=%5EVIX+Interactive#%7B%22range%22%3A%222y%22%2C%22indicators%22%3A%7B%22sma%22%3A%5B%7B%22id%22%3A%22sma200%22%2C%22name%22%3A%22sma%22%2C%22params%22%3A%5B200%5D%2C%22lineType%22%3A%22line%22%2C%22color%22%3A%22%2338761d%22%2C%22weight%22%3A1%7D%5D%7D%2C%22scale%22%3A%22linear%22%7D

Just a few posts up talks about the banks buying stocks. I mean, this is pretty funny and scary at the same time. How does the market just rebound in a day like this? Funny money is the right term.

401 OK wrote:

huah yeah, up almost 300. I wish maserati had a blog, he was right about almost immediate corrections of drops, almost exact. This stinks of manipulation, the only issue now is timing an exit properly. Who knows how long this funny stuff can be maintained.

I wonder what the true fair value of the market is at the moment.

"True, fair value"??? Ummm...

Never mind.

See'er of stuff wrote:

Just a few posts up talks about the banks buying stocks. I mean, this is pretty funny and scary at the same time. How does the market just rebound in a day like this? Funny money is the right term.

huh? you are surprised when the market moves? New around here? This is how it works. You miss the best 10 days of the year, your returns get cut by 2/3 or something like that. and vice versa - you miss the worst 10 days of the year and you do a lot better.

but volatility is not evidecne of anything wrong.

for the record - these swings are mostly caused by computer programs all doing the same thing at once.

Ummm, the Fed banks just met yesterday, and Yellen said that rates would not be raised until at least April. And what do you know???... a booming day!!!

Once again, 'controlling' the market.

Janet Bernanke wrote:

Ummm, the Fed banks just met yesterday, and Yellen said that rates would not be raised until at least April. And what do you know???... a booming day!!!

Once again, 'controlling' the market.

that's like saying Walmart controls the market because when they say sales are great the whole market rises.

what yellen said turned the machines' buy/sell toggle to 'buy' , that's all.

So, Yellens words turned on the 'buy' switch, but had she said rates were moving up, the 'sell' switch would have been engaged.

What part of 'control' do you not understand?

Janet Bernanke wrote:

So, Yellens words turned on the 'buy' switch, but had she said rates were moving up, the 'sell' switch would have been engaged.

What part of 'control' do you not understand?

well maybe the difference here is that I'm just saying yellen's decisions and speeches are not meant to control the stock market. her decisions and speeches are meant to influence the economy.

the stock market is a derivative - it's not the reason for what she says

so 'control'...that implies she is pulling strings, directing prices.

which is wrong - traders take her sayings and doings and make decisions based on them.

The market goes up. The market goes down. Repeat.

agip wrote:

Janet Bernanke wrote:

So, Yellens words turned on the 'buy' switch, but had she said rates were moving up, the 'sell' switch would have been engaged.

What part of 'control' do you not understand?

well maybe the difference here is that I'm just saying yellen's decisions and speeches are not meant to control the stock market. her decisions and speeches are meant to influence the economy.

the stock market is a derivative - it's not the reason for what she says

so 'control'...that implies she is pulling strings, directing prices.

which is wrong - traders take her sayings and doings and make decisions based on them.

Analytics move markets more than speeches.

The Voice of Reason wrote:

The market goes up. The market goes down. Repeat.

YES!

agip wrote:

the stock market is a derivative - it's not the reason for what she says

which is wrong - traders take her sayings and doings and make decisions based on them.

So, which is it? "Not the reason for what she says"...... Or "her sayings and doings and make decisions based on them"?

Seems a little hypocritical, doesn't it?

Janet Bernanke wrote:

agip wrote:

the stock market is a derivative - it's not the reason for what she says

which is wrong - traders take her sayings and doings and make decisions based on them.

So, which is it? "Not the reason for what she says"...... Or "her sayings and doings and make decisions based on them"?

Seems a little hypocritical, doesn't it?

I would suggest that you familiarize yourself with the word, 'hypocritical', prior to trying to use it in a sentence.