Posted on 02/25/2009 12:15:20 AM PST by Canticle_of_Deborah
The market's reaction, that is.
A commentator on CNBC, when asked if he was going to buy or short the market at the end of the speech, said "I'm shorting it right now."
Apparently he had his Crackberry with him and was doing it while talking, or he was channeling a lot of other people who were:
Pretty impressive little volume spike, and those sure weren't "buys" that came through on the futures.
There was no real reaction during the speech itself, but as soon as it was over, well, 0.6% isn't massive, but it is what it is, considering that we were essentially flat coming into the speech itself.
--snip--
This had better not spread into a broad selloff tomorrow. While the S&P 500 is back above the critical support levels, its not above them by much, and the DOW has not regained them. Should those levels be lost technicians will take that as proof of a "kissback" and the market will get shorted HARD, creating an immediate waterfall collapse.
The probability of that outcome if those closing levels in the SPX are lost (just 1% or so further down) is nearly 100%.
--snip--
And, as I finish this up, the futures are continuing to tank - now down six handles, or 0.8% - and declining.
(Excerpt) Read more at market-ticker.org ...
“Obama wasn’t going to be pushed around by the whims of the market.”
See my #19 and Dr Sowell’s “Conflict of Visions” for an explanation of this mindset.
It’s a river in Egypt isn’t it.
It’s actually a worldview thing.
The left sees the individual elite wizard of smart as able to make decisions for the whole. They put no value on the unarticulated systemic knowledge of the market (or tradition, law, etc).
You are welcome.
By the way; when we dropped 250 points on the Dow on Monday and broke below the post-9/11 lows of 2002; and then rose by less than that, 230 points, on Tuesday to close at 7,350; on a technical basis we just put in a “ceiling”, not a “floor”.
Now, there’s nothing between here and the Black Monday October 1987 floor around 1,700 on the Dow...on a technical basis, of course.
On the way down, provided that occurs, many public (and private) companies will fail, just from the already underfunded defined benefit legacy costs alone.
We cannot mathematically fund the promises made by our government now; and we just received a laundry list of gigantic new spending last night - the market will react to this - badly.
“They” must know this. Ideology aside; they must know it. Therefore, there can only be one possible operative conclusion: it’s intentional.
Market down about 173 that I saw a few minutes ago.
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