Comments on: What Really Killed The Rally?

By: NewstraderFX

NewstraderFX — Sun, 12 Jul 2009 23:00:18 +0000

IMO, if the Fed were to indicate that it might start cutting back on its liquidity programs (which it has to small degree already) and begin to normalize interest rates, it would be a bullish sign for stocks and commodities (and therefore dollar negative) because the Fed will only withdraw these extraordinary monetary policies as conditions improve.

By: Surya Tyagi

Surya Tyagi — Sun, 12 Jul 2009 22:35:31 +0000

Nice analysis. However, on the last piece above I am little uncertain why the dollar should be a sure sell with interest going up. Because what is also another factor in play is that dollar yield is going up too making it more attractive.

By: mcarniol

mcarniol — Fri, 10 Jul 2009 11:48:52 +0000

You’re correct to a degree Jeff-there was technical factor with GM and Chrysler (early plant closings). Also, the number of continuing claims made another new record which indicates employers are not all that anxious to hire.

Still, I’ve seen the market rise on bad news plenty of times. So, if this can be considered “bad” and the market can’t rise on it, it’s still a bearish sign.

875 broke intra-day on the S&P yesterday and it looks to close below there today, looking at European trading and the pre-market.

By: mmarinescu

mmarinescu — Fri, 10 Jul 2009 08:52:37 +0000

this is a great piece of analysis Matt, keep these articles coming!

By: Jeff

Jeff — Fri, 10 Jul 2009 08:03:22 +0000

Employment numbers really were not that good considering that last week was only a 4 day work week. Completely bearish sign this is.

By: Caitlyn Duke

Caitlyn Duke — Fri, 10 Jul 2009 04:19:27 +0000

you really think