Cash, first, I'm not saying the Fed can control everything. I do believe that the Fed plays a huge role in the economy and is therefore part of the market cycles. That the Fed tries to manage the economy is beyond question, and if the Fed can and does manage the economy, it directly or indirectly manages the stock market.
Second, long before the NASDAQ crashed, I read comments by Greenspan saying it likely would and that wise investors should take notice. I so clearly remember the night I read Greenspan's quiet comments to that effect in 2000, and then watched it come to pass. He in effect said that it was necessary to bring the mania under control, and the Fed's raising of interest rates prior suggest that the Fed knew exactly what it was doing. So once again, Fed management of the economy and at least indirectly the stock market.
Third, if you simply examine the charts of FOMC activity prior, during, and after market declines and rallies, you will at least see the possibility of a correlation. I'm sure this correlation can be argued and discussed forever. The recent ramping up of Fed activity in November, December and early January is at least significant.
I'm not complaining one way or another about market manipulation. I'm just taking note of possible Fed management of the market. This may be one instance where market cycles have actually been altered, because it sure seems like an 80-week rollover was beginning and then turned on a dime. Just a possibility, and this is just a discussion, and there is real evidence to support it.
"Aaarrrggghh" offers limited insight into the subject. :)
BB
AI
