baletwine....
I believe the driving force behind the rally has been and still is all the Fed, by driving up a small group of leading stocks on up days and limiting the selling on down days through support buying in those same stocks (not the same stocks every day, by the way). They do not buy all the stocks, just a small group of very key stocks that have a large influence on trading in the rest of the market.
Today is a good example -- notice the lack of damage in INTC, MSFT, CSCO, IBM, etc. even though the market is down 70 points, and also note that the $USD is up providing additional psychological support. Had the $USD been tanking again today, there would be even more selling pressure in the markets. Gold is also down on a down day in the markets after a bombing in Saudi Arabia that killed a number of Americans - not normal market action that one would expect.
From that, I expect today's selling to be well contained even though AMAT reports this afternoon with almost zero chance of good news and a good chance of quite bad news.
Your tax money at work, courtesy of the Greenspan Gambit.
It is key to understand that Greenspan has no choice but to do what he is doing. To not do so almost guarantees a serious global recession and probable deflation, and it could easily get worse from there. If I were Greenspan, I would be doing the same thing (but hopefully, I would not have made his earlier mistakes that led to being in this situation.)
mlsoft
AI
