ajtj....
CSCO, as I was thinking, met earnings but missed on revenues a bit - nothing big enough to cause a general market selloff, but certainly not good enough to drive a strong market rally either. We will soon see if the rest of my CSCO prediction will be accurate - to the extent that they provide guidance, it will be to the downside.
I am inclined to think a slow rally from here into the FOMC meeting next Tuesday in expectations of a rate cut. If CSCO were to guide lower, that might give us a day or two to the downside first, but a rally into the FOMC seems logical here. Of course that completely ignores the fact that another rate cut will do nothing to help the economy, even if they cut to zero. If rate cutting was the solution to the problem, we would be in great shape already, but I think that by now it has been well established that a cut would have little effect on the economy. What a cut would do is to weaken the dollar, and once folks take a little time to consider it I think they will come closer to being spooked by yet another cut.
Either way, I think the play on the 13th will be to be short and I look for a move to new lows whichever way the Fed goes. They are in a box, now, and whatever they do will be wrong.
Just my opinion, though.
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