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User Info Here is why the market may jump on Paulson proposal; entered at 2007-12-02 12:24:05
Guydaley
Posts: 15010
Registered: 2007-07-10 Wyoming only ATM
The market jumps because the media reported something from a government official that CAN BE construed as something beneficial.

The more ambiguous the better, that way its open to interpretation and of course media will spin it as positive and the market gets to trade it that way. Every single time, this has happened. For that matter, too often negative news is good because that will then mean another rate cut. It DOESN'T MATTER that rate cuts are ineffective and irrelevant. The market has PREDETERMINED that it is good news and therefore will trade it as such.

THAT is the short answer to ALL news releases from government. THAT is how all news releases have traded since I've been scrutinizing this historical period beginning mid-July.

Last modified: 2007-12-02 12:25:06 by guydaley

2007-12-02 12:24:05