Fed cuts 75 bps - and I look at EJ and get a deja vu.. | Forex Factory

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Fed cuts 75 bps - and I look at EJ and get a deja vu..

  • #1
  • First Post: Jan 22, 2008 9:51am Jan 22, 2008 9:51am
Anyone remember this TL?

Just like with the over night cut way back when on the DJI, just as we were starting to lose a trendline an interventionary cut is made.

This is now the second time this becomes noticeable.

Really, is it always coincidence where this happens?

Not to mention the DJI future's lows at 11450 coinciding with 2006 March/April's highs => support.

And where was Gold? 850$, November 2007's high -> res turned support as well.

I mean, come on, either someone is a very funny guy or this is all pretty gaga


Either way, I do rather wonder what will happen near today's close / tomorrow.
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  • #2
  • Jan 22, 2008 11:29am Jan 22, 2008 11:29am
Look at it this way: The scheduled FOMC meet is not too far away, so from a fundamental standpoint, they really could have waited... But by then the technicals would have looked even more grim, and it would have been too late TECHNICALLY. That's a big reason why they acted today as opposed to next week (IMO). Don't forget, the CB guys have charts and trendlines too.

Still though, so many coincidences coming together all at the same time... gaga might just be the answer.
  • #3
  • Jan 26, 2008 1:45pm Jan 26, 2008 1:45pm
Quoting fierceman
Look at it this way: The scheduled FOMC meet is not too far away, so from a fundamental standpoint, they really could have waited... But by then the technicals would have looked even more grim, and it would have been too late TECHNICALLY. That's a big reason why they acted today as opposed to next week (IMO). Don't forget, the CB guys have charts and trendlines too.

Still though, so many coincidences coming together all at the same time... gaga might just be the answer.

The relevance of this cut for me arises from a cause and effect viewpoint. The Fed's normal reactionary endeavors intend to be causal phenomenon implemented to control inflationary volatility. When a surprise cut such as this is maneuvered, this causal stance is no longer valid, changing the whole context and correlational factors that normally apply.
As this Fed position moves more and more to the extreme effect side of the cause and effect spectrum, its actions have less and less ability to ascertain the required long term influences that were originally intended. The Fed's actions are indicative of an organization that no longer has sufficient control or influence over its "fiduciary" duties and that has become a puppet to the effects of its living beastly purpose.
Man who scratches ass should not bite fingernails
  • #4
  • Last Post: Jan 28, 2008 12:17am Jan 28, 2008 12:17am
Quoting Leugimp
The relevance of this cut for me arises from a cause and effect viewpoint. The Fed's normal reactionary endeavors intend to be causal phenomenon implemented to control inflationary volatility. When a surprise cut such as this is maneuvered, this causal stance is no longer valid, changing the whole context and correlational factors that normally apply.
As this Fed position moves more and more to the extreme effect side of the cause and effect spectrum, its actions have less and less ability to ascertain the required long term influences that were originally intended. The Fed's actions are indicative of an organization that no longer has sufficient control or influence over its "fiduciary" duties and that has become a puppet to the effects of its living beastly purpose.
Very well said.
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