A sell-off after a rally is understandable. Traders want to take profits off the table. But traders kept taking profits off the table for most of the day. That indicates there is a great deal of concern out there.
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54 minutes ago
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That Fed smack just doesn't have the kick the boys and girls in the market have developed a tolerance for. Could we be seeing a case of "Feddie's Dead," as Curtis Mayfield might have sung:
"Feddie's on the corner now... if you wanna be a junkie, wow...
Remember, Feddie's dead..."
"Everybody's misused him
Ripped him off and abused him
Another junkie's plan
Pushing dope for the man..."
I had heard mentioned that the market had priced in a full basis point cut by the close of trading Monday, and this was the cause of the late day rally.
What's really strange is the way commodities have been selling off regardless of yesterday's rally and today's decline. This goes against the trends of the past few months.
I thought simply that people were just moving cash into equities on Tuesday plus the Fed's "concern" over inflation that drove down Gold et al. But even as today's equity selloff intesified, so did Gold's.
Commodities has felt like a safe haven from equities for a while now. That's changing... and sounds omninous to me. What's left to go to?
I wonder how many of us have this in our future:
From the BBC.
http://www.boingboing.net/2008/03/19/documentary-examines.html
From the Dutch.
http://www.boingboing.net/2008/03/19/documentary-examines.html
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