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  1. #1
    futuretrends24 is offline Senior Member
    Join Date
    Apr 2009
    Posts
    148

    Default Stocks Plunge after Hours Following Fed Discount Rate Hike

    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. stock indices plunged after the close following a discount rate hike by the Federal Reserve. Although the hike was not a surprise per se since Bernanke and the FOMC minutes hinted it would happen, the timing caught traders by surprise.

    While not actually tightening the financial system, the Fed sent a signal that the stimulus days are ending and that more rate hikes should be expected. Stock indices sold off in post-market activity. Earlier in the trading day, the March E-mini pierced the psychological 1100.00 barrier triggering an acceleration near a .618 retracement price at 1107.00. Buying dried up at 1106.75 until the close.

    The markets traded higher throughout the day although in a volatile manner. Weak U.S. Weekly Jobless Claims came out higher than expected, driving stocks lower this morning, but investors quickly bought the dip before rallying after the release of the bullish leading indicators report and the Fed Philadelphia survey.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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  2. #2
    mdk009 is offline Junior Member
    Join Date
    Feb 2010
    Posts
    9

    Default

    i definitely didnt see them hiking this fast. i mean who really thinks this is a real recovery anyway. of course everythign is going to look good on paper when you inject trilliions of liquidity back into the system. the problem is you really have to see where they got the trillions-- out of thin air.

    just for the record i do think interest rates need to be higher than where they are today thats hard to deny.

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