“A day after the Federal Reserve disappointed investors with a modest cut in interest rates…”

Was there anything so ridiculous as the petulance of Jim Cramer’s wall street?

A day after the Federal Reserve disappointed investors with a modest cut in interest rates, central banks in North America and Europe on Wednesday announced the most aggressive infusion of capital into the banking system since the terrorist attacks of September 2001.

Most market specialists and economists welcomed the effort but concluded that it would probably have only limited success in addressing broader problems in the global economy and the credit markets.

In response, stocks initially surged in New York, but most of the early gains dissipated in afternoon trading as the market moved wildly up and down through the day.

Over at the blog The Big Picture:

We continue to discuss the technical aspects of the Dow action in the office. There is a divergence of informed opinions, ranging from “Breakout over 1500 SPX was bullish” to “Let’s wait and see” to “a major top is forming.”

The strong opening gap yesterday, followed by a near 400 point reversal, only to close marginally higher is, in my opinion, simply awful technical action.

It was concisely put over at the Wall Street Journal (linked out-to at the Big Picture):

A day of exceptionally volatile gyrations in stocks left traders exhausted, and showed how nervous investors still are about the market’s prospects.

Finally, Eco 1 students: I’ve mentioned, several times now, the over-investment that drove a lot of the dot-com-busted recession earlier in the decade. In the same post, the Big Picture carries an excellent illustration of (a) precisely that and (b) why the current threats to jump out of Blue Chip Windows is pure glutton’s melodrama.

monthly dow graph


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