OK the Wall Street manipulators are taking this thing way too high on the rate cut crap. Remember interest rate cuts can't be the arterial rot-to rooter of the banking system because the blockage is not borrowing costs but, rather that associated risk of borrowing cannot be determined. The S&P500 SPX has been in a downtrend for the better part of three months with a series of lower highs, 1590 then 1550 in October and 1490 in November which happens to be the 200 day simple moving average. They have broken that trend line and probably suckered the general public into supporting the 200 dma as well (Link 1). Just another little splinter in the shaft used to poke you with. How many time have seen it before, the market runs up into the rate cut only to sell off after? They want you to think you'll always be safe buying the pullbacks and holding, you'll get killed. In this market you do not buy the pullbacks you sell into the rallies. The US economy has been gouged and torn deep for a decade or more by the excess addicts on the Street and their corrupt enablers in Washington. Wounded and reeling it will not recover by the mere application of rate cut band aid. Everyone on the Street knows it and you'd better know it too, if not you will be buying in just as the institutions are selling out and the US economy is dropping dead.
Link 1:http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=spx&sid=0&o_symb=spx&freq=1&time=6
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