[Jay]

[Skibum]

Oh ya... has me feeling all warm and fuzzy inside....

[Skibum]

Nice day today....

[Jay]

And yesterday.
I think we're still in for interesting times as traders sort out what the Fed's gonna do. We have good earnings but a possible economic slowdown, inflation concerns relative to energy costs which, if the Fed focuses on that and not the bigger picture, we'll see upward prime adjustments which'll tank the market again.

JMHO.

Have a fun ride

[Skibum]

Bernanke needs to learn to keep his gums from flapping......

[Jay]

It's partially what he DIDN'T say yesterday that drove the mkt

[Skibum]

What did he say today..... lol

[Jay]

He said nothing but the Federal Reserve appeared to soften its stance on future interest rate hikes, saying it would consider both the economy's health and inflation as it formulates its policy.

"It's the first time the Fed has connected the weaker growth with the outlook for inflation," said Markus Schomer, economist for AIG's Global Investment Group. "That's very positive for the outlook going forward."

I.E., they usually focus only on inflation; growth is very strong and they seem to be factoring that into the overall picture.

Perhaps this is a breath of fresh air.

Even bonds went up.

To answer Ski's specific question, I guess this as close as it gets:
"Schomer said the key change to the Fed's statement was a shift in wording about future rate increases. The central bank previously cautioned that further tightening could be required to contain inflation; in its latest opinion, the Fed simply said "any additional (policy) firming that may be needed" will depend on economic data.

[Skibum]

It just amazes me that this is what moves the market 3%..... there were no surprises here..

[Jay]

Yeah, I played in that patch for a while after my 20 with RadShack. Made a lot of bucks but had no idea what I was doing (guess I was lucky) - or what anyone else was doing. Strange biz!

[jayfro]

Its "fun" being in the market data business during these reports. Trying to keep enough server capacity and bandwidth (inbound from the exchanges and outbound to the customers) is a challenge. I watch these reports as soon as they come out (and listen via a squak box). As soon as the announcement hits (1:15 ct), the market just go completely nuts. The number of shares that trade within a 5 minute timeframe is completely outrageous! Ill have to see if I can get a chart of the market data volume during the day. Huge spike in the morning, huge spike during economic releases, and decent spike at market close.

Its funny how it isn't about the actual information, its about how different the information is from expectation.

Jay Fro

[Skibum]

It is reaction to a non-event.. or someones perception of that non-event.