The bears den

[theMKR]

Good ... Elon Musk is sweating

I sweat la. That time he go annouce the new shares issue i jitao gg.com

Now i most scared is he use spaceX to tahan tsla

 

[theMKR]

Wah pre mkt from red to green

 

[DukeCS33]

I think we are getting into another range say 2720/2725 to 2795/2800. Slow range bound trading. Anyways, its a new month and we are already seeing some risk on in the currency markets.

I'm looking at selling into the rally if it comes closer to 2800.

https://www.cnbc.com/2019/05/16/mar...witter_impression=true&recirc=taboolainternal

I see things oversold and so would favour a small bounce.

 

[Trader11]

Wah pre mkt from red to green

While(TRUMPTARD TARIFF)
Green then to red on Friday.

 

[theMKR]

1 day red 1 day green. Friday red, mon green?

 

[Trader11]

1 day red 1 day green. Friday red, mon green?

1% drop is higher than 1% rise

 

[Trader11]

US Man PMI indicating recession coming for manufacturing sector

 

[Trader11]

Trumptard tariff is harming us economy

 

[DukeCS33]

Interesting mix session with Nasdaq down 1% but S&P paring losses to trade +0.20%

 

[revhappy]

If market wants a rate cut, it needs to fall to 2650. If market goes above 2800, then no rate cut. So market needs to decide what it wants.

 

[theMKR]

today fugging difficult to trade

 

[coolhead]

If market wants a rate cut, it needs to fall to 2650. If market goes above 2800, then no rate cut. So market needs to decide what it wants.

why rate cut depends on stock market?

That will mean the FED is held hostage by stock market forces.

 

[theMKR]

ok since its so difficult to trade, i going to use my cat.

counters are: aapl, tsla, amzn, shop, nvda

buy/sell

 

[revhappy]

why rate cut depends on stock market?

That will mean the FED is held hostage by stock market forces.

It is. Powel mentioned that if financial conditions tighten they will cut rates. When stock markets plunge, financial conditions tighten.

There is no other reason to cut rates. Job market is strong. Inflation is stable. So Trump admin is trying to induce a stock market plunge and some chaos so that Fed can cut rates.

 

[theMKR]

ok since its so difficult to trade, i going to use my cat.

counters are: aapl, tsla, amzn, shop, nvda

buy/sell

ok my cat choose tsla + sell

 

[revhappy]

ok my cat choose tsla + sell

I am guessing we will have a plunge middle of the day, followed by a recovery towards the end of the day.

 

[theMKR]

I am guessing we will have a plunge middle of the day, followed by a recovery towards the end of the day.

i nv listen to my cat, cos i already deep in tsla short lolx

and as a reference, it was 182.32 when he bite the treat

 

[theMKR]

ok new tactic, i going use my fish.

 

[theMKR]

fishes pick aapl + buy

 

[coolhead]

It is. Powel mentioned that if financial conditions tighten they will cut rates. When stock markets plunge, financial conditions tighten.

There is no other reason to cut rates. Job market is strong. Inflation is stable. So Trump admin is trying to induce a stock market plunge and some chaos so that Fed can cut rates.

I suppose everyone has their story/view.

It is giving too much credit to Trump that he can cause the stock market to fall and as a result, financial conditions tighten.

Imo, it's the other way. Financial conditions tighten and hence stock markets plunge. The tightening of the financial condition is largely determined by the Fed.
Of course worsening economic outlook can cause banks to tighten corporate loans. However, worsening economic outlook meant that the economic data is already going from bad to worse and hence, the Fed can act to cut interest rates in order to promote lending and to counteract the bad economic data.

As of now, I do not see the causality that Trump wants to lower interest rates by causing the stock market to fall due to his trade war actions. But as a result of his trade war actions which cause the economic outlook to worsen and henec financial conditions to tighten, this will then cause both the stock market to plunge as well as Fed to possibly lower interest rates.