The 'cut interest rates now'
pimps hustlers were out in
force Wednesday afternoon buying stocks, convinced that bad news is just what
Well, I don't wanna say
Despite the rally into the close, market internals, well, sucked.
Of course another story today was the rebound in energy markets as supplies were disappointing. Oh, and by the way, the Turks were bombing northern Iraq which didn't help matters. But Iraq has become target practice for many countries including its neighbors.
So then there's always our overbought friends overseas.
I guess we'll be waiting around for the Fed early next week. Those believing the dye is cast for an interest rate cut are pretty excited. Just remember, sometimes interest rate cuts reflect serious economic difficulties a la 2000-2002 when no amount of cutting helped stocks.
So, it will be interesting to see when the inevitable rate cut is announced if bonds and/or stocks rally or sell-off. We'll just have to wait and see.
Disclaimer: Among other issues the ETF Digest maintains long or short positions in: QQQQ, SPY, MDY, IWM, FDN, IEF, USO, DBE, UDN, GLD, EWQ, RSX, INP and FXI.