[quote=livinincali]I think the market is starting to figure out that the fed really isn’t in control as much as they’ve thought. For awhile people have been thinking that the fed is an insurance policy for being long. I think people are starting to open their eyes and see that economic conditions across the globe are deteriorating and that faith in the fed might not be able to save them.[/quote]
Allow me to propose a different narrative. The market doesn’t have a clue. At the margins it’s traders who only worry about will the market go up in the next few minutes or will it go down. Lots of nervous traders who felt that this fed meeting was gonna be a big deal. No one seemed to know which way it would be a big deal, but it was gonna be a big deal. Once the momentum started swinging one direction it just kept right on going. This last two days of market moves have nothing to do at all with what the fed actually said. It has nothing to do with where the economy will go x years in the future. It has everything to do with traders who will bail or buy in an instant depending on how they feel momentum is going. Not on fundamentals or economic realities.
