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I'm very very short the market via the ultrashort ETF's and am obviously annoyed with today's rating. That being said, I can't figure out for the life of me why we are up 300 today. The Fed has to cut 100 basis points to appease the market which has rallied on these hopes. If they cut 100 or more, they will tank the currency market... the USD/Yen has been crucial to the market recently, when the Yen strengthens, our stock market falls as the carry trade unwinds farther. A 100 point cut, besides being historically unprecedented, would cause a sharp sell-off in the dollar thus tanking the market. A cut of less than 100 disappoints the market and causes a sell-off. I believe the Fed will cut .5 which will panic the market. As I see it, the Fed is in a no-win situation... so, with all that said, why are we rallying today?
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