So is there much short term upside for the passing of the auto bailout? What's the chance that we sell off hard on the announcement?
chances we gap up and sell off on the announcement are very high. the market is expecting this to get done and it would be a "buy the rumor, sell the news" sort of set up.
Another sign of how we live in some very unusual times ----------------------------------------------------------------------------------------------------- Treasury Sells $30 Billion of Four-Week Bills at Zero Percent By Cordell Eddings and Daniel Kruger Dec. 9 (Bloomberg) -- The Treasury sold $30 billion of four-week bills at zero percent for the first time since it began selling the securities in 2001 amid persistent demand for the safety of U.S. debt during the worst financial crisis since the Great Depression. The bills were sold at a high discount rate of zero percent, the Treasury Department said today in Washington. The government received bids for the bills totaling more than four times the amount sold. “It’s the year-end factor with those four-week bills,” said Chris Ahrens, an interest-rate strategist in Greenwich, Connecticut, at UBS Securities LLC, one of the 17 primary dealers that trade directly with the Federal Reserve. “Everyone wants to be in bills going into year-end. Buy now while the opportunity is still there.” Indirect bidders, a group that includes foreign central banks, bought 47.2 percent of the amount sold, compared with 31.7 percent in the prior auction. Primary dealers bought 52.1 percent, while direct bidders such as individual investors purchased 0.7 percent. Yields on government securities have plummeted this year to record lows as investors have gravitated toward their safety as stocks and emerging-market assets plunged. Rates on three-month bills, viewed as a haven in times of turmoil, traded at a negative rate of 0.01 percent today. The Treasury sold $27 billion in three-month bills yesterday at a rate of 0.005 percent, the lowest rate since it starting auctioning the securities in 1929.
Yeah. Nothing more than a test for a possible bounce, since it has formed a pretty solid support base at $1.
Hmm. Market isn't breaking past 887 retracement level. I think you were right, we may be headed for a massive short squeeze.
i was hoping for it today but who knows....we did manage to fill the gap from a couple days back on the dia (but not spy) and consolidate so we will wait and see how that plays out.
Man, those things are volatile like a mother. I wouldn't mess around with them unless I was a full time daytrader.
I am riding FXP since early morning. Based off some weakness I saw in Shanghai/HK markets (did it anyways even knowing ADRs don't really follow their counterparts). Maybe should have closed at eom... hopefully will see at least a small gap down tomorrow.
negative territory now on fxp. ADR's outperforming their China counterparts. I'm lucky my entry was pretty much yesterday's highest value on fxi and I'm not losing more, but in hindsight it was not a good trade. Agree that there's lots of positive movement and likewise expect a strong bear rally sometime soon.
Beginner online trader here. Have you heard of the term "unsettled funds"? I am allowed to buy stocks using these unsettled funds, but they warn I could be banned for trading for 90 days if I sell these stocks I bought using these funds until the funds are no longer unsettled. What the hell does that mean and how long does it take for me to be able to sell them without punishment? I've heard it takes 3 business days.
anyone getting the drift that first round of auto bailout will not pass? even watching c-span right now. not sure how market will react. guessing knee-jerk downside.
