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Did someone(s) know the rate cut in advance?

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With a dramatic fall in the markets yesterday (Dow dropping over 300points) and then amazing recovery to close almost flat, and todays announcement of rate cuts, I am forced to wonder if someone(s) knew about this and knew that markets will gap-up on the news. This is quite insane to ask this question but I don’t know, I can’t stop thinking and linking the chain of events. Only time will tell us whether or not it was the case, I wanted to record my thought right here at my blog that I smell something fishy, but hey that’s just me and this time, I would love to be wrong.
So now the discount window rate cut is announced, what does it mean…..THINGS ARE BAD and fed now needs to intervene. Thanks Cramer.

Till then, enjoy the ride, OP

Comments

3 responses to “Did someone(s) know the rate cut in advance?”

  1. Robert L. Avatar
    Robert L.

    OP,

    Big Doggy posted this on his blog yesterday.

    “FED

    Chatter that FED is holding an emergency meeting… not giving it much weight, but maybe part of the rally…

    Posted by Big Doggy on Thursday, August 16, 2007 at 12:53 PM | Permalink | Comments (0) ”

    ——————————–

    Seems like there must have been something to that rumor. Everyone on the Street is going to get that info once a few people know. How can the Fed hide it? Even if they meet in secret (which would be difficult), someone will know and someone will pass along that information.

    Sure, maybe that person doesn’t know what the result is, but the Fed will surely do something if they hold an emergency meeting.

    It seems very likely that this measure may have been intended to help companies like Countrywide.

    Reply
  2. Gonzalo Avatar
    Gonzalo

    On Wednesday open, the highest Open Interest on SPX was right at 1450 strike…did you check settlement today?? 1450.11 !!!

    Reply
  3. simply options trader Avatar
    simply options trader

    Hey OP,
    I was talking about how the technicals were showing a likely short term bounce in my blog, before the bounce took place. I certainly didn’t expect the Fed to cut the discount rate!

    But whether this bounce is truly a point of reversal or only a short term bounce remains to be seen.

    Reply

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