I m watching one stock that might be a gem. Will see.

That's why for new investors: Sell on the news. Don't chase.

Buy buy buy!

Buy when people sell ma, then sell tomorrow as Dow rallies.

You add me on msn...i send you chart

Buy what?

Sorry, not watching tanjong

Personally i am not surprised on the power of the relief rally. I remember that i told the forum that should buy quality names few days back during the market correction.

And i did mention buying osk when it was below 1.20. For those who bought below 1.20 and sold it at 1.27, a job well done. Sometimes you can only trust the chartist so much...even i can get it wrong sometimes on the timing.

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Added on February 18, 2010, 10:02 pmCharting is an art, not something we can learn over the internet. It takes a lot of effort to backtest and retest on different markets.

This post has been edited by AdamG1981: Feb 18 2010, 10:02 PM

Buy during fear, sell during greed. Works for WB, should work for us too right?

I am signing off, gnite!

NEW YORK (MarketWatch) -- The dollar jumped against major counterparts on Thursday, after the Federal Reserve delivered a surprise hike in its discount rate after the close of U.S. markets. The dollar index /quotes/comstock/11j!i:dxy0 (DXY 80.93, +0.02, +0.03%) , which measures the U.S. unit against a basket of six major currencies, stood at 80.90 in recent action, compared with 80.38 ahead of the Fed move. The dollar jumped to 91.65 yen, while the euro slumped to $1.3527. The Fed said its 25-basis-point hike of the discount rate to 0.75% was to encourage banks to borrow more from the private market, and cautioned this was not a tightening of its monetary policy. But the dollar's reaction showed the market had another interpretation, according to Kathy Lien, director of currency research at GFT Forex. "Although the Fed went out of their way to say that this does not equate to a change in their monetary policy outlook, action speaks louder than words," she wrote in a note. "The most important takeaway is that the Fed is beginning to implement an exit strategy which is more than what many of the other central banks are doing and therefore this action will be extremely positive for the dollar."


FED RAISES DISCOUNT RATE from 0.5 % to 0.75%. MAYDAY MAYDAY....



Full statement:

Feb. 18 (Bloomberg) -- Following is the text of a statement today from the Federal Reserve in Washington:

The Federal Reserve Board on Thursday announced that in light of continued improvement in financial market conditions it had unanimously approved several modifications to the terms of its discount window lending programs.

Like the closure of a number of extraordinary credit programs earlier this month, these changes are intended as a further normalization of the Federal Reserve’s lending facilities. The modifications are not expected to lead to tighter financial conditions for households and businesses and do not signal any change in the outlook for the economy or for monetary policy, which remains about as it was at the January meeting of the Federal Open Market Committee (FOMC). At that meeting, the Committee left its target range for the federal funds rate at 0 to 1/4 percent and said it anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The changes to the discount window facilities include Board approval of requests by the boards of directors of the 12 Federal Reserve Banks to increase the primary credit rate (generally referred to as the discount rate) from 1/2 percent to
3/4 percent. This action is effective on February 19.

In addition, the Board announced that, effective on March 18, the typical maximum maturity for primary credit loans will be shortened to overnight. Primary credit is provided by Reserve Banks on a fully secured basis to depository institutions that are in generally sound condition as a backup source of funds.
Finally, the Board announced that it had raised the minimum bid rate for the Term Auction Facility (TAF) by 1/4 percentage point to 1/2 percent. The final TAF auction will be on March 8, 2010.

Easing the terms of primary credit was one of the Federal Reserve’s first responses to the financial crisis. On August 17, 2007, the Federal Reserve reduced the spread of the primary credit rate over the FOMC’s target for the federal funds rate to
1/2 percentage point, from 1 percentage point, and lengthened the typical maximum maturity from overnight to 30 days. On December 12, 2007, the Federal Reserve created the TAF to further improve the access of depository institutions to term funding. On March 16, 2008, the Federal Reserve lowered the spread of the primary credit rate over the target federal funds rate to 1/4 percentage point and extended the maximum maturity of primary credit loans to 90 days.

Subsequently, in response to improving conditions in wholesale funding markets, on June 25, 2009, the Federal Reserve initiated a gradual reduction in TAF auction sizes. As announced on November 17, 2009, and implemented on January 14, 2010, the Federal Reserve began the process of normalizing the terms on primary credit by reducing the typical maximum maturity to 28 days.

The increase in the discount rate announced Thursday widens the spread between the primary credit rate and the top of the FOMC’s 0 to 1/4 percent target range for the federal funds rate to 1/2 percentage point. The increase in the spread and reduction in maximum maturity will encourage depository institutions to rely on private funding markets for short-term credit and to use the Federal Reserve’s primary credit facility only as a backup source of funds. The Federal Reserve will assess over time whether further increases in the spread are appropriate in view of experience with the 1/2 percentage point spread.


This post has been edited by AdamG1981: Feb 19 2010, 08:26 AM

Hang seng dropped 360 points, dow futures -87

Suspected intervention by SNB.




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Maybe, possible. Anyways hsi futures further down

I think the opposite of the opposite. Those defensive names are heavily bought, leaving the small risky stocks untouched. I would speculate on the small caps coz its cheap as panic selling takes over.

HSI futures: -419, dow futures -90

Yup, like scomi. I am using fibo, and i have spare cash. So can speculate on out of flavor stocks.

I don't think Dow will melt tonight, maybe its going up further.

The initial reaction is "oh no, the fed is tightening". In fact, they are not. The libor os and ted spread have not widened significantly. There will only be a huge crash when the "money market players" think there's a liquidity shortage in the system.

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Added on February 19, 2010, 11:09 amAgain, anything is possible. But unlike U.S and U.K, the Chinese government has money to enhance its large fiscal stimulus programs.

This post has been edited by AdamG1981: Feb 19 2010, 11:09 AM

Supermax chart with Fibo channel projection


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Tanjong daily chart.



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Overbought. And riped for retracement