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IPFS News Link • Stock Market

'Drug-Addicted' Market "Is Salivating For Rate-Cuts"

• by Richard Breslow

It's been a hard sell-off with a bid tone. It's the perfect environment for continuous bursts of activity as short-term positioning imbalances get unwound because conviction within the speculative community is so very low. As it should be. But that's not a recipe for achieving successful results.

The reality is that the current issue besetting the market is going to take longer to be resolved than the level of patience too many investors are any longer capable of exercising. We live in a world where there are long-term investors, short-term participants and seemingly no one in-between.

Markets used to derive a great deal of stability from traders with a medium-term perspective. They cared about the news. They respected price action. But, they attempted to understand the context of events and market inclinations that would get them from now until the next known known. And then they would deal with surprises by being disciplined with their trading levels and stops. They traded expectations and then attempted to avoid the event.