The markets are getting used to 2%-3% moves each day and you will realise that what used to be wide range in the past is now considered the norm. Just take a look at the recent bars on the major indices. Wow...and as for the news about The Bear Stearns Companies Inc.(Public, NYSE:BSC), I was dumbfounded. I think its a ridiculous buy-out price. I had expected a buy-out announcement on Monday, between $20-$30. I have never imagined it to be on fire sale, at $2!
As I'm writing now, we're waiting for the Fed policy statement in about half an hour's time. Fed funds futures now priced in a 96% probability of a 100 bp cut, with a 75 bp cut fully priced in. The markets have been trending up so far since the gap up this morning on better than expected earnings results from Lehman Brothers (NYSE: LEH) and Goldman Sachs (NYSE: GS). I wonder if it can have another leg up after the announcement as it looks quite extended on an intraday basis. Major indices are up between 2.5%-3% as of now. Can Uncle Ben gives the market what it wants? Mon: NY Empire State Index, Capacity Utilization, Industrial Production Notable earnings: BSC