Louetta's Lore

[JohnHenry]

My father is interested in the markets and I started messing with it and so a friend of his got me a summer internship at an investment house in Boston and I liked it so I thought I might like to try it as a career.

Hi louetta

I bet you learned a lot from working there. How do you like it as a career? What did you major in college? How did get the title as queen of IBD? Sorry for all the questions, if I knew the answer I wouldn’t be asking.

[IIC]

My father is interested in the markets and I started messing with it and so a friend of his got me a summer internship at an investment house in Boston and I liked it so I thought I might like to try it as a career.

What kind of company was it?...what did you do there?...Doug(IIC)

[Louetta]

Hi louetta

I bet you learned a lot from working there. How do you like it as a career? What did you major in college? How did get the title as queen of IBD? Sorry for all the questions, if I knew the answer I wouldn’t be asking.

I enjoy it as long as I don't have to sell, which I don't. I was an English major as an under grad, eco starting grad school in Sept. Far as I know the title was granted me by Mr. Market, a fellow Mass. resident (at least at one time).

[Louetta]

What kind of company was it?...what did you do there?...Doug(IIC)

General investment management, mutual funds, private investment management, some traders running the firm's money on their own. I did basic research, a lot of automated model running, go-fer stuff.

[IIC]

General investment management, mutual funds, private investment management, some traders running the firm's money on their own. I did basic research, a lot of automated model running, go-fer stuff.

Well...thanks for finally acknowledging that I exist...That's all I was asking for...Good that you got to work there...Get to see first hand the good, bad and the ugly I suppose.

I remember that you said you were more of a longer termer...perhaps intermediate term???...which I call 1 to 6 mos...I'm more interested in DT's and Swings but I do have some that are longer...although those are not settin' any records this year.

Good to have you onboard...you'll find all different types here...Sift thru the garbage(many of my posts included) and I think you'll find that membership is mutually beneficial for those that participate...Best...Doug(IIC)

[Websman]

No rate hike. I think the time to start buying Poorman's picks is here. What do you think Louetta???

[Louetta]

No rate hike. I think the time to start buying Poorman's picks is here. What do you think Louetta???

You may be right. I'm going to wait though. Might be hard to articulate why. Interest rates are down some, their being up above 5% was one reason I got out, so that's bullish. Oil prices are up which isn't so good. Its second week in August and I'm a firm believer in sell in May and go away til Labor Day when everybody seems to sell some more (didn't they sell in May?) I guess I'd like to see something happen first. Volume is usually weak in August but they say never short a dull market but I'm not sure that means you should buy. I didn't like today's action. Why sell when they finally did what everybody wanted (pause)? When people sell on what should be bullish news it makes me nervous. Anyway old Joe Kennedy supposedly said its not god to hang around for the last ten per cent. By extension its probably not good to try to grab the first ten per cent either. So out of that confused mish-mash I'm going to wait.

[Rob]

I didn't like today's action. Why sell when they finally did what everybody wanted (pause)?

For the simple reason that all the buying had been done in anticipation of the pause, so that once the pause was confirmed, there was no one left to do any more buying—but they'll be back.

[skiracer]

For the simple reason that all the buying had been done in anticipation of the pause, so that once the pause was confirmed, there was no one left to do any more buying—but they'll be back.

That spike up after the Fed's announcement was retail investors and their exhuberance that the Fed didn't raise the rate. The real strength came in 1/2 hr. before the closing bell with the selloff that pushed the closing price into negative territory. There is some hidden agenda yet to be seen behind that selloff. Like the institutional money was looking for something else or knows something else.

[DSteckler]

That spike up after the Fed's announcement was retail investors and their exhuberance that the Fed didn't raise the rate.

Yeah, that was it...millions of retail investors were sitting around at work waiting for the Fed announcement, then simultaneously they all called their brokers or logged on and started buying. LOL!

[skiracer]

Yeah, that was it...millions of retail investors were sitting around at work waiting for the Fed announcement, then simultaneously they all called their brokers or logged on and started buying. LOL!

Perhaps I should have worded it a little different Dave. I do believe that many retail guys were holding off until they saw what the Fed was going to do. After the announcement there was a pretty big spike up but in the last 1/2 to 1 hr. of trading that selloff was pretty strong. Just my take on it. But yeah you could be right about millions of retail guys just sitting by their screens waiting to jump into the fray.
Did you have any thoughts on what could have prompted that selloff coming into the close yesterday?

[DSteckler]

The selloff had nothing to do with retail investors, Ski.

Hedge funds closed short futures when the Fed announced, which kicked in the buy programs. Later that afternoon the hedge funds opened new short positions, kicking in the sell programs, so they could finish profitably closing out short stock positions. You notice where the futures are this morning? Way, way up.

[skiracer]

The selloff had nothing to do with retail investors, Ski.

Hedge funds closed short futures when the Fed announced, which kicked in the buy programs. Later that afternoon the hedge funds opened new short positions, kicking in the sell programs, so they could finish profitably closing out short stock positions. You notice where the futures are this morning? Way, way up.

I'll buy that explanation Dave. Whatever instruments they opened and closed was enough to drive the markets into the negative at the close. I like your take much better than mine being that it would take much more than retail trading to drive the markets like what took place yesterday afternoon. Futures way up this morning on great CSCO report after hours yesterday to give tech sectos a much needed boost.

[Louetta]

For the simple reason that all the buying had been done in anticipation of the pause, so that once the pause was confirmed, there was no one left to do any more buying—but they'll be back.

You state the obvious with great clarity. Now...all we need do is figure out WHEN they'll be back.

[DSteckler]

Now...all we need do is figure out WHEN they'll be back.

Are you trading individual stocks or broad market indexes? If the former, when "they'll" be back is irrelevant - trade the stock, not the market. It's highly relevant, however, if you're trading the broad market.