Boiler Room: The Official Stock Market Discussion

BlaxOps

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MiYaYo (Carol City)
I asked ChatGPT: Why does the stock market drop when the funds rate drops

When the Federal Reserve lowers the funds rate, it generally aims to stimulate economic growth by making borrowing cheaper. While this often boosts the economy and can lead to stock market gains, there are situations where a drop in the funds rate may cause the stock market to decline. Here are a few key reasons:

1. Economic Concerns

  • A cut in the funds rate may signal that the Federal Reserve is worried about the health of the economy. If investors believe that the rate cut is in response to economic weakness, they might sell off stocks due to fears of a slowdown, recession, or declining corporate profits.

2. Expectation vs. Reality

  • Sometimes, the market reacts negatively to a rate cut if investors had expected an even larger cut or a more aggressive response from the Fed. If the actual cut doesn't meet market expectations, it can cause disappointment and lead to a stock sell-off.

3. Market Overvaluation

  • Lower interest rates can inflate stock prices as investors move away from bonds and other safer investments toward stocks in search of higher returns. If the market is already overvalued, a rate cut may raise concerns about unsustainable price levels, prompting a correction.

4. Profit Margins and Inflation

  • While lower rates reduce borrowing costs, they can also stoke inflation fears. If investors believe that inflation will rise too quickly, they may worry that companies’ profit margins will shrink due to rising costs, which could lead to a drop in stock prices.

5. Bond Market Competition

  • Lower rates make bonds less attractive because their yields decline. However, in certain cases, the bond market can still be seen as a safer haven compared to stocks, especially in times of economic uncertainty. If investors fear a prolonged downturn, they might prefer the stability of bonds, even with lower yields, which can lead to stock market declines.
In summary, while a funds rate drop is often intended to boost the economy, it can also trigger concerns about underlying economic conditions or market dynamics, causing stock prices to fall.
 

Still Benefited

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Think im going to have to get out of Robinhood for swing trading. But not being able to sell certain tax lots is a no no. Ill probably think about it. Maybe im thinking about how important it is for me in long term positions. But i need to be cutting and running with this swing account anyway. I dont need to keep averaging down as levels break. But i do scale into positions somtimes,and I may want to sell a specefic lot if the trade doesnt bounce immediately. Even if its not neccessarily a losing trade yet.


WU,SLI on my buy list. Will sell SLI if it breaks below 1.08. WU if it breaks under 11.74. Wont try again unless it hits 1.09. Also currently in BOLD. Waiting to buy more ETH at $1990. Average cost 2800 right now.:respect:
 

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Anybody else use text alerts? These phone text alerts actually allow me to catch some trades while im at work. Ive pulled my phone out while people were mid sentence and said "sorry,I have to answer this:wow:"
 
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FabTrey

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Hope yall been banking lately. :takedat:

My big loss was RKLB which was stopped out unfortunately. other than that, I've been maintaining 80% accuracy. I'm still eating small, but i'm ok with that.

Check out TNON and what happened last Friday. it was truly a unicorn. one day, ima catch one of these mofos. :ohlawd:


here are some of my watch list tomorrow.

APLD - looking for 6.6 break for a range up to 7.7.

PLCE - Either break out over friday's high or dips to 12.

SMX - if it stays above VWAP, then the range is 7-8.5

DJT - Trump stock. I don't discriminate when it comes to trading. with another 'assassination' attempt news, this could pop either way. it all depends on how people interpret this news. I'll watch either direction. I'm hoping it breaks Friday's high this week. I'll jump in then.

I'm a volume hunter. No volume, no trade. If these gets volume then count me in.

For those who want lotto - 10/18 TSLA $300 call. I'll look to buy this week. hope it dips massively and stay under 1.5. i don't like calls over 1.5
 

Tunez

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Southside, 2gz Up

Microsoft Announces $60 Billion Buyback, 10% Dividend Hike​



https://www.msn.com/en-us/money/ to...nd-hike/ar-AA1qGc1F?ocid=finance-verthp-feeds
 

Still Benefited

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FSLY on a tear,had to cash out at 7.40. Lets see if i live to regret it:wow:


Been holding MVST a while,got in at .38 but it went down to about .20. Didnt average down but held,we back in business:whoo:
 

KING WILL

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****Long Palantir Post from PLTR Employee****


I then proceeded to give them a demo of $PLTR AIP/Foundry. The CAIO responded, “So you are more like a whole cloud. How are you different from the cloud providers?” I answered, “We have a fully integrated toolchain that works seamlessly together, a tool factory. With cloud providers, you still have to stitch things together, and security models vary.

The only thing you get is a single bill, not a single ecosystem. The same problems exist with buying a slew of SaaS systems, minus the single bill. You end up spending so much time dealing with the friction of tools, even within a single cloud provider, instead of adding value.” Their response was, “Yeah, no one tells you how fragmented these cloud provider tools are within their own cloud. It’s such a huge misconception and a hard truth most people don’t know.

We spend so much time and resources doing this instead of adding value.” I replied, “I know it sounds like black magic, but our connected toolchain has a single secure model that works natively across the entire suite of 50+ applications in the platform. The focus is on building valuable things, not IT integrations within a single cloud. Let us show you in a
@PalantirTech
bootcamp how real it is.”







 

KING WILL

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Are any of yall familiar with Super Cloud Computing, or Sky Computing?



Sky computing is a new model for cloud computing that combines multiple cloud providers' resources into a single, interoperable network. It's seen as the next step in the evolution of cloud computing
 
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