Another Day, Another Move To Save The Financial System

Today we got the news that many in the markets have been waiting for. They have been waiting for what seems to be a very long time. That was the coordinated global rate cut by the central banks of the US, Canada, EU, England as well as a few other countries. EU rates have been to high and still remain that way even post cut.

As I discussed yesterday morning, we had an immediate strong move up in the stock futures, a quick and severe fade and several other moves all before the market opened. After that it was schizophrenic trading all day until the stock market indicators finally finished in the red for the nth day in a row. The end of the day move lower seemed to coincide with a speech being given by Bernanke.

As far as indicators of stock market volatility and fear go, the VIX ended at over 57, which is historically an extremely high number.

Post cut, the TED Spread also remained at an extremely high historical number of 3.75, ending the day at 3.57.

What is the message of the markets?

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