From the desk of Guy Geldworth:Bob Pisani of CNBC, who reports from the trading floor of the New York Stock Exchange, said of the plunging market 14 July: "It all began well, but in the end was disappointing because they (equity traders and futures traders) sold into the rally."
A little translation: The news prior to market opening had been that the government (that is you and I and our tax dollars) would infuse capital into the vaults of Fannie Mae and Freddie Mac (The giant U.S. Government-chartered corporations that purchase mortgages from lenders and re offer them to investors as mortgage-backed securities. Together, they hold 50% of the mortgage debt in the country.) That should have inspired buying which would have bolstered the two Fannies. It did, but only briefly.
More Pisani from his blog later: "What happened? Futures were up pre-open, we started strong...and then faded away. It is not a good sign that financials--the very group that was supposed to be helped by the Fannie/Freddie news--are flat to down."
Loyal to the economy, these market traders. "Selling into the rally tells us they expected the news of an up market in the beginning, then took their profits." Is this any way to run an economy? Do these people really care about the hundreds of thousands of Americans who need the help of Freddie Mac and Fannie Mae? "Selling into a rally" is just greed. It has nothing to do with empathy or even a hint of patriotism shown toward less fortunate fellow Americans. It's just selfishly taking advantage. A lot of unethical acts are legal. Not all "selling into rallies" is a bad thing. This one was. If you know someone who profited from selling into today's rally, point the finger.
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