{"id":25693,"date":"2011-11-30T22:08:45","date_gmt":"2011-12-01T03:08:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/11\/30\/how-you-can-profit-from-central-bank-intervention\/"},"modified":"2011-11-30T22:08:45","modified_gmt":"2011-12-01T03:08:45","slug":"how-you-can-profit-from-central-bank-intervention","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/11\/30\/how-you-can-profit-from-central-bank-intervention\/","title":{"rendered":"How You Can Profit from Central Bank Intervention"},"content":{"rendered":"

By MoneyMorning.com.au<\/strong><\/p>\n

<\/p>\n

The TARP Effect<\/div>\n

<\/strong><\/p>\n

We asked Slipstream Trader<\/a><\/em>, Murray Dawes what he thought of the central bank intervention<\/strong>. We wanted to know what these big up-days mean for traders and the market.<\/p>\n

<\/span><\/p>\n

He told us:<\/p>\n

“How long this intervention rally lasts is anyone’s guess. But they now also have the Santa rally seasonal traders on their side. Add that to a few better-than-expected economic numbers out of the States, it has the short sellers running scared. And that could see the market head higher. Perhaps this will be a TARP 1 re-enactment and the market will nose dive again within the week, but I can’t be sure. If there’s one thing to take out of this it is that the situation was obviously worse than anyone knew.”<\/em><\/p>\n

But in typical Murray style, he’s not sitting… or watching… or waiting. He’s trading.<\/p>\n

On Monday Murray sent out an alert to buy a stock. This morning it’s up more than 3%.<\/p>\n

Today he saw the chance to short sell a different stock, betting on the market falling after the initial rally.<\/p>\n

But whatever happens, Murray’s right. If the market was fine… and the banks were safe… there would be no need for six central banks to intervene in the market.<\/p>\n

If anything, the central bank intervention confirms what we already know: the world economy is in deep trouble. And central banks will do anything they can to stop markets falling.<\/p>\n

As an investor that gives you plenty of chances to take a punt and potentially benefit from central bank manipulation – such as the trades recommended by Murray.<\/p>\n

But the most important thing to remember is that while central bank fiddling may give you the chance to punt the market for profits, it isn’t the answer to a sustainable economic recovery.<\/p>\n

It’s a short term fix… and it won’t work.<\/p>\n

If anything, we’d say you should use today to sell blue-chip growth stocks<\/a> you may still own. Because odds are, these big gains will have gone by the end of next week.<\/p>\n

Cheers.
\nKris.<\/strong><\/p>\n

P.S.<\/strong> Don’t forget to check Murray’s latest stock market update <\/a> on YouTube.<\/p>\n

Related Articles<\/em><\/strong><\/p>\n

Why the Fed’s Actions Make Perfect Sense<\/a><\/p>\n

Too Big to Bail<\/a><\/p>\n

Swiss National Bank Intervenes…<\/a><\/p>\n

Bailouts Still Boosting the Market<\/a><\/p>\n

Was This Just Another Rigged Market?<\/a><\/p>\n

From the Archives…<\/em><\/strong><\/p>\n

Stock Market Predictions<\/a>
\n2011-11-25 – Kris Sayce<\/p>\n

Stocks on the Australian Market Today – Three Things You Need to Know<\/a>
\n2011-11-24 – Shae Smith<\/p>\n

The Gospel of Gold and Silver<\/a>
\n2011-11-23 – Kris Sayce<\/p>\n

China’s Bubble Will Pop in 2012<\/a>
\n2011-11-22 – Greg Canavan<\/p>\n

ASX Stock Market Winners, Losers and the Newly Dumped<\/a>
\n2011-11-21 – Aaron Tyrrell<\/p>\n

For editorial enquiries and feedback, email moneymorning@moneymorning.com.au<\/a> <\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nHow You Can Profit from Central Bank Intervention <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au The TARP Effect We asked Slipstream Trader, Murray Dawes what he thought of the central bank intervention. We wanted to know what these big up-days mean for traders and the market. He told us: “How long this intervention rally lasts is anyone’s guess. But they now also have the Santa rally seasonal traders … <\/p>\n

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