Energulf Resources Inc. ENGFF

Stocks will Fall on the fed rate cut

[stargazer1]

If it's less than half a basis point, people will be disappointed and say that the Fed is not taking things seriously enough. If they cut the rate over half a basis point people will say that things must be worse than we realized. If they cut it half a basis point, the market has already taken that into account, and so with no more anticapitory buying to hold the market up it will fall. May writers are saying that we need a half point drop in the prime rate. That a quarter point won't be enough to stimulate the economy. But the present Fed chairman hates dropping the prime rate and so the cut will probably be only a quarter point and that will cut the legs out from under the market. All that being said, it has nothing to do with our stock. Sure ENG fell last week when the bottom fell out from under the market, but people associate our stock with a multi-billion dollar oil field, and one that we will soon be drilling. And so as stocks fall, many people will be looking for a stock with something solid and tangable behind, something which in the short term and long term, will give it the power to move up. And that is ENG. So even if the market tanks Thursday, we could not only buck the trend, but solidly move up.