FrankTheTank

I have noticed sometimes that when the fed. cuts rates as expected, equities actually fall. Is this the old "buy the rumor, sell the news" at work?

Thanks again to everyone. So in a nutshell: Higher then expected CPI = equities fall Lower then expcted CPI = equities rally

So the final piece of the puzzle (for me) is how does CPI report relate to interest rates?

Okay. One last question. I note that forex charts show the US Dollar losing strength with this lower then expected number. Typically, bad US numbers mean equities go down and the USD goes down. With this months CPI number, equities went up and the US dollar went down. The question is, why did the dollar take a hit with this report and are their any other news reports like CPI where the dollar will move in the opposite direction of equities? Thanks!

When you say "good" please clarify. According to Forex Factory I take this to mean numbers that are higher then expected are good for the US and numbers that are lower then expected are worse for the US. I am probably missing something.....

Sorry for my ignorance, but I noticed today that the CPI number came out worse then expected according (0.1 vs. 0.2). With other news reports, I noticed that dow futures usually go down with a "bad" number. Example, housing data comes out bad, market goes down. However, today equities shot up with a bad number? Is this because investors think the fed. will cut rates again? Does this mean a bad CPI report will ALWAYS create a rise in equities? Are there any other reports that act in this manner (which is conter-intuative at first) and why? Thanks for any help!

Thanks for everyones help. 1. I am looking to scalp economic reports out of the UK. Based on what is said here, it seems liquidity may be an issue and I would probably get into a trade at the top or bottom of any spikes which would not be good 2. Can US citizens trade these indices? I cant find them on Tradestation. Thanks!

Thank you. Do you know if TradeStation offers this? How liquid is the contract?

Sorry for the NOOB question, but, in the US we have the mini dow, NQ, ES, ER, etc. that are very correlated to the US economy and reflect the major market idexes. Does the UK (United Kingdom) have any futures contracts or something similar? I am familiar with the Br. Pound contract through CME but I was hoping to find something else. Thanks!