Tuesday, January 22, 2008

Fed Slashes Rate by 75 Basis Points

Fed Slashed Rates by 75 Basis Points in a "suprise" move before the FOMC meeting.

The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, cut a key interest rate by three-quarters of a percentage point on Tuesday. The Fed said it was cutting the federal funds rate, the interest that banks charge each other on overnight loans, to 3.5 percent, down by three-fourths of a percentage point from 4.25 percent
Wow....to see how suprised I was see my last post.

I was working this morning, but luckily my work day in uruguay starts three hours before the market opens.

During a break in the action I took a lunch break and traded (small) on my convictions and made (a little) coin.

I went long on SSO (canadian silver mining stock) at 30 and change and after it went up a couple of points dumped it. of course, it has continued to go up since i dumped it but i didn't have time to watch it today (and didn't even know at the time that BB had dropped the rate - or announced a press conference - or however he telegraphed this).

I dropped my sds (s&p double short) which bets the s&p will fall at the gap down on the open.
BUT, like i said in my previous posting i'm looking for a chance to reenter that trade - asap. This is just one of those markets I don't like being "not short" :)

Ok...lunch break is almost over and it's time to get back to my day job. The traders have to be loving this volatility....especially when it's so friggin' predictable!


I love the smell of a bailout in the morning....

....it smells like......inflation!

for anyone who wasn't watching the markets this last week and especially over the 3 day holiday in the US....

aoooga a ooooo ga....DIVE! DIVE!

utter pandamonium it seems.

the reality is that given the magnitude of the runup, to be down 20% in hong kong, shanghai, or mubai is really not that big of a deal.

however, the magnitude of the decline in the EU got my attention.

and, with the "bailout" proposal being bantied about by bernanke/bush/paulson/congress/2008 candidates getting very little play from the markets i suspect that the heavy guns will come out on tuesday a.m. in the US markets.

what does that mean?

one of two things:

1.) "plunge protection team" interference in the futures market and maybe the market for securities themselves. if you don't know what the plunge protection team is google it or the working group on markets.....you don't need a tinfoil hat anymore to suspect that the markets are manipulated by government forces. everyone pretty much admits it these days.

2,) the market will be allowed to 'gap down' and run for an hour or two and then bernanke will announce a "suprise" early cut to the interest rates, the market will spike up and create a massive short squeeze rally.

...sigh....the kind of volatility that's promised tomorrow almost makes me want to buckle up and jump in for a frenetic day of trading.

however tempting the promise of making and/or losing my annual salary on a days worth of bets is not enough to get me back in the saddle tomorrow. i have a "day job" that demands my attention -- so i'll have to stay content to sit in my longer term holds and let the currents push me where they may.


Sunday, January 06, 2008

Hillary (O)bomb(a)s in Iowa


My fat mouth *may* have finally caught up with me. Obama cleaned Hillary's clock in Iowa -- jeez even that populist farce Edwards beat her out.

Well, rather that get all hopeful that Americans have wised up to the ways of the Clintons, or put much stock in a few thousand farmers, I'm going to wait until a few more states have finished their primaries.

If you'll remember, fuBarrio made 'drunken proclamation' (too lazy to find the post) where I bet me "life" Hillary would find a way to subvert the Democratic process and get herself nominated.....In a more sober moment later, I decided that I would stop bloggin under the fuBarrio nameplate forever if Edwards or Obama were able to nudge her out.

...who knows....it's definately looking more likely this week than last. But I don't want to get too excited yet....

Now, what'll really be interesting to watch in NH (other than the dems) will be Ron Paul's support and whether or not the mainstream media acknowledges it or not.