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!


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