Fed cuts discount rate by 50 basis point.

[one_muggle]

FSD,

Not surprised they did it, but surprised they did it almost immediately after saying they would only do it in the event of a calamity (Poole I think).
The change of direction was expected, but the magnitude of the delta-V was not.

-one muggle

[anxvariety]

Bit of turmoil here….Do I sell my shorts or risk taking a bath…

When did you buy them? If options when do they expire? I have cut my losses a few times on far out puts and I usually end up wishing I hadn’t. Is the rate cut going to help CFC in the big picture?? I don’t see it.. I’m going to load up on more Jan 08’s if this thing makes another run.

[anxvariety]

Bit of turmoil here….Do I sell my shorts or risk taking a bath…

When did you buy them? If options when do they expire? I have cut my losses a few times on far out puts and I usually end up wishing I hadn’t. Is the rate cut going to help CFC in the big picture?? I don’t see it.. I’m going to load up on more Jan 08’s if this thing makes another run.

[anxvariety]

Bit of turmoil here….Do I sell my shorts or risk taking a bath…

When did you buy them? If options when do they expire? I have cut my losses a few times on far out puts and I usually end up wishing I hadn’t. Is the rate cut going to help CFC in the big picture?? I don’t see it.. I’m going to load up on more Jan 08’s if this thing makes another run.

[no_such_reality]

Volatility will return when Tuesday morning Hurricane Dean rolls into the Gulf of Mexico and puts a pending bullseye on the Texas and Louisana oil industry roiling gas and oil prices.

[no_such_reality]

Volatility will return when Tuesday morning Hurricane Dean rolls into the Gulf of Mexico and puts a pending bullseye on the Texas and Louisana oil industry roiling gas and oil prices.

[no_such_reality]

Volatility will return when Tuesday morning Hurricane Dean rolls into the Gulf of Mexico and puts a pending bullseye on the Texas and Louisana oil industry roiling gas and oil prices.

[Chris Scoreboard Johnston]

no squeeze yet only up 150, but there are so many shorts out there ripe for the picking, if momentum does happen to pick up on the upside, you will see a moon shot higher when everyone scrambles to cover. I think it will happen if we take out the early morning high for the day today in the S&P, if not we may just go sideways up 150. Expirations are playing a role in intraday action today.

Impossible to know if the low is in, probably not. The problems still exist and the trend is down. I was just trying to warn everyone to sell strength not weakness in this enironment. In my 20+ years as a trader, I have never seen volatility like what took place this am between 4:30 and 6:30. My S&P futures trade exited on todays opening made 80 points in one day, unheard of!

Even you bears do not want the financial system to stop working, it would be a economic wipeout, and the Fed is now realizing that possibility exists.

[Chris Scoreboard Johnston]

no squeeze yet only up 150, but there are so many shorts out there ripe for the picking, if momentum does happen to pick up on the upside, you will see a moon shot higher when everyone scrambles to cover. I think it will happen if we take out the early morning high for the day today in the S&P, if not we may just go sideways up 150. Expirations are playing a role in intraday action today.

Impossible to know if the low is in, probably not. The problems still exist and the trend is down. I was just trying to warn everyone to sell strength not weakness in this enironment. In my 20+ years as a trader, I have never seen volatility like what took place this am between 4:30 and 6:30. My S&P futures trade exited on todays opening made 80 points in one day, unheard of!

Even you bears do not want the financial system to stop working, it would be a economic wipeout, and the Fed is now realizing that possibility exists.

[Chris Scoreboard Johnston]

no squeeze yet only up 150, but there are so many shorts out there ripe for the picking, if momentum does happen to pick up on the upside, you will see a moon shot higher when everyone scrambles to cover. I think it will happen if we take out the early morning high for the day today in the S&P, if not we may just go sideways up 150. Expirations are playing a role in intraday action today.

Impossible to know if the low is in, probably not. The problems still exist and the trend is down. I was just trying to warn everyone to sell strength not weakness in this enironment. In my 20+ years as a trader, I have never seen volatility like what took place this am between 4:30 and 6:30. My S&P futures trade exited on todays opening made 80 points in one day, unheard of!

Even you bears do not want the financial system to stop working, it would be a economic wipeout, and the Fed is now realizing that possibility exists.

[one_muggle]

nsr,

Dean sure is going to be an ugly one for the area:
http://www.accuweather.com/news-top-headline.asp?partner=accuweather&traveler=0

But don’t you think the traders have already factored that in? Because if you think they haven’t, first short them, then when it hits the fan, fire them!
Really, if Dean gets bigger than expected things would get really interesting, but unlike Katrina the Gulf isn’t unusually warm so far this year.
Given Katrina, I would guess (and only guess) that the risk is overreaction, rather than under.

-one muggle

[one_muggle]

nsr,

Dean sure is going to be an ugly one for the area:
http://www.accuweather.com/news-top-headline.asp?partner=accuweather&traveler=0

But don’t you think the traders have already factored that in? Because if you think they haven’t, first short them, then when it hits the fan, fire them!
Really, if Dean gets bigger than expected things would get really interesting, but unlike Katrina the Gulf isn’t unusually warm so far this year.
Given Katrina, I would guess (and only guess) that the risk is overreaction, rather than under.

-one muggle

[one_muggle]

nsr,

Dean sure is going to be an ugly one for the area:
http://www.accuweather.com/news-top-headline.asp?partner=accuweather&traveler=0

But don’t you think the traders have already factored that in? Because if you think they haven’t, first short them, then when it hits the fan, fire them!
Really, if Dean gets bigger than expected things would get really interesting, but unlike Katrina the Gulf isn’t unusually warm so far this year.
Given Katrina, I would guess (and only guess) that the risk is overreaction, rather than under.

-one muggle

[donaldduckmoore]

I don’t think it is necessarily a bad thing to lower interest rate of this category as long as the FED won’t keep on cutting other rates. This action is only helping banks borrowing money. Overall, it does not lax the already tightened mortgage market. IT is to stablise the financial market. I don’t really see there is any long-term beneficial effect to the already deteriorating housing market.

[donaldduckmoore]

I don’t think it is necessarily a bad thing to lower interest rate of this category as long as the FED won’t keep on cutting other rates. This action is only helping banks borrowing money. Overall, it does not lax the already tightened mortgage market. IT is to stablise the financial market. I don’t really see there is any long-term beneficial effect to the already deteriorating housing market.

[Author]

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