Off to the Races!

by Larry Levin


Well it didn't take much from the Fed to push these markets considerably higher. Ben Bernanke's right hand man decided he would buck the trend.

Lately the Federal Reserve members have been saying that the previous rate cuts would be enough. Here's the way it played out:

The market has been beaten down as of late. The market is having trouble putting together two consecutive positive day. And finally, we are at the lows for the year.

Well all you need to do is stir in a little Donald Kohn (who is the Federal Reserve's 2nd in command, right behind Uncle Ben.)

Remember everyone the Fed has more power to move these markets than any other information available.

And that is exactly what Mr. Kohn did when he stated:

"These uncertainties require flexible and pragmatic policy-making -- nimble is the adjective I used a few weeks ago."

and:

"The increased turbulence of recent weeks partly reversed some of the improvement in market functioning over the late part of September and October," Kohn said. "Should the elevated
turbulence persist, it would increase the possibility of further tightening in financial conditions for households and businesses."

and (this is the big one):

The vice chairman also said the housing sector continued to erode at a "very, very rapid pace" and he saw no signs of the market bottoming out.

So, think about it for a second, we've got one interesting situation! All of the above should be bad news, but because it means the Fed will probably cut rates again, it is good for the market!!!

What a world!!!

Real Time Trading Signals*for

Trade Date: 11/28/07

E-Mini S&P Trades*
(before fees and commissions):

9:08 FT BUy 49.00 = +.75, -1.00, -1.50

10:43 ENG Buy 57.25 = -1.00, -1.50

10:52 OTF Buy 56.50 = +.75, +4.25, +4.00

1:32 ID VA Buy 68.25 = +.75, b/e

2:26 FT Buy 71.50 = +.75, +2.75, +1.00


E-Mini Russell Trades*
(before fees and commissions):

1) Buy @ 9:00am at 758.3 = +.7 (1 lot)

2) Buy @ 9:03am at 759.0 = b/e (1 lot)

3) Buy @ 10:50am at 762.1 = +.5 & +.5

4) Sell @ 10:56am at 763.6 = +.8 (1 lot)

5) Sell @ 11:00am at 763.8 = -.8 & -.8

6) Buy @ 11:12am at 764.3 = +.5, +.7, +1.7

7) Buy @ 1:16pm at 770.3 = -1.0 & -1.0

8) Buy @ 2:32pm at 770.7 = +1.0 & b/e

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