Waiting on the Fed!

by Larry Levin


Every day we get closer and closer to the big day, Fed Day! This market wants a fifty basis cut badly and anything short of that will almost asuredly bring sellers into the market.

So each day you can almost feel the anticpation building on the trading floor. The volatility has slowed down a little bit lately and I would like to see it come back real soon!

I've even heard some traders talking about the (slight) possibility of a Fed cut of more than 50 cents. Now that is a big longshot, but the market would absolutely explode with volatility. And that is something I love.

But the big money bet is definitely on a 50 cent cut on the rate, anything short of that will push us back to the lows!

Real Time Trading Signals*for

Trade Date: 12/3/07

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

10:01 OTF Buy 67.25 = +.75, +1.50, +1.50

12:11 FT Buy 70.25 = -1.75 all

1:20 FT Sell 67.75 = +.75, +.75, b/e

1:59 ID VA Sell 70.00 = +.75 all

2:25 ID VA Buy 69.50 = -1.75 all

E-Mini Russell Trades*
(before fees and commissions):
1) Buy @ 10:17am at 755.1 = +.5 & b/e

2) Sell @ 10:52am at 754.2 = +.5, +1.0, b/e

3) Sell @ 12:57pm at 755.9 = b/e (1 lot)

4) Sell @ 1:12pm at 754.4 = +.5 (1 lot)

5) Sell @ 1:15pm at 754.4 = b/e, b/e, b/e

6) Sell @ 1:51pm at 755.8 = +.7 (1 lot)

7) Sell @ 1:57pm at 756.1 = +.2 & +.5

8) Buy @ 2:14pm at 755.6 = +.5 & +1.4

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