Come oooooon - SEVEN!

by Larry Levin

I could hear it all day today, "OK everybody, new shooter comin' out." Then the constant/jubilant call came across the table, "Come ooooon - SEVEN!"

Today's investors seemed to be betting big on the FOMC decision today, regardless of the horrendous housing data this morning. Stocks closed near their highs, with financials leading the way. Of course, another rate cut will lower borrowing costs and pad banker's profit margins, which is the logic behind the bottom feeding in that sector.

In an attempt to lure buyers back to the table, builders across the U.S. slashed prices by 10%...yet sales still fell 4.7%! "Experts" were expecting a flat to slightly higher reading. When the dice were handed to the "experts," it’s safe to say they rolled craps...again.

December's sales pace was down 40.7% compared with December 2006. Combined, sales of new and existing homes fell 24.6% in December compared with a year earlier, the biggest year-over-year decline since 1982. And if that wasn't bad enough, the median sales price reportedly tumbled a record 10.9%. It marked the biggest year-over-year drop in the median sales price since 1970.

But Wall Street ignored all of this terrible news in anticipation of Ben Bernanke & Co doing what they are told: Cut rates again – period.

Real Time Trading Signals*for

Trade Date: 1/28/08

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


8:36 VA Buy 9.50 = -1.50 all

8:42 VA Sell 29.25 = -1.50 all

9:21 VA Sell 29.00 = +.75, -1.50

9:24 ID VA Buy 32.00 = 1.50 all

10:40 FT Buy 44.00 = -.75 all

11:01 OTF Buy 40.75 = +.75, +2.00, b/e

11:24 ENG Buy 38.75 = +.75, +.25, +.25

12:28 FT Buy 46.00 = +.75, +.25, +.25

1:50 OTF Buy 45.25 = +.75, b/e

2:11 ENG BUy 45.00 = -1.75 all

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


1) Buy @ 8:37am at 686.0 = -1.1 (1 lot)

2) Buy @ 8:57am at 686.2 = -1.2 & -1.2

3) Sell @ 9:15am at 684.9 = +.6 (1 lot)

4) Buy @ 9:26am at 686.1 = +2.9 (1 lot)

5) Buy @ 9:32am at 688.0 = -1.3 (1 lot)

6) Buy @ 9:44am at 688.5 = +3.5 (1 lot)

7) Buy @ 10:47am at 696.0 = -.8 (1 lot)

8) Sell @ 11:21am at 694.7 = -1.3 (1 lot)

9) Buy @ 1:16pm at 700.1 = -1.1 & -1.1

10) Buy @ 1:51pm at 700.4 = +.5 & -1.0

11) Sell @ 2:03pm at 699.0 = -.7 (1 lot)

12) Sell @ 2:05pm at 700.2 = +1.7 (1 lot)

13) Sell @ 2:17pm at 697.2 = +.5 & b/e…-$90.00


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