Bernanke's on Deck

by Larry Levin

Although today provided us better "action" than yesterday, it was still slow. Yesterday the market was sleeping soundly while today it slept restlessly - both providing many Z's. Mr. Market is waiting on Helicopter-Ben: will he defend the dollar or will he keep dropping dollars from his helicopter?

Most of the traders I have spoken to about tomorrow's FOMC decision believe it will do what Wall Street has been saying should happen (no surprises there), which is to cut another ¼-basis point and change it policy statement to suggest that rate cuts are over for the foreseeable future. Anything short of that will cause the Street to have a tantrum that could only rival a "Sweet 16" spoiled brat on MTV.

The Conference Board said its April consumer confidence index fell to 62.3 from a March reading that was revised upward to 65.9. Consumer confidence is at its lowest since March 2003.

The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder. Homes facing foreclosure have now jumped 112% this quarter compared to this time last year.

The S&P's/Case-Shiller Home Price index is setting records...of falling home prices. The index, which tracks home prices in 20 major cities, fell almost 13% in February from a year earlier. The report comes a day after the government said the number of vacant homes on the market also hit a record.

"Month-to-month, it gets consistently worse," said David Blitzer, chairman of the index committee at S&P, noting that February also marked the sixth straight month that all 20 cities experienced declines. "The slope is one direction. There is no sign of a bottom."

Real Time Trading Signals*for

Trade Date: 4/29/08

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



1) B/away sell @ 8:35am at 1394.50 = -1.75 (1 lot)

2) OTF sell @ 10:20am at 1390.50 = b/e (1 lot)

3) OTF buy @ 11:10am at 1389.75 = b/e & +2.50

4) OTF buy @ 1:10pm at 1393.25 = b/e (1 lot)

5) Algorithm trades (3)...combined total...+2.50

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

1) Sell @ 8:59am at 723.6 = +1.0 (1 lot)

2) Buy @ 2:20pm at 720.2 = -.9 (1 lot)

3) Sell @ 2:48pm at 720.2 = +1.0 (1 lot) ...+$110


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