Fed delivered what market wanted... 50 basis cut and markets yawned after a spike up. Infact markets closed down and blood red all over. This is really scary either way.
What it looks like is either a fake out and markets will rally tomorrow on for few days or rally is already done as $SPX and many other indices KISS touched the resistance and are ready to roll all over again. We will sure find that out pretty soon.
Very very tough to trade markets like they are lately. We have however, closed and cashed, our Rimm trades # 5 and 6.
2008 Project MERCEDES .. TRADE # 5: RIMM
Jan 25, 2008 10:46:36 RIMM Buy Feb 100 Call $ 2.40 .. 8 Contracts
Jan 30, 2008 15:59:51 RIMM Sell Feb 100 Call $ 2.91 .. 8 Contracts
Time: 6 Days
Return: 21.12 % or $408.00
2008 Project MERCEDES .. TRADE # 6: RIMM
Jan 25, 2008 15:39:25 RIMM Buy Mar 100 Call $ 6.20 .. 2 Contracts
Jan 30, 2008 15:59:51 RIMM Sell Mar 100 Call $ 6.90 .. 2 Contracts
Time: 6 Days
Return: 11.29 % or $140.00
Account Value: $ 6324.00
We have one position IACI open .. and let us refocus our energies on new market parameters due to unprecedented 125 basis cut in rates and that too in such a short time span of less then 10 days.
This additional cut of 50 basis today says the FED knows something that we are not yet privy to. And may be that is why market cud not sustain the after cut run up.
Let us stay awake and watch closely ... with ears and eyes wide open.
Good trading.
Harry
