If Fed cuts only 25, what is best strategy?

Discussion in 'Trading' started by DataCruncher, Jan 30, 2008.

  1. I say buy puts on SPY and QQQQ but the implied volatility might be pumped up on them

  2. Depends if the market goes up or down. You are assuming it will go down. Again you are predicting like a fortune teller. Its called distorted thinking. Why cant you stay out of it for a day or two?
  3. I know people say to react rather than predict. But when you react, you are still reacting based upon your prediction about the probabilities unfolding.
  4. ElCubano


    but nothing has unfolded yet.....:D
  5. I think you need to read the statement, it's hugely important, not just assume 25 cut = this or 50 cut = that
  6. a .25 point cut will cause an immediate selloff but it won't be the end of the world. the market will be caring a lot about the fed's language.
  7. and is that bad?
  8. No it's not bad. But when people say "react, don't predict" I am trying to understand the nuances of exactly what they are saying. It seems to me that reacting and predicting are more similar than the statement implies.
  9. Relleum


    where is the best place to get access to the statement as fast as possible? I have interactive brokers, fidelity, and scottrade as my brokers, but I do not subscribe to any dedicated news streams.

    Oh, and is there a precise time in which the statement is released? I keep hearing "afternoon", but no specific time.

  10. In a pinch you can use CNBC as a last resort depending upon how fast you need to hear the statement. I heard cnbc has a 7 second delay in some geographical areas.
    #10     Jan 30, 2008