Discussion in 'Trading' started by increasenow, Oct 30, 2007.
what the hell is FOCM?
Arnie , couldnt agree more. The quarter point cut is priced in fully. Equities , energy, and metals are all up while the dollar has been further trashed. The rate cut is priced into these asset classes and so i am looking for all to crack in the short-medium term. Who is left to buy?
FOMC = The Federal Open Market Committee (FOMC) decision on interest rates is one of the most powerful market movers in the forex market and when the markets move traders trading the news have the opportunity to make money.
Sounds great. Have you BACKTESTED your idea. Do you KNOW how the market has reacted to other Fed actions that were "priced fully." I'm not trying to bust your balls but I can think of TEN times where the Fed did what was expected and the market STILL made the move it also was expected to make.
I give you kudo's for at least understanding counter-intuitive thinking but often it's the wise guy who's the fade.
P.S. The policy statement will tell all.
after all the hoopla to the upside, it does a slow burn to the downside. The big guys have all had several weeks to prepare for this. Got to clean this thing out more than a couple %.
Uncle Ben can't let the market down. He is too scared about Cramer foaming at the mouth again. Raises 25 BP. Modest rally.
buy put and call of GS..
anything happens GS goes $10 higher or $10 lower...
Sorry, Should read lowers 25 BP.
A 25 base points cut is money in the bag and fully priced in
I would play volatility as such, I cant recall the last time this consensus was incorrect.
Im truly interested to see what happens tomorrow. This is one of the few times that I think there's possibilities of either extreme (no cut or 50bps).
It's a true coin flip tomorrow and one that's going to move the markets.
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