Fed Meeting Tomorrow
August 4, 2008 10:18 PM
Tomorrow is likely to be lackluster until the Fed announces their decision. As a general rule of thumb, it is best to avoid Fed days as it may get very volatile after and difficult to trade. It is difficult to say what will happen if they do indeed hike. My initial reaction would be the market would get crushed, but I am not so sure. i think the market wants a hike here to possibly reign in inflation, to some degree. The reality is if they hike, it is a mixed bag. The economy “could” get far worse if they begin hiking, but it could bring down oil and commodities enough to offset the hike, or more. I am just not sure how the market will react.
The bottom line is this - you will have to wait and see how the market reacts. Some market theorist said long ago, and is completely correct, that market news does not drive the markets, human reactions to the news does. Basically, it is how people collectively perceive things, i.e. supply and demand. Rate hikes will clearly pressure the financials, long term, but a .25 move would likely not do much damage, in reality. This is all about a signal at this point.
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Our Mascot Trading Goal: Ferrari 599
iIbought lcc at 2.50 put in 50 grand. I have more than doubled my money in a short time. My usual betting theory is to get out when i double …at least thats how it works in vegas. The so called experts say hold. What do you think. Should i take out my initial investment and let the rest ride . This would be alot easier if it was monopoly and not real money. Let me know what you think.
I dont give advice on what people should do, I just comment on what i see. People have to decide for themselves on what they see…but glad you made a ton, happy for you.
i think i’ll take out 75 grand and let the rest ride.