Pre-open (2):
Aug. 17 (Bloomberg) -- The Federal Reserve, in an unscheduled meeting, cut the discount rate to 5.75 percent from 6.25 percent, noting market conditions have deteriorated since it last met Aug. 7.
``Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward, '' the central bank's Federal Open Market Committee said in a statement. ``The downside risks have increased appreciably.''
The FOMC left the overnight federal funds target rate unchanged at 5.25 percent.
Huge initial jump with ES hitting 1470, its 20 dma and pulling back sharply from that level. After the first reaction, we could get some worries, but this news should put in a floor for now. Hogs get slaughered and shorts that were pushing too hard (or dreaming of Armageddon) are getting squeezed. What else is new. We just saw buy signals yesterday and ignored the noise. Use this rally to raise your stops and book profits. Take the money and run. Do not take anything for granted, this is still op-ex. ES 1470 and YM 13261 should be resistance.
Aug. 17 (Bloomberg) -- The Federal Reserve, in an unscheduled meeting, cut the discount rate to 5.75 percent from 6.25 percent, noting market conditions have deteriorated since it last met Aug. 7.
``Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward, '' the central bank's Federal Open Market Committee said in a statement. ``The downside risks have increased appreciably.''
The FOMC left the overnight federal funds target rate unchanged at 5.25 percent.
Huge initial jump with ES hitting 1470, its 20 dma and pulling back sharply from that level. After the first reaction, we could get some worries, but this news should put in a floor for now. Hogs get slaughered and shorts that were pushing too hard (or dreaming of Armageddon) are getting squeezed. What else is new. We just saw buy signals yesterday and ignored the noise. Use this rally to raise your stops and book profits. Take the money and run. Do not take anything for granted, this is still op-ex. ES 1470 and YM 13261 should be resistance.
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on Friday, August 17, 2007 at 8/17/2007 08:22:00 AM.
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