Thursday, November 01, 2007

Fed announced a rate cut of 25 basis pt

Fed announced a rate cut of 25 basis points earlier this morning at 2:15 am (our time).

Ben mentioned that further rate cuts might not be in store as he feels that the risk of inflation is about equal to the risk of economic recession. Like he really knows what he is saying like that. In my opinion, another rate cut by end of this year is a possibility that cannot be ignored.

Short term fix, longer term trouble, everyone knows that. But in the wild dance along with the market, rationality is thrown away most of the time.

All the world's a stage,
And all the men and women merely players:
They have their exits and their entrances;
And one man in his time plays many parts,

To borrow from shakespeare, what will your part be this time?

Dow was up 137 pts (1% up), Nasdaq was up 42 pts (1.51%) and S&P500 was up 18 pts (1.20%). I think STI will be up by 1% (38 pts thereabout?) to show some face to big brother :) Have a great day trading breakout! I'm away till night, no way to monitor the market at all, haha