WEDNESDAY IS A NEW DAY

By the looks of it, Wall Street expects the Fed to cut 50bps this week (2.15 EST on 1/30/08). Investors took the news of a big drop in new home sales as a sign that the Fed must lower interest rates again. But will they? And how big of a rally will we get if they do? It's hard to say...today's volume was ridiculously low and I fear that the market is going into Wednesday over bloated. Also, the markets have been up three of the last four trading days, and people don't seem to be as worried as they were last week...so there is a possibility that they may do nothing or just cut .25. No matter what they do this week, I'm hoping you all have cash on hand for the big news. As a trader, you should be ready to react and pounce on any given opportunities. If the markets drop I will look to short to hedge my long position in APP.

Here is what I did today, I said over the weekend that I had mixed feelings going into Monday, but I decided to look into SDS anyways seeing as the Asian markets were in ruin and the U.S. pre-market was negative. I bought SDS in the morning...I got kinda worried 30 minutes into the opening so I decided to set a sell stop just incase the market decided to swing the other way as it has been doing for the past month.