Day 18
Situation:
U.S. Markets: Markets sold off big time after the FED decision to cut rates each by 25bps … Nasdaq best performer with 2,4% loss, the Russell lost 3,7% …
So, America followed the Dax, rebreaking the downtrends.
But … reading the statement and trying to make sense of it …
isn’t it positive, that the FED is not more concerned by the situation and therefore kept more “firepower” back? Isn’t it good, that they seem to be aware of the situation by not repeating their statement that risks for lower growth and risk of higher inflation are balanced … and so letting the door open for further cuts?
Whoever bought stocks on hopes of a higher cut got virtually flushed out yesterday … good 
they maybe should have listened to Mr Buffett, who said, he never based the decision to buy or sell stocks on a FED move … OR 
by watching Goldman Sachs … they DID NOT BUY ahead of the decision … why not? We know that THEY KNOW
Citibank named as expected Vikram Pandit new CEO … he said in an interview that he is neutral biased towards a possible merger with Bank of America … possibly reviving that idea again … GE expects profit to rise by at least 10% in 2008 … therefore outperformed the market by closing down only 1%.
Asian Markets: Markets followed the U.S. down … losing around 1%, Chinese markets around 2%. China Retail sales up 18% … not bad …
Commodities/Currencies : The Yen squeezed on the FED move, today consolidating down a bit…Oil trades up slightly, Gold stays above 800$
Events: US … Mortgage applications, trade balance, import prices Eurozone … industrial production
Ideas/Strategy: … USUALLY the day after a FED decision shows EXACTLY the opposite move … so let’s wait on signs of a repeat performance … Futures closed around 2% below the CASH close … lot of room to “play” … CAUTION rules!
supports: 7865 … 7850 … 7800/06 … 7760/65 … 7725
resists: 7918 … 7950/60 … 7980 … 8010 … 8060
Tags: Buffett, China, Citibank, daily outlook, FED, GE, Goldman
