Tuesday, January 22, 2008

The Fed to the Rescue

So the Fed came to the rescue of the economy today cutting interest rates 75bp after Stocks globally came crashing off yesterday. What amazed me the most (I have written this in the past) is that no other CB cut rates or even eluded to the need to do this. Do they really think that this is just a U.S. problem ? Today to the first time Mexican interest rates made a considerable move lower. I look for this to continue. As for stocks I think we may have seen a temporary bottom. This was a big deal today. Opening down 450+ points loer, to rebound on the back of the rate cut. I do not look for another opening like this near term.

I still think overseas markets will take a hit in the weeks ahead and this will give the "Big Dollar" a boost.

Any thoughts on this market would be helpful, as I have not been very successful of late.

Good Luck and Good Forex trading.



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