FOMC Babbles

The Dow went beyond the Fibonccaci lines and held. This was a major day for the market, with some predicting the 2007 recession is now over.

Regardless we saw theoretical Dow tops of 10,814, t
raders were only able to gain entry to the call if they followed our "pay above prior day close to 10%" and entered at 12.40 up, to sell to 16.50 highs.

Our put we took a larger second buy, for those that already owned, and new buyers could have gotten in as low as 2.70. We continue to hold this as a hedge and on FOMC babble day we may have good two way trades. We see more upside, if the market can pass 10,776 again to 10,850 to 10,950, before likely bottoms near 10,670 or 10,402.

The question is how fast. We would play the day trade on both issues if possible today. The market usually has whipsaw in the a.m. on FOMC, wafffles mid day, upswings and after the announcement takes off, or begins to fall, depending upon what is interpreted.

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The FOMC babbles come out at 2.15 p.m. Historically there is volatility, and often a run up before or after, or both, on the announcement,which will say nothing.