FOMC ANNOUNCEMENT 1/30/2008

I normally refrain from trading on FOMC announcement days because it is easy to get caught up in the fervor of the last hour and 45 minutes of trading after the announcement and the swings tend to be bi-polar and violent.

Whichever way we end up, the next trading day tends to reverse the excesses of the meeting day.

Most traders are calling for 50 basis points to be trimmed from the interest rate, but as I said before traders will interpret 25 or 50 according to their bias either way. Sometimes I think purposefully worded to keep the status quo.

We have had 4 straight days of nice gains, BUT we have seen declining volume every day...that is not the way we want to see an advancing market behave. It well may be that everyone is keeping their powder dry, but we have to be prepared for another dip to test the lows.

At any rate, let it play out and if by some chance their should be across the board satisfaction .....well never mind.

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