Tuesday, September 11, 2007
Rolled Already!
We rolled our WHR play yesterday as it approached our breakeven point. As I said in my general email I still liked the position but the losses can mount up if you don't stick to your plan.
We now have downside barriers of $85 and upside of $100. WHR has fallen a lot recently and my gut is that it will recover, especially hopefully next week when the Fed does it thing!!
As for the markets it was yet another choppy day yesterday with the SPX up and down finally giving up just 1.85 points to end on 1,451.70.
Comments from Fed officials Monday were in the spotlight, but several leaders were somewhat hawkish on cutting rates. Atlanta Federal Reserve President Dennis Lockhart stated that the recent news in nonfarm payrolls should be taken in context with the recently positive reports in retail sales. Of course, we will get data on the strength in retail sales this Friday.
Philly Fed President Charles Posser was also hawkish, stating that the Fed could handle problems in the financial markets without changing the overall direction of monetary policy. However, San Francisco Fed President Janet Yellen noted that problems in subprime mortgages have raised risk to the overall economy. Fed fund futures are pricing in a rate cut next week, with the odds even pointing to a 50-basis point cut.
Today should be a quiet day. Its September 11th and traders will probably sit it out just in case there is another attack.
Until next time.
We now have downside barriers of $85 and upside of $100. WHR has fallen a lot recently and my gut is that it will recover, especially hopefully next week when the Fed does it thing!!
As for the markets it was yet another choppy day yesterday with the SPX up and down finally giving up just 1.85 points to end on 1,451.70.
Comments from Fed officials Monday were in the spotlight, but several leaders were somewhat hawkish on cutting rates. Atlanta Federal Reserve President Dennis Lockhart stated that the recent news in nonfarm payrolls should be taken in context with the recently positive reports in retail sales. Of course, we will get data on the strength in retail sales this Friday.
Philly Fed President Charles Posser was also hawkish, stating that the Fed could handle problems in the financial markets without changing the overall direction of monetary policy. However, San Francisco Fed President Janet Yellen noted that problems in subprime mortgages have raised risk to the overall economy. Fed fund futures are pricing in a rate cut next week, with the odds even pointing to a 50-basis point cut.
Today should be a quiet day. Its September 11th and traders will probably sit it out just in case there is another attack.
Until next time.
# posted by Paul @ 5:18 AM 
