Theory 1#
DOW:Ok soo within this 2 weeks from 10th March 2008 - 18th March , the possibility of two rate cuts are say around 60% with a granteed rate cut on the 18th. Whether is it big or not will depend on how the fed decides to balance inflation and credit criss. From the news so far , the fed is more concern with the latter , which brings me to conclude that we can expect a surprise rate cut soon and another rate cut on the 18th. Just like last mth feb. "The Fed will not let market fall to its knees and will intervent when nessary , the fed is ready to take action" this are some of the quotes stated in the news some time ago will it hold ture?
STI: If this theory holds true, then with two rate cuts, there should be a rally soon maybe tml or even today however i belive there will be a great fall maybe from 19th to 21th of march?
HSI:Same as STI, copycats do things the same
But my recommendation is to not buy any call warrents at all! Buy puts once it raises or you can play safe wait until the size of the rate cut is annouced then buy puts after 18th or 18th itself.
STI: If this theory holds true, then with two rate cuts, there should be a rally soon maybe tml or even today however i belive there will be a great fall maybe from 19th to 21th of march?
HSI:Same as STI, copycats do things the same
But my recommendation is to not buy any call warrents at all! Buy puts once it raises or you can play safe wait until the size of the rate cut is annouced then buy puts after 18th or 18th itself.
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