The Fed slashed the interest rate by another 3/4 point! The market was already up in the morning on better-than-expected earnings from GS and LEH. After the Fed’s rate cut announcement, the market pole-vaulted to its biggest one-day gain since 2002 (even though, just yesterday, the market was still hanging up-side-down)!
Many of our members were happily ecstatic today, with Allan B and OptionDragon raking in profits on GS:
Allan B
Posted March 18, 2008 at 6:10 am | Permalink (Edit)
GS…March 160 calls from yesterday looking good today. OD…your GS strangle looks good too.
HappyTrading
Posted March 18, 2008 at 7:47 am | Permalink (Edit)
GS/LEH
a little squeezing going on?
Allan B
Posted March 18, 2008 at 7:52 am | Permalink (Edit)
GS…GPYCL…out 9.2. in at 3.2.
HappyTrading
Posted March 18, 2008 at 7:52 am | Permalink (Edit)
LEH ($42)
LYHDI, Apr 45 calls, bought at $3.2
trader’s god
Posted March 18, 2008 at 8:43 am | Permalink (Edit)
I got $5000 from GS strangle if i sell now !! thanks
Makemoney
Posted March 18, 2008 at 1:08 pm | Permalink (Edit)
Everyday is a gift, but today was a very special gift. Thank YOU for incredible gains!
optiondragon
Posted March 18, 2008 at 1:10 pm | Permalink (Edit)
Many Thanks to all for everything.
james
Posted March 18, 2008 at 1:14 pm | Permalink (Edit)
WaHoo. What a ride today. Thank you all for your comments and for posting your trades. Tomorrow is set to be even more exciting than today.
Cheers.
Great trading, everyone! 
The Dow rallied up +420.41 points; SPX flew +54.14 points; Nasdaq jumped +91.25 points!!
Here’s how the market looked at the close:
XLF (financials) jumped a whopping +8.4%!! HGX (housing) gained _6.62%. Techs were strong: INX2 (Internet) +4.9%, SOX (semiconductors) +3.82%, BTK (biotechs) +3.44%, SWH (software) +3.2%. GLD (gold) and SLV (silver) on the other hand dropped, 2.69% and 3.01%, respectively. FXY (Yen) and FXE (Euro) also fell. Looks like profits are being taken on these to jump into the oversold equities! FXI (Chinese ADRs) added +5.04%.
SPX
SPX “pole-vaulted” +54.14 points to close at 1330.74. It is pushing on its 30-day MA. The MACD is almost positive.
Nasdaq
Nasdaq jumped +91.25 points to close at 2268.26. It closed right at the 20-day MA. Its MACD turned positive again.
Yesterday, I said, “I think the market would probably think a 0.5 rate cut is not enough; 0.75 or even 1 point could perhaps induce favorable reactions.” Well, maybe this 0.75 rate cut is just right, given the market’s overwhelmingly approving reaction! It has pole-vaulted the market from the valley of credit woes. The question now is: Is it going to help the market clear the bar? The “bar” that we’ll be looking at for the rest of the week is SPX 1340 and Nasdaq 2300. Going above these levels will send the market on top of the daily MAs, which could signal a change in the trend.
As mentioned earlier, this morning, both GS and LEH beat their earnings estimates. Both stocks gapped up and continued to cruise all day. GS ended the day gaining +16.27%, or $24.57, while LEH jumped +46.43%, up $14.74! GOOG boosted its investors’ confidence by announcing that it is “well-positioned for to weather any economic downturn”. GOOG added +4.59%, or almost $20. CME jumped +5.3%, or $23.80. CME was trading at $400 at yesterday’s low; it closed at $473 today! That’s a $73 jump in one day!! Now, remember, CME was a $700 stock in just December! This also makes ICE very interesting to keep an eye on.
Good night and HappyTrading! ™
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