As we discussed this morning in the morning meeting (it is lunch time right now) we looked into selling that gap in DF if we spotted a seller. One of our traders spotted a big ARCA seller at 20.50 who stepped lower to 20.35 and traded a couple hundred thousand shares on the offer. The same seller stepped lower to 20.25 and didn’t have to hold the offer that much to show the weakness. <\/p>\n
Now this is an example of a play where you can be very aggressive. We had an idea and saw great confirmation in the tape (the seller stepping lower). That was a chop!!
\nLook for the same ARCA seller into the close to sell below 20.00 and 19.80 for a move down to 19.00. <\/p>\n
The Fed should come out in an hour announcing its decision on interest rates. The street thinks there’s a 90% chance of unchanged rates and a 10% of 25 bps increase. Im not an analyst so I can’t really try to explain or predict why they would do either one. All I know is that if they raise 25 bps the market is going to get killed. So as a trader I will be ready to pounce if this is the case. I will look to hit some tech stocks, hit GS as it is the strongest of the financial sector and actively trade MS and LEH as both are a good resistance levels. Should the Fed leave rates unchanged I am just going to watch my stocks and the futures and look for good opportunities. <\/p>\n","protected":false},"excerpt":{"rendered":"