{"id":6456,"date":"2010-08-10T15:52:05","date_gmt":"2010-08-10T19:52:05","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=6456"},"modified":"2010-08-10T15:52:05","modified_gmt":"2010-08-10T19:52:05","slug":"surprise-fed-rate-cut-a-trading-story-in-brcm","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/surprise-fed-rate-cut-a-trading-story-in-brcm","title":{"rendered":"Surprise Fed Rate Cut (A Trading Story in BRCM)"},"content":{"rendered":"<p>On this day when the Fed made their expected announcement I thought I would share an old school anecdote about a surprise rate cut from <a href=\"http:\/\/www.amazon.com\/gp\/product\/0470529407?ie=UTF8&#038;tag=smtr-20&#038;linkCode=as2&#038;camp=1789&#038;creative=390957&#038;creativeASIN=0470529407\">One Good Trade (Wiley Trading)<\/a><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.assoc-amazon.com\/e\/ir?t=smtr-20&#038;l=as2&#038;o=1&#038;a=0470529407\" width=\"1\" height=\"1\" border=\"0\" alt=\"\" style=\"border:none !important; margin:0px !important;\" \/>.<\/p>\n<p>During 2001, I made a living playing two historic bounces on the<br \/>\nNASDAQ, and grinding it out. On January 3, 2001, the Fed unexpectedly<br \/>\ncut rates 50 basis points. When this news broke, I immediately bought 8,000<br \/>\nshares of BRCM. That was a memorable trade and a fortunate one. BRCM<br \/>\nfirst ticked down after I bought. A possible 20k plus rip was staring at me.<br \/>\nThat will give you an instant shot of adrenaline.<\/p>\n<p>Here\u2019s the exchange between Steve and me at that moment:<\/p>\n<p>Bella: Oh! That is not good.<\/p>\n<p>Spencer: No, just give it a few seconds.<br \/>\nBella: Ok.<\/p>\n<p>A few seconds pass . . .<\/p>\n<p>Bella: I just got taken on the offer in BRCM 8 points higher!<\/p>\n<p>Soon enough, BRCM popped up immediately, and I was selling on the<br \/>\noffer and reloading 5 points lower (see Figure 12.1). I made more than<br \/>\n$100k in less than an hour. Many guys in our firm made much more in<br \/>\nthis bounce. And this was just the first few ticks in that historic bounce.<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/08\/brcm.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/08\/brcm.png\" alt=\"\" title=\"brcm\" width=\"482\" height=\"293\" class=\"aligncenter size-full wp-image-6457\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/08\/brcm.png 482w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/08\/brcm-300x182.png 300w\" sizes=\"auto, (max-width: 482px) 100vw, 482px\" \/><\/a><\/p>\n<p>NASDAQ bounced 14 percent intraday. That is two years of movement in a<br \/>\nfew hours.<\/p>\n<p>Excerpt from <a href=\"http:\/\/www.amazon.com\/gp\/product\/0470529407?ie=UTF8&#038;tag=smtr-20&#038;linkCode=as2&#038;camp=1789&#038;creative=390957&#038;creativeASIN=0470529407\">One Good Trade (Wiley Trading)<\/a><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.assoc-amazon.com\/e\/ir?t=smtr-20&#038;l=as2&#038;o=1&#038;a=0470529407\" width=\"1\" height=\"1\" border=\"0\" alt=\"\" style=\"border:none !important; margin:0px !important;\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On this day when the Fed made their expected announcement I thought I would share an old school anecdote about a surprise rate cut from One Good Trade (Wiley Trading). During 2001, I made a living playing two historic bounces on the NASDAQ, and grinding it out. On January 3, 2001, the Fed unexpectedly cut rates 50 basis points. When &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/surprise-fed-rate-cut-a-trading-story-in-brcm\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,6],"tags":[1272,1269,42,1273,1193,653],"class_list":["post-6456","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","category-one-good-trade","tag-brcm","tag-fed","tag-fed-cut","tag-surprise-cut","tag-trader-education","tag-trader-training","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Surprise Fed Rate Cut (A Trading Story in BRCM) | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/surprise-fed-rate-cut-a-trading-story-in-brcm\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Surprise Fed Rate Cut (A Trading Story in BRCM) | SMB Training\" \/>\n<meta property=\"og:description\" content=\"On this day when the Fed made their expected announcement I thought I would share an old school anecdote about a surprise rate cut from One Good Trade (Wiley Trading). During 2001, I made a living playing two historic bounces on the NASDAQ, and grinding it out. On January 3, 2001, the Fed unexpectedly cut rates 50 basis points. When ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/surprise-fed-rate-cut-a-trading-story-in-brcm\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2010-08-10T19:52:05+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.assoc-amazon.com\/e\/ir?t=smtr-20&l=as2&o=1&a=0470529407\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script 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