Not much to say today as it would be a waste of breath. All eyes on the Fed at 2:15 and the market is looking for some ray of hope and/or a shot in the arm from Big Brother Ben. Consensus is to hold so a cut would really create a stir but since unlikely it is all about the language today. In any case we should see some good jostling for position here today. Institutions refused to participate in the rally yesterday and have likely already taken profits on long trades held through several days of range. They flattened out on Friday for the most part. Meanwhile they have led the selling on both volume and huge negative deltas overnight. The Productivity number was pretty much at expectation – a little under the zero mark but not much reaction really. The selling has been sustained all morning anyway. The Euro has had sustained selling as well, though the carry trade indicates a holding pattern this morning after some early selling in the European markets. UK housing is pretty hammered and that worked its way through the markets there. We have seem some position selling in the 2s which is a bit odd but the 10s remain flat. Oil is being pounded as well. Regardless of what comes of the Fed we should see some good rotational activity today. Be careful after 2PM though. No telling what might happen with every word out of his mouth. Our crew seems pretty savvy here so I doubt I have to remind anyone to stay flat on intraday trades when Ben is talking. Good trading to all…
Aug 102010
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