Hello everyone,

I was mentioning yesterday that Bernanke came out with an emergency announcement cutting the Discount Rate from 3.50% to 3.25%, remember? Well, today we have the US Interest Rates release scheduled and the market is expecting a huge cut, perhaps up to a whole point from 3% down to 2%. I mean, barely three months ago we were in the 5% near-abouts and now the market is considering the 2% a possible reality… it’s just crazy!

As a trader, I have never experienced such a rates re-adjustment in such a short time span, so I really couldn’t say how the markets will react today if we see the rates axed once again. In all fairness, I doubt anyone is 100% sure what might be about to happen. It’s going to be an emotion-filled trading session, pretty much like a NFP-day on steroids!

Moral of the story: I am not going to set my sails through the storm - time to take cover in the harbor until the sky clears up some.