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Wednesday, December 12, 2007

BUD fill and market reaction to Fed news . . .

I was filled yesterday on my BUD purchase for my long term investment portfolio at $53.34

What a day we had. My personal thoughts are that the 200 + point drop was a knee-jerk reaction on the part of traders, who are providing more and more volatility to the markets. They wanted a 50 basis point cut, and they received a 25 basis point cut. Personally, I think if you're going to trade the markets, you should be forced to also invest in them somewhat in order to cut down the increasing volatility we're seeing. But hey. That's just me. It was a violent knee jerk reaction. But that's all I'm seeing it as. Personally, such traders need to be weaned away from trading based solely on the words the utter forth from the Chairman of the Feds mouth.

Regardless, I would not be at all surprised to see the markets either have a) a complete rebound today or b) consolidate at the current level with some possible congestion punching a bit lower before we head right back up again.

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