Another Opportunity to witness the interest rate effect

16 -17 Dec 2008

I really glad that I am able to witness the historic rate cut decision in this century. Having an almost zero interest rate in USD. It's the last bullet in interest rate.

On 16, I had already believe the traders will push up the DOW but don't know the effect is so significant +359.61 close at 8924.14

Regarding the Oil, once confirmation the Oil will cut 2M barrel, the oil gradually drop to 44 / barrel and the oil security also don't have disappointed result even the DOW climb so high, the Banking sector is the winner.

On the same time, USD immediately dropped after the announcement and the EUR & JPY 1.41xx and at 5:59pm is 1.4093 &89.12 How long this rally can last? Let's wait and see.

In the morning, I am still thinking how will be the +395 affect Asia Market, However, all asia markets are open high and close little bit low. HSINDEX : 15460.52 +330 2.18% the high is 15555, Japan 8658 open , 8741 high and close at 8612

I believe there will not be big drop in China and HK market because more and more stimulate plan is annoucing. I believe HK market will keep higher after Mr. Tsang came back on Friday on the RMB business. More fund is in the market now. Besides, I still believe it is the year end effect. The turnover of HS is 564M. Not so bad.

I still prefer to sit aside and see tonight. Dow future - 178 @6.04pm. EUR - 42 Cannot predict whether it means the direction in DOW tonight. Or it is a trap?

One thing is right after last night. 50% 50% stratgies is the best. Able to manage the event times can help you to be calm.

For instance, Oil immediately retreat after information release. As you prepared for it. You will calm to manage. However not everytime have to same effect. Will it apply to OPEC decision just now? Dont' know. Because Oil already climb to 45.66 as opec affirmed the 2M barrel production cut. Will be retreated tonight in US market? Let's see !