Last night Fed Ben Bananckie

[TomTom]

Did anyone trade through Fed Ben Bananckie question and answers last night ?
It was an intersting speach, I was horrifyed when the question was asked how much money was there to prop up these markets, I awaited for his responce.
The Fed spoke out and said another 4 trillion dollars is avalible for longer term bail outs, this is the maximum USA has to give, they allready have given 6 trillion.
Then here comes, the killer.
The 4 trillion for longer term bail outs appears that he is on the case untill when he slips up and I quote 'for short term overnight rates we can fund much more'
WHAT !
After reading into this one sentence the Fed is saying he will bail out every company, this is a green light for major CEOs to sell there stocks now and get bailed out when they apply for funding.

What dose this mean for the markets ?

Its an easy one for me Short below 8000 Dow 4250 Footsie and long above.

USA is in massive trouble, but then so is UK and other nations.

Tips,
Look at your charts and map out the high and low of 2009, put a fibbinach retracement on those charts.
Use the first index to break out of the support/resistence and trade the lagging index as it is that index that has the most catching up to do/more proffit.

Good luck all and stay safe/ lock in thouse profits with a little breathing space and trade the trend lock them in and increase size, get this move right and you could make a years salary from this move if the correct stratogy is employed.

 

[Trading2k]

I like your style. I should have locked in profits last night on FTSE shorts as it dropped to 4130. It's back up today at 4215 and showing strength. It's only time before we head below 4000.

 

[TomTom]

I like your style. I should have locked in profits last night on FTSE shorts as it dropped to 4130

Best to put stops or limmits to protect thouse profits M8, For example if Im in profit for 50-60 points at say 100, I would reduce the postion as the market retraced back up/down.

The best senario is one person to manage direction and another person to manage the exposure. Long as there is some one to risk manage the expousure guy all should go well.
Next thing we know we will be opperating like Bear Sterns / Leaham Bros LOL

 

[Rhody Trader]

Then here comes, the killer.
The 4 trillion for longer term bail outs appears that he is on the case untill when he slips up and I quote 'for short term overnight rates we can fund much more'
WHAT !
After reading into this one sentence the Fed is saying he will bail out every company, this is a green light for major CEOs to sell there stocks now and get bailed out when they apply for funding.

You've misinterpreted what he said. His point was that the Fed and do a great deal in terms of overnight and extremely short-term (days) lending because that money just rolls over quickly and is extremely low risk. They cannot, however, lend anywhere near the same amount longer than that.