Emini Trading System Futures Jackpot
An Emini Lottery
Ticket (With a Small Jackpot)
9/18/07
All 3 eminis are holding steady today with the Fed ready to speak regarding,
among the more important things, rate cuts. It must be inferred that,
because of "subprime woes" and recent volatility, rates are going to get cut
either by a quarter or a half today. What do I smell? I low risk, highly
speculative trading opportunity with the almighty emini S&P futures.
It's pretty much a given that the whole world is expecting that it will be
cheaper to borrow money tomorrow than it is today. But here is a word that
we have not heard in a while that could deal a gut blow to the crowd of
folks that will be continually refreshing the finance page today -
inflation.
Still a Very Recent Memory
It has only been 3 months since the our trusted treasurer said that
inflation 'was still the main concern'. Could it be that only 90 days later
(today) that inflation is no longer a problem? Maybe, or the more lucrative
answer, maybe not.
A short sell on one S&P emini contract today probably will not be a very
risky bet. Think of it as an expensive lottery ticket to win a small (very
small) jackpot. A rate cut is currently priced into the futures so we will
not expect much upside if the banks get a half point break. But we should
expect a nice sized drop in across all of the emini trading products if
inflation still remains an issue for Mr. Bernanke. There's alot to lose and
not much to gain if we do see a rate cut this week.