US Market Summary 29 Jan 08

Dow 12,480.30 +96.41 +0.78%
Nasdaq 2,358.06 +8.15 +0.35%
S&P 500 1,362.30 +8.33 +0.62%

The stock market rallied reportedly because an ugly new home sales report increased the chances the Fed would cut by 50 basis points at this week's FOMC meeting. If logic holds, then, the stock market should have suffered a good-sized sell-off on Tuesday since the December Durable Orders report was much stronger than expected and reduced the probability of a 50 basis point cut.

That logic, however, didn't hold. In fact, what should have happened, happened. The stock market rallied on the encouraging economic release that suggested the economy is not entering a recession.

It seems funny how US depend on the hope of cutting 50 basis point to rally these few days. Will we see another event again whereby Ben cut less than expected?
We will only see the clear picture tonight as Fed would announce how much they are going to cut.

Meanwhile, stay with intra day trading and sell off any positions before market closes.