As we discussed this morning in the morning meeting (it is lunch time right now) we looked into selling that gap in DF if we spotted a seller. One of our traders spotted a big ARCA seller at 20.50 who stepped lower to 20.35 and traded a couple hundred thousand shares on the offer. The same seller stepped lower to 20.25 and didn’t have to hold the offer that much to show the weakness.

Now this is an example of a play where you can be very aggressive. We had an idea and saw great confirmation in the tape (the seller stepping lower). That was a chop!!
Look for the same ARCA seller into the close to sell below 20.00 and 19.80 for a move down to 19.00.

The Fed should come out in an hour announcing its decision on interest rates. The street thinks there’s a 90% chance of unchanged rates and a 10% of 25 bps increase. Im not an analyst so I can’t really try to explain or predict why they would do either one. All I know is that if they raise 25 bps the market is going to get killed. So as a trader I will be ready to pounce if this is the case. I will look to hit some tech stocks, hit GS as it is the strongest of the financial sector and actively trade MS and LEH as both are a good resistance levels. Should the Fed leave rates unchanged I am just going to watch my stocks and the futures and look for good opportunities.