Downside Risks.

A stalled economy plus the Fed's booster,yet Wall Street is still wary.A sobering economy despite the additional half-point rates cut has sent a signal of economic disaster,a magnitude which is difficult to assess.

"Credit has tightened further for some businesses and households," the Fed said. "Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets."
In its 9-1 decision, the Federal Reserve dropped its key rate to 3 percent at the end of a two-day meeting. Richard Fisher, president of the Federal Reserve Bank of Dallas was the sole dissenter. He preferred no change.
It was the second Fed rate cut in just over a week, and the policymakers signaled they were prepared to keep going lower if needed.

http://www.federalreserve.gov/

Tracking the Dow on Wednesday,30/1/08

Upon annoucement of a rate cut at 2:00pm stocks pounced higher but gave up after digesting the news.It's now a non-event and the pullback begins.At the closing bell,noticed a very bullish hammer beneath the long black candlestick.The floor is going to be cracked and dug deeper.

The indices have geared up for the Fed's meeting as seen on Thursday till Monday.When the meeting starts on Tuesday the bulls were on hand to tackle with the market hopefools.Upon completion of the meeting announcement,that's it.The bulls ferociously gored everyone of us.These instituitional funds are real crooks.The volatility starts again & we'll be heading south.