Pre Market - August 31st 2007

Emotions running at fever pitch

Economic data and reports from Bloomberg overnight on what President Bush will do to address the people who may lose their homes caught up in the credit crisis have emotions running at record levels this morning.

Futures are up on the psychological boost in traders minds that the FOMC has what it needs now to cut overnight lending rates. In addition to that what is raising the futures is the financial sector on the news that President Bush will initiate policy which would rescue homeowners who face foreclosure on their homes and fit within a certain criteria. That has some pressure being lifted off of the mortgage sector and the mortgage companies are being bid higher in pre market.

A risk taker who likes placing bets on the tables at Vegas would jump on board this morning and join the anxiety driven moves this morning. A disciplined trader will continue to wait for logic to take over and set a direction, not anxiety.

Has the world changed overnight, absolutely not. The only thing which has changed overnight is the levels of anxiety and actually the 'will they/won't they" questions on if the FOMC will cut the Fed Funds rate has actually increased now. So with that much uncertainty we will wait for clear direction, not perceived direction.