Eurodollar Trade

-1 GEM8
5/8/08

Hey Guys,

After a decent trading hiatus I decided to put on a simulated trade today. I initially started looking for an option to put on a bear call spread on the S&P ETF, but the recent sell-off has made this trade less attractive. Seeing as I am a permabear, I think the market has alot of room left to move lower, but I see a decent rally sooner rather than later. No need to put on a position that I am almost assured to sweat with. I will watch for an opportunity in the near future - perhaps after the next big move upwards.

I wasn't too surprised watching the Eurodollars move much lower after the Fed indicated they were finally nearing the conclusion of their rate slashing. Ben Bernanke has made Jason look like the Powerpuff Girls.... Anyways. I see little reason for the June contract to move 50 basis points higher after a low around 97 at the end of April. I am anticipating a decent sell-off to get back to the levels, or at least in the vicinity, of where we were after the Fed meeting.

I sold one June Eurodollars contract at 97.43. Target: 97.20. Stop loss: 97.50.

Mark