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Just another roller-toaster day on Wall Street. Merrill\'s huge write-off along with the dismal existing housing report weighed on the sentiment of investors and at one point Nasdaq dropped by almost 3 percent. Treasury bonds also rallied sharply following the housing report. Then something interesting happened at around 2:30pm in the afternoon and apprently some investors believed in a rumor that the Fed is going to take some imminent action towards rate cuts. Although I don\'t think we should bet too much on the rumor, I do believe we will get the rate cut in the next Fed meeting on Oct 31st. Oil prices rallied sharply after a very bearish inventory report. If this bearish inventory trend continues, we may not be far away from seeing $100 oil. Tomorrow will bring more housing data and given the poor existing data today, Wall Street should already get prepared for another disappointing report.
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