Released on: September 29, 2007, 10:56 pm

Press Release Author: Mike Wright

Industry: Financial

Press Release Summary: With the holiday shopping season approaching, crumbling
consumer confidence
and slumping home sales, could prove to be a bad combination for retailers
and the broader economy, according to BetOnMarkets.com's Michael Wright.

Press Release Body: The
worry is that the labor market may contract further and choke off the holiday
spending that retailers are waiting for.

While the news may seem bleak, some traders were hoping that this turn of
events would yet again force the FOMC to trim interest rates. While a lower
interest rate would be a great bonus for consumers with debt, it can have
negative effect on the American companies that have international
subsidiaries or imports from other countries.

A lower interest rate has a negative effect on the currency of that country,
which means companies like Wal-Mart who import the majority of the items you
find in the aisles from china, will incur much higher costs for those items,
and will have to eventually increase prices. Higher charges at the local
store will squeeze spending budgets even more, and that's not taking into
account the higher costs consumers now face at the petrol pump.

Another major issue a rate cut unleashes, on the already battered consumers,
is inflation. In order to maintain inflation within the targeted band, the
FOMC increases or decreases rates, as it sees fit. Over the last few
meetings, the FOMC stated that the threat of creeping inflation was
preventing them from making cuts. Obviously they decided that the risk of
higher inflation was worth it last time. Will the FOMC take that risk again,
well your guess is as good as mine.

While there remain a lot of questions to be answered about the current state
of the markets, and potential market direction, the one area that is now
becoming clearer is that we will possibly be experiencing an increase in
volatility in the SP500.

This means that while the market direction won't be known, any move will be
overreacted. The main reason for this is that most traders have been very
skittish and get out the moment more bad news hits the market.

For that reason, it would be in the best interest of the trader to use the
'Up or Down' option available at BetOnMarkets.com. With this option, a
trader will profit if either of the triggers, which he sets on either side
of the market, gets hit.

A Trade on the SP500 with a 19 days term, and 50 points of the spot up, and
50 points down, will potentially return an ROI of 10%.


Web Site: http://www.BetonMarkets.com

Contact Details: Contact Details:

Email: editor@my.regentmarkets.com
Tel: 35621316105

Address:
Regent Markets (IOM) Limited
3rd Floor, 1-5 Church Street
Douglas, Isle of Man
IM1 2AG