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Market Reaction: Traders Want MORE Cuts From Fed

If the market got what they wanted with a 75 bp cut by the Fed, why hasn't there been a stronger reaction? Futures initially rallied 40 points, but have fallen back again. There's two separate issues here:

1) Some traders are selling into strength because they had to make sales--some bought futures an hour ago, and have a nice profit--and in case you don't notice most active traders haven't seen a lot of profits recently.

2) The sell any rally mantra is still strong---that in a bear market you sell rallies, not buy on weakness.

Good news about cutting at 8 am is that Europe is open and can react to it.

What's next? Here's what traders want:

--ECB following with cuts of their own.

--A larger stimulus package from Pres. Bush, Reid & Pelosi.

--Another 50 bp cut at regular Fed meeting.

Questions? Comments? tradertalk@cnbc.com

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