1:00pm (EST)

We have about an hour before the Fed announcement and the market is trading higher ahead of the news.  The Dow is currently enjoying a 119 point gain and is standing at 9,360.  The Nasdaq is at 2,001, up 31, while the S&P 500 is at 1,006, up 12 points.
Imax (IMAX, $9.18, up $0.07 has held up rather well today despite the stock offering.  That is a good sign as it indicates demand is strong for Imax shares.
IBM (IBM, $119.45, up $1.66) is getting a pop as well but is still having trouble with $120.  For me, this is the clue I’m watching to see just how strong Tech is.  IBM is the 800-pound gorilla of Tech stocks and $120 is the key to a sustained rally in the shares.
One last thing I would like to cover today is the difference between buying a call or put option.  This may seem elementary to some of you but it is important that you know how each one works and why we use them.  Also, no question is too “dumb” to ask and I am gald some of you have been writing me.  Look, when i was first learning options, I had a hard time of getting the concept of selling short and using put options.  That was 20 years ago but I was once were some of you are a long time ago.  So, I had the same questions.
When placing an option order with your broker or over the internet there are two things you need to remember.  “Buy to open” and “sell to close”.  If you place an order any differently then you could be subject to a number of “options” that could require to buy the stock or close your position for a loss.
“Buy to open” is for both call and put options and is used when starting new positions or a trade.  With call options you want the stock to go up.  With put options you want the stock to go down.  “Sell to close” means you are closing the position.
With put options, it is the same as “selling short” but with less risk. 
Please, if you are having trouble with this concept, email me.  I am working on a lot of things right now and one of them is the trading manual.  This will be a must read for all of you that want to learn and find your own trades.  Remember, any money you have spent on a subscription to the blog can be used to buy the course when it is ready.  Sometimes I wish there were 25 hours in a day and 8 days in a week so I could get this out faster but I use the blog to cover things that people are having trouble understanding.
If you would like to be on the list for advanced copies of the manual, please send me an email.  When we go to print them up, they will probably go pretty quick so give me a heads up if you are interested. 
That is all I have for now.  I’m going to kick back and watch the fireworks at 2pm.  There will be an opportunity for some quick trading so watch the Financials to see which way they break after the announcement.
Rick Rouse