Taking off part of my Eurodollar short

Just paid 97.34 for $25/bp of my Sep '08 Eurodollar. Thought process is that 1) it's booking $500 from my 97.54 sale of the other day, and 2) I'm thinking of taking the whole trade off and just writing off the $5,200 or so loss. The Fed cut rates 75bps and showed its hand, it will CLEARLY be willing to slash rates further when (not if) the economy slows further, bad debts increase, the housing market gets worse, share prices fall and banks lose even more money than they already have.



You can see from the market move over the last couple of weeks that I jumped in too early...ce la vie. Big change in market sentiment in just over a month, moving 165bps or so, was just too tempting to try bottom fishing (longer-term chart here).


Yours,
2and20