So yesterday afternoon I twittered the following during the 300 point rally:
If Bernacke likes me, the Fed will stick it to the bears right here
It was just a thought that I wanted to get out there as the shorts were leaning the wrong way big time and the FED would catch all the bears right between the eyes. How sweet it is to wake up to a freaking 50 basis point cut!
I don’t necessarily agree with the intervention, but will happily take it. I am SELLING most of my merchandise that I bought into this PANIC now that we have moved so quickly to EUPHORIA and SHORT COVERING.
All the problems of the new Bear are not solved.
Disclosure – Selling my QQQQ calls, SPY, GS and Bidu
Well let’s not get too excited – we all know this was a symbolic gesture by ol’ Bernanker, albeit an important one. Fed fund rate is still 5.25.
Actually the selloff post-rally is likely the product of people realizing the got a little too giddy (and notice how JPY is still at 114, 10yr futures at 108-20).
I think taking profits short term is smart right now, just get ready to buy again cuz this rollercoaster is far from over.
Personally – I’m just long vol, and playing on intraday movements from liquidations etc.