Here Comes the Beard

Don’t get whipsawed by the initial reaction to the FOMC decision. There is no way of knowing which way the market will go, after Ben shaves his beard.

Many times, the market will shoot higher, then collapse—or vice versa.

The smartest thing to do is wait until 3:30 to place a trade, despite risking the initial move.

The obvious beneficiaries of a rate cut are the banks, retailers and homies. However, since they have run up so high, I’m afraid they will run out of steam, quickly.

Currently, I have a cash horde, which I will deploy once I am certain of the market direction. For now, my bias is to the downside.

On weakness, I will buy more [[SKF]], [[REW]] and [[SMN]]. And, sometime soon, I will double up my [[LEH]] short. That fuckers is nuts.

On the long side, I might buy [[RIMM]], [[AAPL]] or [[VMI]].

In short, I have no burning desire to do anything, due to economic weakness, coupled with market strength. It just doesn’t add up.

Sometimes the best trade is to do nothing.