Well, there really isn’t much to say. Short term, the bears are in trouble, as short interest ratios remain at record levels—going into the best time of year to own stocks.
Should the Fed cut by 50bps, their (bears) heads will be laser beamed off. However, I fear, should the Fed get all gay and shit, via a 25bps cut, accompanied with more inflation jargon, the end of year rally may stall.
Without doubt, Santa Claus has saved “The Fly,” and many of you. Be thankful for this rally and milk it for as long as you can.
However, I suspect, within a month, the credit issues will reemerge, effectively setting aflame those who like “bottom fishing” in financial stocks.
Over the weekend, I will evaluate, stock by stock, to determine what stays and what goes.
It makes sense to lighten up here, buy a little FXP and drink expensive bourbon, while throwing firecrackers into the lit fireplace.
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