I knew the market was due to spike, especially after seeing Cramer capitulate on television last night, sounding the alarms of doom and gloom. Not to beat up on the guy, but he’s been 100% wrong on the markets, since 2007.
Today’s move by the Fed to add liquidity into the AAA mortgage market is brilliant. Furthermore, I think it will help add liquidity, in a big way.
The near term game plan is simple: If you built up a huge cash position, like “The Fly,” sit back and enjoy watching the idiots scramble for sea shells. If you are heavily short, get the fuck out of the way, for your head is about to be separated from your torso.
This type of move by the Fed can underpin a sustainable move in the markets, especially since everyone is caught leaning short.
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