Do not trade the rally, laugh at it. Remember, the Fed is bailing themselves out, via supporting [[FNM]] and [[FRE]]. They (the Fed) are now in possession of 100’s of billions of dollars worth of GSE’s, thanks to their retarded shit for treasury ‘lending facility’ with the investment banks. So, by putting a backstop on the GSE’s, the Fed, essentially, is supporting their new/fucktarded holdings.
The fact that Paulson refused to elaborate on how much this “bailout” of Fannie/Freddie will cost speaks volumes. It is likely to cost American tax payers 100’s of billions.
With my money, I might nibble at some shorts here or buy some more [[FXP]]. However, beware of a sharp rally, led by gay men in florescent jumpsuits, calling another “bottom.”
A bunch of homo bottom lovers, they are.
Once again, just to reiterate logic and reason: [[RIG]] goes higher and so does gold. My favorite way to play gold is [[DGP]]. If you really, really hate the dollar, long [[DGP]] and long [[UDN]] is for you.Comments »