Friday, November 30, 2007


Thank you Mr. Bernanke for giving the bulls hope for another interest rate cut despite the first two interest rate cuts having no positive effect on the stock market. If the bulls are foolish enough to believe that a third interest rate cut will be good for stocks then let them. This gap up open is a great opportunity to add to QID and FXP positions and perhaps some SDS DXD TWM SRS. If the market is too strong going into the December 11th Fed meeting I doubt rates will be cut. So either way the market is bound to pullback. The market is currently lower than it was before the previous two rate cuts so how can we expect this cut to have any effect ? I cannot go long here and will cut back some of my long exposure further. Either we will see a retest of the recent lows or we will get a second leg down. Either way, I believe I am well positioned.

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