Not quite the middle finger - an unchanged rate would have been the equivalent but close enough. A half point interest rate cut expectation by Wall Street was not on the cards as the Fed choose to cut rates by a quarter sending the stock market substantially lower though based on the volatility over the last few months , a 295 point drop in the Dow with 66 points on the Nasdaq and 38 on the S&P 500 is not such a big deal. The averages are still above strong levels of support and after such a strong rally the past few weeks a pullback is probably a decent buying opportunity.
Positions I had on today included QID FXP and SRS which all did well though my longs were pretty much beaten up across the board. I will continue to keep QID FXP SRS as hedges in these times of uncertainty .
The question on my mind right now is whether this pullback is a buying opportunity or the start of another leg down. If the preceeding rally was a result of hopefully investors expecting a half point interest rate cut, then is this a sell the news event considering we didn't even get the half point cut ? Are big funds going to play it safe here and close shop for the year ? - Play it safe due to uncertainty, keep their yearly gains and prepare for next year.
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