Ok FED, “Here’s hundred bucks, what can you do for me?” Not enough money for you? Maybe I have to be a billion dollar financial institution. This morning’s move just gave the financial institutions (Goldman Sachs, etc) to sell what they weren’t able to sell yesterday. I made a few adjustments yesterday after the announcement, selling some longs, buying some puts to reflect a new market catalyst.
I would have been perfectly OK with giving the market it’s .25 pt/.25pt and an infusion of liquidity solution all at once, or have a press conference during market hours so that we can all react to the same information. But NO, instead it gives us the .25pt adjustments. The after it sees the market doesn’t like it. Before most retail investors can trade or hedge their portfolios with futures, BAM. Introduce some save the market plan. Giving the market some candy to quiet itself. And screw me and a few others who are trying to stay nimble in this market. Then the FED LEAKS info to Steve Leesman at CNBC. What kind of fed do we have? Market Manipulators. If I were riding a chairlift with a Fed Governor, they may find themselves off the chairlift and on the snow around tower 3. Heck, the market would have made a retracement all by itself today.
If you are thinking, here is another Bear blogger. Well, I was actually positive delta. I was negative delta going into the announcement, then I adjusted. I expected a 50% retracement upward today. Well eventually I was right. And I am up on the day. I had put together a list of about 5 trades that I wanted to enter this morning. Now, I am looking to get out of the market, and be exceptionally selective in entries. I may not even enter new trades going into the end of the year.
Here are Cramer’s comments from Real Money:
They want transparency but their methods are as opaque as I have ever seen. They desire stability but they create massive uncertainty. They want to reward hard-working people and lenders but they offer a program today that might or might not address the Citigroup, Washington Mutual, Freddie Mac, Fannie Mae capital problems.
They are stupid beyond belief.
That’s all I can say about the Fed. They have managed in one fell swoop to solve nothing but allowing really bad banks to potentially unload bad loans. It is not even clear they will do that.
I woke up to a multiple thousand dollar fed “gift” this morning, and I was pissed. I spent 4 hrs last night pouring over charts and creating gameplans for today and moving into the first quarter. I put few “tickler” orders in that were below market of yesterday. Well at the open they filled and put the screws to me. Bad on me. As of 9:15am, I have now worked my way back to profitability over yesterday’s closes. I enjoy trading VOL, but come on! I will make the best of this, but these guys are a bunch of Board room crooks.
I hope the market tanks for a little while. Not a catastrophe, but rather enough to ruin the credibility of these jerkoffs/”streetwalkers”‘ at the federal reserve. Don’t fight the fed. But the fact that they made their decision, then waited for market reaction, and made the next move in the pre-market should tell us that they don’t really know what they are doing. They are looking for the market to tell them what to do. Making money in the market can be difficult enough, but when the rules change over and over, it can be particularly frustrating.
When all the smoke clear, I was out of most of my USB and my accounts were up 1% on the day. Without, that morning jerkoff I would have been up about 3% on USB positions alone. What a sham…. I mean shame.