WHY on earth one wonders the FORMER (stressing on `former') Fed Chairman would get so much coverage a day before the current Fed meeting? To get the market shaken up a bit in case it was not already done doing that all of last month. No doubt the market is sulking and down... across the board as Greenspan speaks.
All I can say is what Berny says tomorrow will be more important and what he does will move the markets. The knee jerk reaction (as some would like to put it) will be a rally or a slump whatever the bears and bulls choose for it to be. But a relief rally is coming up this week is my prognosis. Once we wait so much for an event, such as the fed cut... when we get it we sigh a relief. THATS the relief rally.
Obviously if the Fed does not cut rates tomorrow- the markets will crash all over the world. AND if the underlying meaning of not cutting is that the economy is firing on strong cylinders... then one wonders why the markets would crash. TO the trader it will spell opportunity... again. Whats to lose?
SIRF took profits on friday at 20.5, believe it or not its below 19 again- its not a pull back - its profit taking. Whats the difference, if I sold at 20.5 I will buy at 19 with all my might. Thats what I did today.
MNST =33.4 and YHOO=24.7 are doing well. YHOO moves above 25 today is my humble intuitive prediction. I will hold on to both positions.
Whats the big deal - a .25 move up is not a big prediction. It is trust me, becasue 24.73 is its 50 day moving average- and getting above that and staying there helps the stock to move higher again. Thats a technical move- and helps to know some of that when trading.
New pick.... has to be VMW- the hot IPO of this year- ran upto 82 last week- and is down today on good news. Thats when I pull the trigger sometimes -down on good news- so am buying some at 74. A market swoon will take this down to 68... so will buy just half my target position today. This is from my speculative cash. The one that grew nicely in TSL ... trade. Talkin of TSL the solar stock I would move onto the next one- STP- its more stable and less volatile and fundamentals look good from a solar perspective.
Unfortunately Greenspan speaks all day- in bits and parts and the interview on CNBC will be broadcast at 9 pm so the sulking in the market continues in the world markets .... tonite and then tomorrow morning maybe we discount everything and get ready for the Real Fed- Bernarnke to ACT!
To cut or not to cut... is not the question in my mind. 25 basis points on my crystal ball I find.
Relief at last as we find new opportunities tomorrow and beyond. No time to pause. ACT and be alert. Keep some cash for a big market crash- if it aint happening we buy anyway- but without cash we cant do much... So my cash from LEH and AMGN is on the side for pullin the trigger tomorrow....
Wonderful isnt it- as you understand the ease of trading... and relax all the way to the bank...
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