FEDspeaks- STOCKS TANK

FED speaks today- and with every phrase however well-phrased- he is breathing trouble for stocks. He gave his economic outlook- pretty grim. Tis good he is downgrading growth for 2008. Everyone knows that including the stock market. We need one big whooosh to the downside so everyone and his uncle agrees that we have hit a short term bottom on the market. And we need a steep hike in the VIXX (remember the volatality index) to the level above 30- it was about 25 yesterday. When that happens everyone who wanted to panic has done so- and sold and then theres no room but for the market to go up. Pretty simple. Until you dont feel like throwing up as you see the stock prices collapse- or throw in the towel- either of the two- the stock market has not bottomed. Thats a pretty ugly way to look at it. But with DOW 12300- ouch- and S&P 1350 - Nasdaq-2375 - another 2 per cent moves on the downside may help to get the bottom in and so the future better off- as we adjust to grimmer prospects.

Why wont the fed chariman just cut rates 2 weeks earlier- than on Jan 30 one thinks as the action will speak louder than the long winded speech-. He is painting a grim growth and things havin worsened scenario- just do the rate cut right away. Blah blah blah... Jim Cramer is right in expressing that the FED is blowin it and I think by comin on live on national TV and talkin about the same crisis over again without givin the rate cuts is a bit frustrating to say the least.

The only positive I can take out of this bear market is that there will be light at the end of the tunnel- a bounce is what I call it. Hang in there-
We had a goood ride in FREDDIE MAC- took my position off yesterday at 35 - and am sure glad I did. ITs 30 today- and am a buyer all over again- as when the fed does ease rates FRE will wake up again!

Its the day the stock market heard it all over again from the FED and crashed -300-400 points on the DOW- I am afraid of predicting- though we are already down 150. And then in the last hour I am hoping for the rebound. Never a dooms day -always opportunity when its this bad. Use the free cash wisely- stocks will give more return than cash- once this turmoil ends- it does end - believe me.