Tuesday, December 11, 2007

FED Selloff was Harsh but it was rather Expected.

There's no doubt, the FED dropped a bomb today and are still too tight and need to loosen up going forward. A FEd that stays this tight could bring in trouble down the road. BUT let's watch how the charts react over the next few days before making any strong directional trades either way. The rally off the lows was timed perfectly and we made some nice gains and it would be just silly to just try and long/short anything right now. there's too much risk either way. Fed reacts are notoriously deceiving and that's why i try and avoid trading FED meeting all together. I got burned too many times and learned to just let the charts settle a couple of days. No need to lose hard earned profits during trending markets by trading uncertain/choppy ones. Just sit out and relax and let the charts decide what they want to do. The charts are like a trading map and they will tell you where to go next, don't just guess. Let's let the charts tell us over the next couple of days what's going on. We will have a 10 times better idea from tmrw's trading session then trying to make sense of today's.

good trading.

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