my saturday post
Saturday, April 26, 2008
One of two things happen with the fed on Wednesday, a 25 basis point cut or no cut at all. My bet is 25 but the bigger picture to me is not the cut or how much but how the market is going to react. It will probably be the last cut for a very long time at least until-they start raising rates again? My call here is that it will be the beginning of the rally in the dollar and an end, at least for now,in the rally in commodity prices. The money flow by institutions is already showing a big move into financials and I think technology will be next. In any case I am watching these sectors for shorting opportunities in the coming weeks:
I will try and give specific recommendations on how I will play these sectors on the short side over the weekend. I still believe the market is overbought and we could easily pull back 500 points by way of a correction, but we will have to watch how it plays out.