Go long now, then short just after Fed meeting?

Discussion in 'Trading' started by crgarcia, Jan 28, 2008.

  1. Now that the media starts talking about another rate cut, its time to go long; after all, the market shrugged off new home sales.

    IMO whatever the Fed does in their Jan 30 meeting, it may not reverse the plunge.

    What you think?
  2. just21


    Depends how much they cut. Helicopter Ben has been criticised for reacting to events and being behind the curve, this is a chance to get ahead of the curve. Rate cuts of .75 and .50 in a week would be unprecendented and would lead to another rally imho.
  3. Market is still missing a selloff. The one from Tue following MLK was a false bottom. I could see the street and I sharing the same view that the Fed can only do so much in the short term and rallies are no longer opportunities for the long side - now the short or closing out longs.