I'm going long here

Yep so typical of the incompetence at the FED!!!! Let's not bite the bullet in the short run and allow things to stabilize in the free market. Nope. Let's get out of debt by taking on MORE debt.

Only problem is... it is not Bernanke's savings that he is spending!

UNREAL!

 

Thank you, Cutten.

I guess it is time to buy gold again! Also, would you say the carry is back on?

 

I think the carry should be on for at least a trade.

It's potentially a very inflationary tactic. I am more undecided on gold as it had a bid from flight-to-safety, I actually was a bit bearish on gold although that trade hasn't worked well so far. I don't know if the inflation argument will trump the collapse of the risk-aversion argument. So instead I would just buy commodities in general, and especially commodity producers (benefit from inflation *and* reduction of fear in stocks) - that way you get a pure inflation play without the complications of gold.

OIH/XLE, RJI, or just commodity futures.

FWIW I think we might have a bit of an opening pullback in stocks - liquidation from from bagholders and people who freaked when they read the morning papers. Obviously I'd say this is a pullback to buy. As long as we don't break seriously lower (<1040) then the long trade is on.

For risk control, yesterday's low is an obvious stop. I would say 1025-35 is also a reasonable stop, but with slightly more chance of you getting whipsawed.

 

Good call cutton, i agree that this is the bottom for at least until the end of the year. I was saying the same thing yesterday to some people.

 

Finally the Fed does something smart by bypassing the banks, up and away we go!

 

Cheers, mate. I went long some AUD/JPY as it looks in dire need of a correction. Will keep stops tight, though.

 

Well, so much for that. Got stopped out.

 

ST bottom coming on Wednesday at 10:45 am. That's what my fortune cookie said! Let's see how accurate it is.

 

after the pop and drop bs announcement right before the open....id say you are on to something...but im thinking friday

 

I think it's wrong to assume that the Fed is incompetent - they're not stupid, and this is their job - they think about it 24/7. If you assume that they're trying to help the country's economy get better, then they might <i>seem</i> incompetent. I assume instead that they're positioning for greater control over the economy - in other words, for their own benefit, not for the benefit of the economy as a whole. I don't think this is contrary to common sense.