Pretty straight forward. Tomorrow's fed announcement should move the market one way or another. Fed day usually results in a spike reaction from the announcement, then a reversal of that move. Now everyone knows that, so when will it finally NOT hold true?
Reading other traders and many were lightening up positions heading into Wednesday to not get caught on the wrong side of a major move. I was going to do the same, but I wanted to see how tomorrow looked before the announcement, and I stuck with my short positions for 2 reasons:
1. My long term accounts are all invested in companies for long term growth...so my trading accounts are a hedge of protection for that.
2. I'm comfortable with my shorts anyway. Thinking about it now, closing out my FAZ position would be smart, and I almost closed my BID order today but then the market started selling off and figured another night to think about it would hurt. And finally, no matter the Fed announcement tomorrow, OPEN is doomed, so why get out now.
I never did get that Pandora short yesterday...i couldn't find shares from any of my brokers to short, and I just didn't feel comfortable going at it with options with the upcoming announcement. Be ready for a ride (maybe).
And I'm somewhat hoping for no action..lets rip the band-aid off and just deal with the short term consequences...it'll keep us from delaying the inevitable.
GOP warns more easing may hurt the economy
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