Tuesday, September 18, 2007
How I'm Playing the Fed
I have a few hedges in place (LAZ, SRS). However, I have massive exposure to the upside, long 70 stocks.
In short, I think the LEH and BBY numbers are very bullish for the markets. However, being that we are already "shooting our load," prior to the Fed announcement, I fear there is a chance for a sell off.
In the meantime, the shorts are getting their necks punched, as stocks with big short interests run, namely the financials.
As for me:
I'm enjoying "big dicked" moves in FTK, HANS, FXI, SNDK, JCG, iiG and BWLD, while losing a little in LLNW, UNG, OEH and ALJ.
In short, I have cash available to sell short. I will not do anything until 30 minutes after the Fed decision. Many times the knee jerk reaction is a head fake.
Until then, enjoy the rally.
In other news, SWC is down again... because it sucks.
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