Tuesday, September 18, 2007

 

How I'm Playing the Fed

Thus far, I have done nothing.

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.

Comments:
Sometimes when you have plenty of stamina, you can shoot your load more than once.
 
Speaking of short interest, watch FED. It has a huge SI and is looking interesting on the daily.

In other news, SWC is down again... because it sucks.

-DT
 
fuck you, SWC is the next AAPL, HANS, and PCU. I have 87% of my assets in the name. I actually got my mortgage from SWC.
 
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