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.

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.

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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DISCLAIMER: This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any FINRA broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.