"Water shapes its course according to the nature of the ground over which it flows; the soldier works out his victory in relation to the foe whom he is facing. Therefore, just as water retains no constant shape, so in warfare there are no constant conditions."
-
Sun Tzu

Wednesday, January 23, 2008

That was it ???

We had surprising .75 percent point rate cut yesterday and the markets are heading for a weak open. So that was it? A rate cut rally should have boosted the Dow by 500 points easily. I'm very curious about the market's direction today, but I wouldn't call a bottom yet. We're obviously still in negative sentiment mode: negative reaction on good news (rate cut) and strong negative reaction on negative news (AAPL earnings). I went long on the S&P yesterday, but closed that position again.