Wednesday, October 29, 2008

Short This Rally?

With the market up a couple hundred points on a rate cut (expected) and follow-through from yesterday...

I just shorted a little NASDAQ-100.

Shorted the QQQQ at 32.95 at 3:21pm.

We'll see what happens. I won't average into this position too aggressively as this market has been far from rational recently.

I wasn't going to make this trade but remembered my vow from yesterday.

UPDATE - Bought it back at 32.02 at 3:58pm. Just about where it closed (though it dipped to as low as 31.77 or so).

The thing about rate-cut euphoria - aside from the 900 pt rally pricing it in yesterday - is that once the announcement is out, the market gets back to focusing on the crappy fundamentals that spurred it in the first place.

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