Ben’s Big Chance, Heads Up Trader Time

One of the better traders I know emailed me late yesterday, he covered all short positions.  We agree with that stance.  A good Dow / Nasdaq relationship chart turned positive yesterday.  How does one play this information, probably gingerly, as the extreme downside objective of 1294 on the S&P still sit out there.  The bounce from this level is wide open over the summer.  If the Fed is aggressive the bounce will be a lot stronger than if they do their usual pandering to the market.

As to the current Fed meeting.  They could provide some shock treatment and tell the market that they are serious about inflation and raise rates 1/2 point.  Slight chance of that.  But how many of us can borrow at 2 percent.  The 10, 20, 30 year market rates are not that much different from the time before the Fed started lowering rates last year.

8:13 AM CDT