Thursday, January 10, 2008

 

Buy stocks

The triangle theory is out the window but the market action has looked decisively corrective so I am still bullish. And then we have what happened today. As they said on CNBC today, it isn't often a Fed chairman tells the markets he is going to save the day no matter what it takes which is what Bernanke said. Bernanke just gave everyone a gift. Now I am not saying the market must go up. In fact, if the market goes down there is a real chance of a panic. But then the Fed would have a surprise rate cut and potentially screw the bears over. That was one of Greenspan's favorite things to do. So who would want to be short when the Fed has promised to cut rates at any time it chooses?

We'll see if Bernanke's ploy works. I am guessing it will. Maybe not immediately but an aggressive Fed is not something you want to fight.

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