Patience is a Virtue

Right now we are sitting on our hands until the effects of the Fed decision are fully realized. In the past, the original reaction (this time was a rally) is almost always the wrong reaction and the markets reverse within days. It's my opinion that the Fed is making $ for the banks and such more expensive for a single reason and moving the discount rate terms from 30 days back to overnight confirms my suspicions which have been with me for awhile as Fed and Treasury statements in the near past have all seem to be aimed at the banks, "Close your Carry Trade Positions"-I see this move as a shot across the bow, thus perhaps that's why we saw such a wild early market decline today.

We will see. Thursday/Friday formed a small Harami reversal and today-thus far it looked like we were not only getting confirmation but a bearish engulfing pattern as well.

If you are not afraid of risk then I think you can short in these areas, we prefer to sit on our hands for a day and wait confirmation-we won't be missing that much of the move. It will also allow me time to see who is going to get hit the hardest (read as -where has most of the Carry Trade money gone?-gold, semi's, emerging markets?). So that's the analysis for now, it may be updated later today.