I must say I am extremely disappointing in the Fed for their silly attempt to prop up the stock market with a fed cut of 50bps this morning. I mean seriously, the entire street was expecting that. If they really wanted to create a very positive reaction they should have tried to catch the market by surprise. Here’s how you make that happen:

1. You wait till the market is down about 300-500 points again today. You get enough people on a negative sentiment and then force everyone to buy the truck load with a surprise cut of at least 75 bps.

2. You wait till Friday after the restrictions on short selling are lifted and let some dopey funds get massively short and then you squeeze them.

I was on the bus on my way here to the office this morning and saw that Europe and Asia were down mid to high single digits. Futures were down 30 and 15 in S&P and NS respectively. I was praying for the market to go down boat load on the open and then expect the rate cut. What I didn’t expect was to come in at 7:10am to hear that the dopey Fed had cut 50 bps. Yes we are slightly positive right now but there is such a negative reaction in general that I am expecting a ridiculous sell off.

Last night BAC was trading down about a point after hours. The pricing of their offering was expected to be around $22. I saw some serious bid absorption around the $23 level so I decided to take home 300 shares from $22.95. I knew I was risking about a point but I had plenty of upside $26-27 at least as the stock had already came off 14 points in 3 days. The market had come off 1400 in the last 5 sessions so any good positive news would trigger nice buying. I thought the Fed cutting rates unexpectedly would be the catalyst for the pop. To my surprise the stock is trading near its offering price of $22 when I came in this morning after the cut. Some other stocks were up slightly but I have to say that it just looks like a bear bounce. Things do not look good right now in premkt. I will be ready to smack some bids in market stocks if we start to sell off hard.

Good luck with your trading today.