FED CUTS

There it was, a 25 bps cut in both the fed and the discount rates. Market reaction- a 100 points selloff in the DJIA and a big dip in the brokers/banks as the bias appears to have been changed to neutral as the fed sees high oil prices and maybe doesn't want to take the eye off the inflation ball. And as soon as I type, markets are back up near the highs of the day. Resilience or stocks just got cheaper as fed rates just went lower?

The rate on the ten year has also soared after the announcement to 4.47% after being under 4.4 for most of the day.

MID's still the best sector for the day as we now have retail, airlines, gaming, banks, insurance and homies in the red.

And the funny Bill Gross asked for his favorite trade - "any non dollar asset."

The non dollar assets of oil and metals have been acting well today and I will agree with Gross on that trade going forward, buy the non dollar assets on the dips.