Going into the Weekend

I was able to get into FXI on Wednesday, but missed out on ADRE. However, with the large drop-off I will be able to get in a a significantly lower price. I feel comfortable with my positions right now and will be looking to take advantage of more downtrend within the market. The big question going forward seems to be: Are we going to test previous lows? My thoughts are that we will.

Going forward I will be more selective and focus on specific stocks within certain industries. Rather than spread cash around 3 - 6 stocks, I will focus and buy 1 - 2, which allows me to be more nimble. My overall market sentiment remains bearish.

Waiting For a Fed Move

It looks as if a bit of uncertainty is slowly creeping its way into the market place prior to the fed's anticipated rate cut on December 11th. Here is where it gets interesting, initially the market was falling all over itself trying to coerce the fed for a rate cut. It looks as if the market will get its wish, which is why I believe the market was up so huge last week. Anyhow, I feel the market is getting too greedy and talk is abound about how the market may be hoping for a 0.5 basis cut. So what happens if the market gets the lesser of the two? In my opinion the market will take on a downward trend.

To be honest, I have a few put plays in the options market, which expire in December and are not looking to hot right now. However, I still hold out some hope that the fed cuts rates by only 0.25. If for whatever reason they don't cut rates at all then the market better brace for a large drop in market share and increased volatility. I will continue to monitor the market until the fed makes its move, but I am not looking to make any additional large moves in either a bearish/bullish direction.