Sunday, December 9, 2007

"Prepare For The Bear": Good Economic News Means Kiss The Feds .5% Cut Goodbye...Hello .25% Cut Only and Goodbye December Rally

Look for a slow day, and a down day on Wall Street. With the price of oil dropping on Monday...oh no...now the Fed will probably only cut by .25% -- which will give back all of that recent December rally over the past couple weeks.

Many people feel, anything less than a .5% Fed cut will trigger recession fears and will scare Wall Street and Santa won't be leaving anything but a devalued lump of coal in your portfolio.

And now that things look just good enough for a .25 cut, instead of the .50 that Wall Street will require for a continued bull market...

I hope you sell as much as possible, take a breather, and if the coast is clear on Tuesday (which it probably will not be), then you buy back in. (But I would have sold Apple at $190, in October, before it dropped to $150 -- 72 hours later, then buy it back at $150 -- and would have been happy selling it again at $194 on Friday. (But I'm a real cowboy!)

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