Nice JAPO turnaround in the market today, and while I was tempted to put some serious capital to work this afternoon, I decided to let the dust settle and see how the market moves in the morning.
Remember... Our job is NOT to react to the news of the day; in this case, the FED. Our job is to react to how the market reacts to the news. And, history has proven that it takes a day or so for the market to put the FED in the rearview mirror and decide what it really wants to do.
At this point, I plan to wait until tomorrow's witching hour (mid-day) to decide how much I want to put in play. I already have all of the positions identified (stellar ones) that we will select from.
The question is only how much to put in play. At this point, the market is 'seemingly' giving an all-clear signal to put in as much as we have available, and I may do that, but discretion is the better part of valor and that means we want to take a more measured approach. There is still a LOT of dust to settle after the FED's obfuscated dancing today.
The market hangs on every word and nuanced ramblings of the FED chair. Yes... Yes... I know how, 'seemingly', important it is to know how an unaudited, non-governmental organization that can write hot checks into infinity; and how that entity will use those hot checks (that the Treasury has to bankroll) with regard to bond-buying, quantitative easing, interest rates, etc. As you can tell, I am not a "Central Bank" fan and I don't like anyone or anything that has that much power over our economic future with zero accountability other than how they (the FED) interprets Congress's "mandates".
I am accountable to my clients, the SEC, the IRS and a host of rules, laws and governances from our State and Federal government. But, the Federal Reserve (what an oxymoron name that is) is, literally, accountable to no one if their actions cannot be audited by a reliable third-party.
Still... it matters not what I think about the FED. What matters is what the market thinks about the FED and the market cares a great (GREAT) deal. As such, I must also care, at least in the vein of assessing how the market reacts to FED actions.