Tough to be a trader

Today the "Bernanke put" puts the death to the put options holders, knowing they'd bank big profits on the option expiration day. Fed's surprise rate cut on an option expiration day before market open, was to create the maximum punishment for the bears! Some of these traders had lost lot of money this year, fighting the unreal bull marching and credit issue, and they decided to bet big on put options, they got killed today. Remembered, the future was down 1% before Fed's announcement, and after that it's up 1.5%!

1. I have no problem with Fed added liquidity to the market, bailed out the big banks, but I think it's unfair to announce it on option expiration day before market open. Bernanke knows the market well to time this on the 11th hour to hurt the short seller!
2. They can do this after market close on Wednesday, we had bleeding that day. They can do that after Friday's market close. But they chose to do it before today's market open!
3. I'm sure some bears got heart attack today!
4. It's really tough to be a trader, you know nothing about these plots, you research economic news, read charts, and yet you're playing unfair game with the big boys.
5. Fed always bailed out wall street when they screwed up big time!
6. And it told me to always keep the risks small, otherwise, you'll put yourself on great danger to be wiped out.
7. I'm sure many people who switched to short big time yesterday afternoon, they got killed today.
8. I was right to add longs yesterday on the panic sell off.
9. And today after the open, I thought I'd watch to see how high they could take it, not much! As a matter of fact, it sold off after the initial blast!
10. As a result, I found lot of stocks opened higher and closed much lower, not even kept par with the market, such as SSRI and other precious metal stocks.
11. And several other stocks, like HD, GS, all ended weaker than they should. So I don't think the market is out of wood now.
12. Therefore, just before the market close, I sold SSO, SSRI, DIA and QQQQ calls. I kept URZ since it's been trashed hard, I don't think it can fall further. I'll keep some to remind me to pick it up for the long term later.
13. Yes, it's very likely we'll have another up day on Monday and next week, but I rather be on cash and decide next Monday.
14. Things can happen this weekend, and if Fed had to create a perfect storm for the bears, to warn them not to short the market any more, maybe something really bad has occurred, that we don't know.
15. And Japan's stock dropped 5% on Friday, so thing doesn't look good. We may indeed have a black Monday coming. And Fed certainly put that to rest.

Next week:

1. I think it's likely we'll head higher if there are nothing bad happened this weekend, and probably push the market higher early next week.
2. I put the up target as 13500 for Dow and 1470-1480 for S&P 500.
3. I don't think Dow can pass 13500 and S&P can pass 1490. After that, it's very likely we'll have a test of lows.
4. So I'll wait on the sideline for next chance. Maybe long, maybe short. But I'll enter at a safe and "discount" price to cut my risks.
5. I don't share the view the crisis is resolved by Bernanke's smart move today. It's not that easy.
6. If market is too oversold, like yesterday's low, go long. Now S&P is 75 points off yesterday's low!
7. I won't be surprised to see the market open higher and end lower on Monday.
8. Like I said, it's tough to be a trader.
9. And long term, gold and precious metals should do well if Fed keep adding liquidity into the system. But if the market tank, PM will tank with the market. So you can buy them at much lower price.