Good day to move furniture

Fed day, Fed day, bang me on the head day...

I haven't had much to say lately because it's all the same thing vis a vis the market.

Our Federal Government is bent on doing anything it can to support the banking sector. Banks are starting to release stinko earnings numbers, but so far this morning they are getting bid up anyway. This is the reflex trade at work kids: when the Fed cuts, everyone always buys financial stocks...why?...because everyone does and they just get bids.

Of course I'm trying to stick to my discipline and stick to my guns. I got bearish crossovers yesterday in the QQQQ's and SPY, the smallcaps look ready to go down as well, plus the IYF started giving ground yesterday. Buy stops have been hit so I'm back in bear funds...again

But I'm frankly terrified. Being short on a Fed day can really put one through the wringer. In my opinion the Fed is in the business of distorting the markets, and that makes my life all the more difficult.

My problem, though, is I simply can't find anything I want to buy! I ran some stock screens a few days ago and a couple things became apparent:

1. Smallcaps are mostly complete nightmares, chartwise. The good ones (what few there are) are very extended and I won't buy until a pullback.

2. The commodity and tech names that have led us up since mid August are very, very extended. The XLE actually strikes me as possibly out of steam. I took profits there yesterday on DIG. Large cap tech is leading the way, but in many cases, there is not a lot of "there" there in terms of earnings outlooks.

3. The banking stocks have bounced some over the past few weeks, but pretty feebly.


In short, regardless if I get a little tossed around in my short positions today, it still seems to me the strongest bet for the next big move in the market.