Balance Pays Off

I have to apologize for the late posting, I just got done watching American Gangster(yea I am cool because it isn't out yet and I have it).

Anyways, today we had a down day ahead of the fed announcement tomorrow at 2:15. The nice thing was that my account was actually up on the day and I am back even from where I was before the BIDU trade. The SPY puts ended up being a big help, while AKAM looks like it has started its movement, as well as YUM. ACH is the laggard which actually lost me 1,100 on the day, I couldn't exit either because at the end of the day at work someone came in right before market close and before I could exit. Damn people.... :-)

There were a lot of plays I wanted to take ahead of the announcement, mainly bearish plays, however many of them involved banks, which would benefit from a cut and right away I would be out money. The bullish plays also, like on AAPL which looks to have broken out of its flag around 185 would have been great too, but if they don't cut tomorrow it will likely get sold off and I can get in at a better price.

So, I am sitting tight realizing I will have options either way and plenty of opportunities after the announcement and the fed influences the market direction. I feel like they will cut the .25% however part of me feels like they may hold steady simply because rising oil and the falling dollar and rising commodities can't be over looked forever.

If they hold steady I will likely add to my SPY puts because I think the market will sell off because it will be due to inflationary pressure and not strong economics. If they cut we may see a slight relief rally and then a focus on earnings again and I'll likely get into my bearish plays and bullish plays as normal.

We shall see what happens. Hopefully my balanced approach will help me be poised to kick the markets ass regardless, such as my friend the Karate Kid.