Wall Street celebrated the day after St. Patrick's Day with a monster rally and green plus signs every where. Financials led the way with LEH reporting good earnings before the open. Gold was one of the few losers on the day. The 3/4 point rate cut was less than the widely rumored full point cut and the dollar rallied and gold fell.
As I have been writing for a whole week, the Fed rate cut has been baked into the cake. Past Fed moves have been kind to gold, not so much today as gold got clobbered. The stock rally was more on the health of some brokerage stocks. Rumors circulated about MER, but even that could not do more than an hour of damage on this rally day.
It is painful to miss these big rallies. It is more painful to be short. For 2008, I am holding my own, despite all my trades being on the long side in the face of a steep market decline. I have been cautious, cut losses, and been lucky enough to avoid the disaster stocks such as BSC, HUM and others. My one losing trade, so far in 2008, ironically, was GDX, which had a miserable day today.
As always, what next? Hard for me to believe the coast is clear for the stock market, though with Good Friday coming up on this short trading week, lets see if the market can make it to the holiday without another crisis. Late March, early April, sometimes has investors selling to pay their tax bills.
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