Mohacsy's Safe Portfolio Member Forum

[Dimension]

There is an old saying among traders: "Don't fight the FED".

For the most part, the saying is true..you do not want to go into a fight on the opposite side of the FED. It does not mean that you believe the FED is doing the right thing...in fact, in most cases, many traders count on the FED manipulating and 'fabricating' market movements.

The point is, we are in an environment where we can all agree that things being done are probably not the best course of action. Had we let real estate market collapse or let banks failed, it would have been quick, PAINFUL, but likely the worst would have been behind us already.
We did not...but what we do have now is a government, a treasury, a WORLD in fight for their very lives....as a trader, you need to pick YOUR battles wisely in these times i think.

this is my opinion ofcourse..

To go up against all these people is dangerous.
To bet that these people can defeat the natural market forces and tendencies to 'cleanse' itself is also dangerous.
Best approach then? Quick, nimble, and do not be stubborn about position..in fact, DO NOT PICK A SIDE, let the government and market fight it out...you just trade the volatility and hedge appropriately! Be a market brown-noser and swap sides often...nothing wrong with that.