Tuesday, March 18, 2008

Stocks up; Fed Cuts

With more than an hour left in the day, it's hard to tell where the market will go. But major indexes have lost about a percent since the Fed cut the Funds rate by .75% at 2:15.

Thanks to my overweighting (poor diversification?) in broken financial companies, my portfolio is doing well today, so before 2:15 I hedged some of my gains by buying S&P 500 ETF and Countrywide puts. I'd like it if both popped back up and the options expired worthless, but I decide to negate some gains by protecting against losses if today's finish is dismal.

Another thought: I'm not a currency expert, but the dollar is the cheapest it has been in decades, and the Fed looks like it's just about done cutting... I'm starting to look at UUP, a Powershares Bullish Dollar ETF.

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