We can argue that the Fed shouldn't scare people - with their latest statement telling us the end is near and keeping rates at zero - however, they did.
We can also argue that what the Fed said they were going to do (The Twist, or more appropriately long term financing for short term uses, or simply maturity lengthening) didn't work [apparently!] and they should just DO THE OPPOSITE, well it doesn't matter.
What matters is - buy low - sell high - stupid. The "fund" buys on big down days adn sells on big up days - its not rocket science people. From a personal view point these are tax less low cost index fund 401K trades - so there is little "friction" in these trades.
What else is going on is CNBC Challenge or what I simply call "the fake portfolio" trades. The performance last week was decent +2.9% for the 1st week - and a weekend "flat" position so there is no "fake" risk. However, the trading volume is high - because it is frictionless and costless it really doesn't matter.
FAS and FAZ have proven to be excellent tools here. FAS and FAZ have high beta, so be careful, if you trade in the real world with these.
In any event - back to the show.
