New Shorting Opportunity Coming Up Shortly

There will be a new shorting opportunity coming up shortly (excuse the pun).

Ben Big is most likely going to do something. He is pretty sure to lower rates at the January 29/30 FED meeting. By how much? 0.25% 0.50% some are speculating 0.75%.

The pressure is on him.
It’s impossible to say, but chances are they will lower the rates sooner than at the meeting. Thats why it’s a bit risky to short now.
If I where him I would surprise the market with a .25% cut tomorrow, and then keep the doors open for another .25% at the meeting.

You want to wait with cash. Be prepared to short the market Thursday January 31 or Friday February 1.
If they lower before that, short the day after.

You are looking for two signals, a bull rally from the lower rates, a sentiment in the media that the worst is over (it’s not).

The more positive the sentiment. The more aggressively you short.

I like the Swedish OMX put options:
See my articles about them here:

http://www.farmann.no/2007/11/december_12_unique_shorting_op.html

The option I recommended here in this article is now up 650% since December 12.

I do not think you can make such spectacular gains again as the market is now pricing in more risk in general.

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