FED Cuts .25 points, Market tumbles

Well the market got the quarter point that it was hoping for, however Jerome Powell made some comments that did not sound too dovish, and were interpreted as actually being hawkish or more neutral. When he referred to this cut as a “mid cycle adjustment “ and made mention that we are not in the start of a rate cutting cycle, the market tanked. The Dow was down over 500 points at one point just like I said would happen if the language isn’t what the market wanted to hear. At least we got the .25 point cut, if the FED held; the market would have been down over 1000 points. Remember, the extreme reaction doesn’t have much to do with the actual underlying stocks and their business performance, it has everything to do with expectations that were already baked in. I personally love the fact that this meeting is finally over with, and I think the market drop this week provides a good buying opportunity. We will see what happens today after more investors digest the FED points.

TRADE UPDATE:

Yesterday was actually a pretty good day for some of my trades! If you bought those VIX calls (aug 21 expiration strike price of 19)along with me, they are now trading at $.80, which means my trade is up 100% in a few days!!! I placed the trade in anticipation of the FED disappointing, and now I’m smiling all the way to the bank as The gains in my options  more then covered the losses in my investments yesterday. Slack Technologies, which I mention in my prior posts, symbol (WORK) also had a good day, up over 2.5% yesterday. And finally AAPL reported their earnings Tuesday after the market closes and crushed their lowered estimates, and had strong guidance, so AAPL which is my largest holding also was up big yesterday even though the market was dropping fast!

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