t2K - the market is very volatile, and the only way to trade this baby was both short and long. From day to day, it changes, even intraday. It's quite dangerous this way - it is easy to get whiplashed. I got extremely lucky today - yesterday I got caught overnight with a ton of NITE when I was unable to sell it during the last minute of trading (not enough liquidity!). So, today I desperately sold it first thing in the morning, and luckily got out with a very tidy profit, when incredibly NITE gapped up. I was very grateful, and of course, immediately shorted it :) But I had problems later on, and got in and out too soon or too late, and my return was rather limited - whiplash. Basically, what makes it dangerous is that there are two major currents at work: on the one hand you have the interest rate/bond situation spooking the market, on the other hand you have the market raring to explode upward - and you don't want to be caught on the wrong side of a tidal wave. I much prefer it when the direction is clear. I expect it to continue this choppy up/down action until the FED resolves things on Tuesday. And yes, I think there will be a rally into July and earnings. How powerful the rally is, I'm not sure, because the knuckleheads on TV are prattling about serial FED rate raises, which would really take the wind out of the market. I mean, it is one thing to raise by 25 or even 50 points and be done with it - setting up a nice rally, but quite another to raise by 25, and then have everyone worry that this is just the first in a series of at least 3 25 point raises (to take back last year's cuts). That would definitely cripple any possible rally. I don't think it's likely, but that doesn't prevent the various analyst-morons from speculating and scaring the market. I hate that. Oh well. If this keeps up, you'll see this choppy nonsense go on, and then a nasty decline in the fall. I hope AG is taking all this into account, otherwise we could be in trouble. But of all stocks, MSFT worries me the least - I'd be far more worried by INTC (not to mention the more speculative issues).
Good luck!
Morgan
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