Easy Trade

7:30 am EST. Yesterday's trade was pretty easy. I told you to buy the Ultrashort S&P 500 ETF (SDS). The ETF was up 5.63% yesterday. I don't think that run is over but we might go a little higher today because of dollar weakness this morning. You will probably see choppy trade and light volume today as the market waits for more information, specifically from the Fed.

While no one expects the Fed to do anything with rates, the market is waiting for the Fed statement. They want to see if there is anything that indicates a rate hike down the road. Personally, I can't imagine a scenario where the Fed aggressively raises rates before the end of the year. However, they have a lot more economic information than I do.

I continue to remain with a lot of cash right now. I am avoiding any aggressive long positions. I will hang on to the SDS trade until the market gets more information on issues like the economy and earnings. Until next time, stay low risk..