Well... It Could Be Worse...

After shorting AAPL @ $86, I bought it @ $73 (trading a bit lower now), and sold out $/Y at 116 (after going long at 114) just as shorts were stopping themselves out. Better than a kick in the teeth. Fed decision coming early next week -- the consensus right now is that the Fed has at least one more rate hike left after this coming one. But things might well get dodgy soon with Bernanke stepping in Al's shoes next month. So, unless there is something immediately obvious which warrants a big position, it might be best to step back and take some risk off the table.

As I suggested yesterday, the bull party still seems to be going on, as it's January and people are not afraid to go crazy early on in the year (as there are still 11 months to make up for any mistakes). Might still be better to stand back and watch the craziness unfold though.