Ouch!

Well, ‘ol Ben sure set me up today. I feel like a four-year-old coming out of the men’s room at a NAMBLA (Newly Assured Mortgage Backed Loan Asset) convention.
Maybe the central bankers are really scared. Either that or they were just setting up shorts and prudents for losses. I think the latter is unlikely. They aren’t stupid. But I think that’s just what they did. I think they must be really scared. First the BofE eats its words two days after talking tough. I think that this gave Bernanke the cover he wanted to slash rates. He’s not alone now. He’s got ‘ol Mervyn to look even worse. They’re just praying for the problems to go away. I don’t think they will that easily. (but then again, I couldn’t have been more wrong today.)

Well, I think that I'll just have to sit on everything for another week. August existing home sales come are announced next week, along with housing starts. I wait for the numbers to come in and then take some profits on ITB, and maybe KBH and TOL. After that, I'll have to try to look 6 months out again. My focus in the past couple of months has been lost, and most of my trades in August were horrible. If we are going into recession, I will try to short Mastercard (MA). They're hardly down at all, while consumer debt is at an all-time high.