..digest...sleep on it and come back the next day with a clearer head is the best remedy for yesterdays extreme sell off.   The FED clearly disappointed the trader, the investor by not taking sufficient action on the biggest problem and that is dealing with the financial mess that is out there.  By not cutting the 'discount rate' another .25pts, the liquidity needs were not helped.  Basically, the FED didn't address the markets biggest weakness in many minds and went to RICK's cabaret, letting the markets get hammered.  How else do you explain the only stock standing in the green on our watchlists being RICK!. Must be the only recession proof place in town!.  So, in one big swoop we rinsed the market of a lot of points...344 on the DJIA, 83 on the NASD and another 46 on SPX off yesterdays highs.  Numbers like that suggest a potential bounce and pre-fed we said we'd look to do some dip buying on a sell off, which we did but not too aggressively.   Lots of recent favorites like MA were hard to avoid on sale, but you may consider selling any stock if you get a recovery attempt move or gap.

On the technical side there is no great damage, but what we need to see is the indices recover and hold 13500 on the DJIA and 2700 on the NASD to start thinking of accumulating positions of substance.   The markets were in overbought territory, the noise of a sell off on the FED was echoed over and over recently..add a few surprises in the actual decision and you have a sell off of magnitude.  Fortunately, we are all used to negative 250/50 days on the indices for the past few months and can deal with yesterday without yelling fire and running away from the market.  Hey....maybe this was healthy if thoughts of prolonging this recent rally into the New Year cross your mind.  Time will tell, but in the very short term we need the market to show us something...some more of that grit and determination would be nice before we go diving in with any force.