..what a helicopter drop!

What can you say?....A Helicopter Ben surprise with an aggressive helicopter drop down every chimney!.   Yes...kids there will be a Christmas this year, thanks to Santa Ben.   We can also get a bigger tree on credit!.    Most importantly..your parents will have something to trade into what is the usually the best trading season and so you might get presents under the tree as well!...   To us this is what mattered most, the ability to have a tradable winter!.   It is almost irrelevant if you missed one of the biggest Wall street day's in years.   You only need to look forward and the opportunities this will most likely give all of us.   This was so well orchestrated, the PPI #'s in the morning, the LEH report and then what they are calling now the 'shock and awe'.  But, was it really if you look at all the pieces and how they were lining up during the day.    Well, at least that's the way we were thinking as the day progressed.   Considering our stance heading into this was one of being thinly positioned, mostly because we'd seen nothing worthwhile to trade off the past 5 trading,  it might have come as a surprise why we alerting a buy into GS in the morning.  Not only is it a large cap, but it is a bank(s) that never floats DJIM's boat.   As we say often here, we trade with our heads, but the gut plays a role with the head making the last decision.  Guess we went out on the limb with GS, who we saw as potentially the biggest beneficiary of what we got. Also knowing the incredible up and down volatility that always immediately follows the FOMC minutes, we still alerted an invitation to an upcoming party for the market in whole. We never got the volatility, it was straight up to close at highs of day.  We had the inkling of one coming as the day wore on and us soon as we saw a 50bps -50 discount and a do as 'needed' statement, there was nothing left to do but press the send button at 2:15.   Still...like we said,  it's irrelevant if you missed the whole day or our party invitation.   It is the rosy forward trading picture that matters.   Still, we all knew this was shaping up as a historic day for weeks and it should have had you at the trading platform to be actionable just in case.    So, if 50% were correct on the 50bps, a much lesser % of the .50bps camp dreamed of the other .50 and accompanying statement and so what you got was all camps chasing, covering.....making a record day.   The biggest winners of course were the ones heavily positioned.   That's great, but to us the risk was not worth heading into Tuesday.. Instead, we simply reacted to the days flow and still had a nice day.  Reason being if you are mostly in cash heading into this surprise, you can allot the cash to the right sector, the right plays when given the green light.   You have money to burn!.     If you were invested too much, especially in sectors not benefiting, you might have been stuck in plays lagging with no extra cash to benefit.    Human nature is to wait and not believe your stock is not participating.   Remember, not all get invited to the party, we've been through this before recently with VMW,WX not playing along on nice days.   Today, we if get a nice follow through early...we will be selling lots and lots of yesterdays buys before catching our breath and possibly repositioning.    We've talked about this methodology here many times before and most recently put it to work last Tuesday morning to cash in.

GS, of course you could have played anything after the cut in this sector, but as far as we are concerned it was best to keep adding to the morning buys as GS is best of breed to us.  LEH did a lot to make you want to hold GS into earnings, we will be hard pressed not to hold some even if it goes against our DJIM methodology of not holding into earnings.  This is different considering the turn of events, including the LEH report. We still will take a handsome portion of the profits off and keep some into the report on Thursday.  This surely will present some quick in and out opportunities into the close today as speculating will come in.

EXM, DRYS, FREE when a sector shows strength before a FOMC even if it falters just before, it still should be on your radar as the first possibility to trade into following what was a surprise.    If it tries once, it should try again if the news is good.  As far as FREE is concerned, the market participants just haven't had reason to get on the small float, EPS bandwagon this Q.   It's as if the herd has left the building.  We saw that apprehension early in this stock, you can't really blame the herd as it was on the day of the FOMC.   Maybe, the mentality will change and the herd will remember the possibilities in these types of stock we all enjoy here when it's been fashionable.  There is also a seller that was creating a wall, if you have level 2 you will see him as ARCA and they are not showing how much they have.    Once this is/if removed this might move.  Of course, the sector motion will play a role here.  Many stocks take time to be discovered, especially if the time is not one where traders are scrambling to trade as we've seen lately.    We hope this action yesterday by the FED changes that for the sake of small float, EPS stocks as we head into earnings season, our bread and butter.

BIDU, EJ, ROS these stocks highlighted in previous days Journal all performed well leading into the afternoon. You don't need to chase stocks off alerts here, you have plenty of opportunities to get in stocks after the morning Journals and profit.  Every stock is different, some need to be chased, most don't.    There is something for every type of trader, investor here.   Each one of these stocks is different in its volatility and therefore suitability.    We just happen to like to trade all the colors.  EJ, had a tight .15 cent range, which might signal more accumulation after the heavy activity at $20.00 the day before. Where is Merril with a initiation?. This action we've seen the last 2 days might be the forward to it. ROS, russian telcos keep on acting well, even before the FED note.  BIDU, you probably have taken most off the table. It would be the smart thing to do after the last 2 days.

Best to look over the charts printed here for possibilities this morning.  Be careful and don't be trying to play catch up this morning if you missed some entries late yesterday.  We'd hate to be selling some of them to you.  Santa Ben has given us more time than we could have envisioned to make $....you won't be left behind.