Alrighty Then

So the Fed opted to pull out the big guns and lower the funds rate by 50 basis points. I must say, I was not expecting this price action on Tuesday. All morning the tone was decidedly bullish and after the announcement the S&P moved about 30 points in a little less than 5 seconds (ok, maybe it wasn't quite that fast, but it was fast). By the time my data feed caught up, the move was done. There were a couple of decent entry points after that, but I opted to stay out.

My systems did surprisingly well. I was a little nervous Tuesday morning because I was very long. I don't really like having a lot of positions open going into a big market moving announcement. But, if there is one thing I've learned the past couple of years it's "trade the stinkin' system". It doesn't matter what I think will happen - if the system has me long, be long. Obviously, that worked great this time. Next time, maybe it won't, but as long as I'm within the drawdown parameters of the system I'm trading, then just trade the stinkin' system.

My options positions, however, did come under a little pressure the last couple of days. I had to add some vertical put spreads to bring my deltas in line. These are October positions though, so there's still quite a bit of time and anything can happen.