Bye Bye, Santa...

When Christmas did not bring the gift the market wanted, Mr. Market,like a spoiled child, turned to crying...

Well, it is a surprise that we feared, not only on the cut, 25 bps vs. 50 bps discount rate, but also the statement afterwords. It seems that FED does not know what to do next, not only does it worry slowdown of economy, but also concerns with inflation as well.

I have never heard so much critism to the FED as uniformly as today, and from almost every corners of investment community. At one point, one guy on CNBC said, we cannot get help from anybody, we just have to find a way to make money ourselves, to me, it did not sound like bravey, but rather, a total resignation. By the end of the day, behind the curve is becoming most over-used word.

There were actually a few minutes of confusion at the beginnig after the FED annocement, the DOW dropped 80 points then bounced back 40, and then decidedly went downwards. So, as a retail trader, there are ample time to escape if you have weighted options and have a plan before hand.

So, what we do next? Will this December rally materialize?

From pure technical view, if we have a few more drops like today, then, we are in a total trouble. So, next few days hold the key to determine the direction.

From Fundamental point of view, I am worried. Again, what could be the catalyst for the market to go higher? If there is no reason for the market to go higher, then the other direction is naturally down.

Sentiment wise, today has a shocking value to the trader\'s psychrology. Not only it put a two week uptrend in doubt, it also shaking the confidence towards the FED, not a good sign short term.

Today actually is a good day to find good stock, when market is so bearish, it is time to find those strong stocks which bucks the trend and stay intact. here are some names: sai, abax and crm. also, pay attention to mon, if it drops to 50 MA, I will be the first to buy.