The FOMC and what they did "not" do..

They did not address the current credit situation in a manner which was adequate for many investors. It was widely expected they would leave the rates unchanged but what they would say was going to be the key. Their policy statement was still leaning towards inflation pressure and left little to be desired in how they addressed the declining retail spending, and the current credit situation.

The initial reaction of the hard sell off right after the statement was released in my view is the correct direction that the FOMC has set for the market. At least until there is something to rescue the mortgage/housing/financial sectors. We had wild swings all afternoon after the statement was issued. In the end the there was still selling to take the gains off the table. The feelings on Wall street is "bewilderment" at the moment. The gut reaction by the big money movers just after the statement was issued (the sellers) I feel is the correct reaction and will continue in the coming weeks. The last 15 minutes of selling shows a lack of determination to let the market go higher.

On the DOW we formed a 'DOJI' symbol (DOJI: A candlestick pattern that signal indecision). I would not be surprised to see tomorrow we have a down day.

After the FOMC statement was issued I did enter a swing trade on the SKF (2x short of the DJ Financial Sector Index). My entry price was $85.20 (originally I was going to wait until it got to $90.00 before entering but I dropped my buy price to grab a piece sooner). Even though the market ended the day up I'm still holding this position as I still see a potential for another leg down in the markets.