Tuesday, January 22, 2008

Todays Federal Reserve emergency action cutting the discount rate 75 basis points inter-meeting (the first time since 2001 such an inter-meeting action was taken) is nothing more than the Bank America Bail Out Plan. Last week, BAC took on the rest of Countrywide (CFC) and now the Fed has helped them by softening the cost of taking on the carcas of this crappy company. Almost 6 months to the day, we told you to short Harley Davidson (HOG) in the mid 60's. Well this morning HOG opened at 34.75!!Because of the fed action and because we have over 30 points in the trade, it is now time to cover the short. I think, err.... I know that HOG is going lower, but take the money because you never know how long this fed induced counter trend rally can last. You can always reshort after the gittiness ends. HOG has already bounced to the 37-38 area off the lows. So take that great trade off now.......