The end of rate cut?

The Fed indicated that the risks of inflation and slowing economy were balanced. One has to wonder if they are any forward looking. While cutting rate is good for the housing market, but detrimental to the dollar and causing crude oil to hit 95$ per barrel. These are all inflationary. Somehow, Jim Rogers might have a point in putting all investments in Chinese currency. Most of the gains in the market today was achieved before the Fed annoucement. As a matter of fact, the initial sell off was to due to inflation concerns. Although it closed above 717 and still in uptrend mode, it would not be surprised to see a sell off to 718ish. Watch 721 tomorrow closely. My original target of 725 was finally reached today. Option trading is like marathon running, it cannot stop. If it came down and regained its strength later on, although the market was higher but the option premium was not. Based on some early signals, took a small short position today, and sure felt lonely tonight.

2c