Working on a Grid plus funny Fed comments

I started working on a grid strategy again. Reading a lot of input from the oanda forums. Thinking of it more in a pyramiding-winners vs adding-to-losers theory. Antimartingale, so to speak.

I had some really good thoughts on it last night right before i fell asleep, but of course now i cant remember what they were. dammit.

also, just read this on Minyanville today and it totally cracked me up. Munchausen by proxy, indeed!!!!


1. Fed Shifts to Timid & Indecisive Bias

The Federal Reserve Open Market Committee formally shifted their bias to "Timid & Indecisive" yesterday.

• First, we should note the dramatic shift in the Fed's housing assessment.
• In less than 60 days we've gone from "signs of stabilization have appeared in the housing market," to "the adjustment in the housing sector is ongoing."
• Here's what's actually missing from the new FOMC statement: "the extent and timing of any additional firming."
• Now the Fed says, "Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."
• Of course, the Fed is still "worried" about "readings on core inflation."
• And well they should be. The Fed, after all, is what creates inflation, not what stops it.
• When we read these statements by the Fed, and listen to the Fed speakers as they hit the talk circuit (even the anonymous "Dr." Alan Greenspan), read their speeches, and then place them side-by-side with the actions of the Fed itself, we begin to realize what the American economic diagnosis is: Munchausen Syndrome by Proxy.
• Munchausen Syndrome by Proxy is a disorder where the caregiver intentionally causes illness in that which is being cared for in order to fulfill an emotional (or in this case self-referential) need.
• Symptoms include:
  1) That which is being cared for only gets ill in the presence of the caregiver. Check!
  2) The caregiver assumes a primary and dynamic relationship with a reporting authority or assistance provider. Double check!
  3) The caregiver is incapable of acknowledging or recognizing anything wrong with its actions. Triple check!
• Anyway, here's the bottom line: Yesterday's FOMC statement will, in time, be viewed as a shift from a tightening bias to a "timid & indecisive" bias in the face of spreading real estate problems.