Prepare for the FED

You could thank today's durable goods number for the market rising the second day in a row.  The wall street clearly showed the mentality of "eat the cake and have it".   They obviously wished that the FED will lower the interest rate and the economy remains strong.

They may get their wishes.  

I begin to believe if the market get what they want, meaning 50 bps cut, we may see some upside of the market from here.
  1). the market is clearly oversold as many stocks have already priced in a recession.
  2). there are signs that because of lower mortgage rate, and a ample supply of the house, there are bargain hunters entering into the housing market, which may signal the end of the housing crisis.
  3). the liquility problem has been lessened.

What if the FED want to fend themselves against allegations that they give in to the WALL Street too easily and leaving the interest rate alone or a quarter point cut, then, we could see a sell off, at least termporaily.

So, prepare for the two cases, have your long and short list of stocks ready, if you hear a surprise, entering your order as quick as you can, that probably could be a quick profit that one can make.

good luck.