I am sure you all have heard by now that the Fed cut the Fed funds target to the nifty range of 0%-0.25%.  Free money!  That's awesome.

In effect, all the Fed was doing was taking the target down to where Fed funds have been trading anyways.  I have been watching Fed funds the past while and I cannot remember the last time it traded at 1%. It has been several weeks at least.  Fed fund were trading as low as 0.0625% within the past few days.

I am not going to go through the entire Fed statement.  What I did find most interesting was this.

This is both a good and bad thing. 

It is good because it demonstrates that the Fed will do whatever it takes to avoid another Great Depression.  And they will ultimately succeed.

It is bad because it lays the possible foundations for the next insane bubble.  I am hoping, nay praying, that the Fed does not repeat the mistakes of earlier in the decade by keeping interest rates too low for too long.  I am highly skeptical, however, that the lessons of the immediate past have been learned.

In the meantime, this is great for me personally!  I am as long as I have ever been.  I have been buying the past month, albeit too early.  I expect this rally to last until January or February, then we will see.  I expect the first level of serious resistance at the 1020-1040 level for the S&P 500.  This is also fair value, given that I am using $70 as a normalized earnings number and applying a 15 price/earnings multiple.

At that level, I expect to start taking profits. 

Unless I change my mind and start taking profits sooner.  Or later.