In preparation for next week's Fed meeting, I've cut out some of my current loser's on today's runup. I expect that the Fed will only do some minor adjusting (quarter point anyone?), if anything at all. I believe the expectations are way to high, and some people are going to get spanked if they don't take a defensive position.

It seems the expectation is that the Fed will cut a half point, and I really don't see how the Fed could do that without putting additional downward pressure on the dollar, and they don't want to see a currency slide. Bernanke is really walking a tightrope here, step in to help the markets and let the dollar slide, (which would come back to get the markets anyways) or stay out of the markets and keep an eye on some very real short term pain. If you watch how the dollars performed, it's been sinking in against all the major currencies as the markets have started to price in an interest rate cut. I really don't see more than a quarter point cut coming here.

So back to my plans, I'll be liquidating more nonperformer's on any rises in the next few days, possibly buying some short stocks (QID, TWM), and getting some cash ready to buy after the drop next week.