I don’t know if they meant to do it or it is just a lucky side effect, but the PPT has basically started a new economic stimulus package, and I for one would like to thank them. Not only have they started giving away money again, they have decided to give money directly to us, traders.

Monday morning, after the official Fannie/Freddie news, the stock futures were going parabolic and I was making my little list of long positions I wanted to unload and short positions I wanted to initiate and I thought to myself “I should really get the PPT a gift or something” because they have been so generous.

These moves by the Fed and the Treasury have been nothing less than pure gifts to traders.

It reminds one of back a few years ago, the Federal Reserve with Greenspan leading the way would cut interest rates and the market would rally. This move was telegraphed way in advance to all the traders and yet time and time again it was still tradable. And not only that, but you could fade that rally every time and every time you could take money going the other way. Now the same thing is happening as the Fed and the Treasury are sticking their noses into the market and euthanizing financial institutions. These are trading gifts from above and I hope all of you are getting yours.

Now please don’t let me stop you from being all indignant about how the US has gone all commie on us. I love reading all of the funny blog post, they crack me up, but be sure that we traders are the real winners here. Not investors, look at Bear and Fannie and Freddie stock holders, they all lost everything and the traders that were astute enough to short them were given a gift by the PPT. But all we had to do was fade these rallies and sit back and collect the gift from Mother Market. The trade has worked every time. The opening of the Discount Window, inter-meeting Fed rate cuts, selling Bear to JP Morgan, and the whole Freddie/Fannie thing. Fade these rallies.

Now if these opportunities have come and gone and you have failed to capitalize, do not fret my brothers and sisters for right now they are in a room somewhere orchestrating the orderly demise of WaMu and the Brothers. And on the fateful day when Washington Mutual or Lehman shareholders are whipped out, you should think to yourself “man, I really should get the PPT a really nice gift”, let’s face it they are giving you one.