Don’t fight the tape

USB announces a $11.9 bn and Lehman issues more $4 bn more stock to keep them afloat. The market treats this like it’s just wonderful news and homebuilder and financial indexes soared, closing up 7%. Madness.

When the market is, in my view, not rational and / or acting nonsensical then the best thing I can do is stop trading until it does make sense to me.

So, my plan is to wait out this rally (not chase it) then when it looks toppy and reality is starting to intrude again, buy more puts.