How's this for a trading strategy? Go long on the close of any Monday prior to a Tuesday on which Ben Bernanke is scheduled to speak. The past two Tuesdays, the trade worked like a charm. Admittedly last Tuesday's announcement was unscheduled (every strategy has its flaws). Hard to backtest, but it could be a huge winner.
Over the last week the Fed has started swapping roughly a quarter trillion dollars of cash and good paper for the most toxic paper on the planet, orchestrated an "Under New Management" sign for Bear Stearns (tagline: Same Great Prices, Same Great Service!!), and probably saved democratic capitalism as we know it (or at least knew it).Here's my question for readers: Is this the biggest trade ever, and is Ben Bernanke the biggest trader ever? If not, who/what is?