I don’t know about you, but the Wall Street whining has got to stop. They continually beg for interest rate cuts only to punish the market when the Federal Reserve Chairman, Ben Bernanke, finally taps out and gives into their demands.

What’s worse is that expectations for another cut are just around the corner. I know I’ve said this a million times, but we are on an unsustainable path here. Cheap credit is what got us into this subprime mess in the first place. Handing out a quick fix stimulus package is not going to solve our problems either.

So, what do we do?

Well my friends, with the retirement portfolio, we’ll continue to shift assets into fixed income and safer investment vehicles. In our individual investment portfolios in the short-term, look to score big on short and put option plays.

Right now the major indices are at a crossroads. With the Dow Jones Industrial Average on a three-year weekly chart we are just beginning to see a slight bounce in price. After touching down on the major support line near 11,500, the index will probably bounce to 12,750 and then rollover to complete the right shoulder of the bearish head and shoulders pattern. Once we get to that point in time, we could see the Dow bottom out near 11,000.

So, the dilemma we face is whether or not to jump in early to short momentum-drained equities or to wait just a little longer for the perfect setup to occur.

In a majority of the stocks I’ve looked at over the past two days, there is an all too common technical setup referred to as the reversal hammer. Basically, the stock will start out at a specific price during the week, collapse, and then claw its way back just below the opening price for that week. What this tells us is that the bears were temporarily tapped out and bulls came in en force at the last second to save the ship from drowning. It’s usually a sign of more short-term upside.

Now, this makes sense given that I just said we’d be looking at the possibility of the Dow getting a good bounce to 12,750. Let’s see what happens…