Early 'Sell the News' Reaction Kicking In By Rev Shark RealMoney.com Contributor 9/17/2007 12:25 PM EDT

Last week I was early in predicting that a "sell the news" reaction might kick in prior to the actual Fed news, but it does look like we are getting a taste of that today.

Although the selling has not been aggressive or panicky, it has been straight down all morning, and the dip-buyers are showing no interest.

So many folks seem to be expecting a negative reaction to the Fed news tomorrow, that traders are probably trying to get in front of that potential move today.

Maybe that will relieve the pressure for a more dramatic "sell the news" reaction tomorrow, but we have an almost equal split right now between those who expect a quarter-point cut and those looking for a half point. Someone is going to be disappointed and that is going to give us so volatility.

I am mainly sitting on the sidelines with a big cash position. I see no edge in taking positions into the Fed announcement.

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James "Rev Shark" De Porre is the founder and CEO of Shark Asset Management, an SEC-registered investment advisory firm. He also operates sharkinvesting.com, an interactive online community that serves and educates active investors. De Porre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children.Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here to send him an email.

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