AS CLOSE AS YOU CAN GET

We rallied up to 12,841 on the Dow today...just 35 points from that 12,876 high. Once it reached 12,841, it reversed and started to sell off. There was some buying at the end of the day, but the indexes still closed down. I don't know if we are going to drop here or break out from here. I could make almost an equal argument for both. All I know is that the reward to risk is fantastic right here for a bearish trade. I bought puts at the close on SPY, DIA, APOL, and MA. I bought calls on TZA and FAZ. The FAZ calls were due to the big sell off in WFC and STT. The financial stocks are looking vulnerable to another drop. The plan on these trades is to hold the bearish trades if we drop lower or stop out of them if the Dow moves above 12,876. I won't lose much if we go higher and I could make a killing if we drop lower...even if it is just an average drop. I just love that reward to risk. We'll see if the sellers can gain any strength on Friday.