GO TO CASH!!

The market has broken down below its 50 day MA with about a half hour to go until the close. This was anticipated due to the conditions pointed out in the last posting. Many individual stocks have moved below this important trend indicator. Now is the time to make sure you have a large cash position. It is not the time to try to overcome any major draw downs. If you try to get back your losses right now, you will inevitably increase the draw down. The trade here is to wait for the next little rally and look to buy some puts. Although the overall trend hasn't turned completely down, short term put options will probably be the best way to make some money in the short run...but not until we get a little rally. For those that want to just trade calls or buy the stock, you would want to sit back and wait for this correction to complete. There is a support area at 1040 on the S&P 500 where we could get a little bounce. In the short run, we'll look to see if the 1000 area holds as support (I don't expect the 1040 area will hold). Beyond that, we could ultimately end up testing the 950 level. This could get ugly.