FINALLY!

As soon as the market wiped out Tuesday's gains, I knew we were going lower. I probably would have built a bigger position near Tuesday's high had I not been spooked by the strong rally on Monday and Tuesday. The question now on everybody's mind is what do we expect next...well that is the question on my mind too, but here are some ideas. The next support area is around 1040 on the S&P 500. We might get there tomorrow if the unemployment number isn't good and the fear level amongst the professionals continues to rise. There could also be a snap back rally. If you have bearish positions, you should have taken some profits off the table after today's move. If you didn't take any money off the table, you are exhibiting the behavior of an amateur. If you didn't take profits today, look to take some at the market open tomorrow. I'm not talking about selling your entire position, just part of it. You can't get too greedy after a 270 point drop. As long as we don't gap down at the open, you could look at some possible put option trades on the DIA, SPY, or QQQQ. If we do rally for a few days, those trades would likely still work out. I would take a smaller position size and not use a stop. If we do gap down tomorrow, I wouldn't chase it. Be patient and wait for a rally. If you want a bullish trade recommendation, keep an eye on RIMM. I don't know if I would get into any bullish trades right now...but if the market does start to rally up a bit, this would be a stock to consider. BBY is getting pretty far away from its 50 day MA. If you haven't taken any profits on that bearish trade recommendation, you need to do so soon! Have a good weekend.