IS THE WORLD COMING TO AN END?

This was the drop that we were anticipating over the last two weeks. Near the last hour of the day it looked like we would close below that key 1120 support level. This would have ensured a quick drop to that next support level around 1040. With the late session rally back above 1120, it looks like the market could stage a snap back rally tomorrow...or at least in the near future. These snap back rallies are normal and almost always follow a big drop in the market. Any rally would likely provide another opportunity to make money. If you didn't take profits on any of your bearish positions today, you could end up giving that profit back. Professionals take profits...especially on a big down day (or two big down days). Pigs get slaughtered so don't be a pig. I don't expect any potential snap back rally to last long, but you do have to respect the fact that the market could rally back up to that 1200 area. I am expecting a larger rally in the market to take place, but I don't think that will happen until we test the 1040 support area. For those looking for a new trade, my advice would be to be patient. I'd wait for a small rally or a close below 1120. For those looking to jump into gold and silver, you should also be patient. All I heard today on CNBC was to buy gold, buy gold, buy gold. When you hear a lot of people telling you to buy something (after a big drop), it usually means that it isn't done dropping. Stock usually bottom when the buying interest is low....or in other words, the buying confidence is low. As long as the dollar keeps gaining strength, it is going to be harder for gold (and other commodities like silver and oil) to mount any significant rally. As the market nears that 1040 area, I would then look at gold and silver for a potential bullish trade. At that point I could see the market rallying, commodities rallying, and the dollar correcting. For those that made money on this latest drop, please send me your success stories. As always, is doesn't matter if those success stories were from my blog picks or your own trades.