Second-worst Stock Market day of 2007

Today was a bad day. I broke my rules and held on to my 3 losers thinking I can regain today. Nope. Look at the above chart. Looks like it will get uglier before it gets better. We’ve been seeing increase volatility for the past 6 weeks. Puts are rather expensive right now.

I’ll be waiting for this downdraft to slow down and will be going long on some December SPX 1400 Calls. Right now they are relatively cheap, but theirs no telling how far we have to go down. The next weak support level is around 1400, but more strong support at 1225. I don’t think we’ll see those levels though. I suspect we won’t even hit the 1400 mark. If it breaches 1400 then we’ll be testing 1225 in no time.

Follow the Rules. Don’t try to outsmart the market. Leave with your profits, small losses, and pants. The big gains will come at the right time.

Overall sentiment: sh*t!