Well, so much for a Monday rally! Man, they are relentlessly punishing this market! And, unfortunately, rightfully so! This may be make or break time here, folks. We're going to get cracked hard all around, or we'll get another turnaround Tuesday and a snap back.
I'm gonna stay neutral. obviously longer term I feel STRONGLY that we are TOAST, and that the DOW sees 7500 before it ever sees 14,000 again (or probably 13,000, or maybe even 12,500!). But, as a trader I try to keep as neutral as I can day to day. Bear markets snap back like we had last week and if you aren't on your toes you get them broken when the elephant steps on them.
I have been watching and trading and analyzing the markets for over 10 years now. I have to tell you guys and gals that I have NEVER felt this kind of heaviness. Yes, we've had many steep declines and a couple of Bear markets, but there is a heaviness that is much more "in the know" in my belief. We very well may wake up one day and see 200+ points washed away from the S & P, and that 1000+ points on the DOW and 250 points on the Nasdaq. That's why I really don't see any safe havens in this market. Sometimes there isn't any "Bull Markets" somewhere!
Let's stay neutral. I hope it's turnaround Tuesday, it'll help us establish some positions soon in the market from the short side again.
In the meantime, trade SMART! The short class is and will rock in my view. SO far so good! That's why we leg into stuff so we have some exposure to the plays no matter what.
let's see what shakes and go from there manana!
Michael "Waxie" Parness