Morning Jibberish

Great market to be a bear. We're going lower again this morning.

Funny. On the big bounce off the lows yesterday I took a lot of risk of the table- covering profitable shorts. Smart to control your risk and protect hard "earned" gains. Thought we would get a bounce to retest 1490 on the SPX from below. Thing is, as I laid in the bathtub last night, I started thinking about the likelihood of a total rout in the indices. If we were ever to have some sort of crash-like event (and it's always a low probability) now would be the time.

We could literally fall off the edge of the table. I've had this anxious feeling all week in watching the tape. If the August lows don't hold watch out.

Now set to open lower (and with my decision yesterday afternoon not looking so smart) the question is how aggressive I want to get in chasing it down this morning. Have a list of about fifteen short candidates which I'll start nibbling at depending on pricing and I think I'll short the cubes (QQQQ) for the first time in a long time. That's really an opportunity I've been waiting for. Technology has been the port in the storm for the bulls. Once tech gets going to the downside we are in for some serious weakness. Saw the first signs of that yesterday. The mo-mo stocks were uniformly weak.

Speaking of mo-mo, I shorted AMZN yesterday. Small position affords me the luxury of not caring what it does in the next few sessions unless it approaches my stop price way overhead. Seems very unlikely. Meanwhile, if I'm right it's going to go much, much lower.

Just thinking out loud here but the point is that I would advise you to protect yourself. With the increasing volatility we are apt to swing violently in either direction. Even if we are going lower it likely won't happen all at once. Don't trust a wounded bull. It still has horns. Protect your gains!

But also keep in mind that if on one of these big down days we don't get the predictable afternoon bounce we could easily go down 500 points. Just something to think about.