Bottom line….is we’re back at Thursday’s lows before all the latest shenanigans!.  Today was just another historic headline day in terms of ‘records’ as the SPX sold off 9%.   Simply, there is little positive to say about this market as the impact of government intervention to improve liquidity is not making a difference.   So far, credit markets are showing only little slight improvements.  As we pointed out this week until it does we can’t move forward along with the other 2 points of finding leadership/ earnings visibility.    Simply, negative noise has spread to recession noise because of unknown visibility on the macro economy.   It seems we’re of the minority this week while the majority has been pumping a bottom, buy this market since the weekend and joyfully proclaiming their wisdom after, earlier this week.     Instead, we’ve kept a level head ( hell, even threw a OIH short today from $99 ) and only spoke of preparing and noting what we need to see before diving in.  Well, wisdom shenanigans have lost investors at least a sleeve off their shirts , as stocks tumble hard the past few days.   All the bullets shot by the Calvary are a step towards better days, but right now it’s still seemingly one step forward, 2 steps back. What we need is 2 steps forward  at least and this is what in part,  we pointed out yesterday…”Follow- through is key”. There is no point risking building positions back into the market until this changes. The other important part we discussed yesterday was for 2 days we did not see end of day, “ forced selling” from insiders/ hedgies/ mutual fund redemptions due to margin etc.    Well, it seems this was only an orchestrated move of allowing the markets to run fast upwards, move prices higher to only get out at better prices.   The forced selling resumed in the last hour in a fast and furious manner signalling this routine is not over!!.   This is the biggest negative of the day!.    This is only gives the retail investor more reason to sell end of the day, anticipation of what the big boys will do takes over and than we have everyone selling the market off.

Due to the crazy volatility, it is essential to stick to intraday trades, considering shares to short are difficult to find in many a commodity play,  it is best to stick to things like the OIH that are very liquid when you see action like today.   When, not if the market rallies again,  we remind to go after the high-beta stocks for the day or just play something the SSO (ultra S&P).   You can keep away from individual stocks and just play these 2 examples, both ways.   It is seemingly useless to build long positions slowly in increments as so many talking heads suggest.    You will lose confidence quite quickly after days like this following this strategy.   You will make more money in a 'real rally' sooner than later,  you do not need to catch the bottom in a stock(s) now.