It looks like the futures are showing a bad day tomorrow at least for the open. I’m never excited if I’m short, to see the futures down this hard. As I write, Dow futures -286, NDX futures -40, and SPX futures down -35.

Like I said, all last week, “Short the strength.” I’m currently heavily short with every dollar possible except for my long position in QCOR which has bucked the tape lately. I’m up 21% in QCOR since the buy and would have been more if I just stuck in the position instead of timing it.

I love biotech. Really love it right now. There are many stocks showing excellent signs of long term trending potential once we get through this bottoming process which could start sometime in October or earlier.

I know there has to be a lot of people checking the futures tonight after the Lehman Brothers deal fell through and now sources from all over are talking that Lehman is going to file for bankruptcy. A secondary deal appears to be in the works for Bank of America interested in buying Merril Lynch. I think that is a brilliant move if they can pull it off.

What I want to know is if you are short, are you fading the gap down tomorrow or selling into it?
I’m not sure what I want to do. Staring 5% in the face on the open is pretty tantalizing.

If you are long, are you getting more long tomorrow, selling, or waiting for a better buying opportunity?

Thanks for reading

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