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My head like every trader’s head is still reeling from the moves we have had every day this week. Today I saw the largest range and largest one day move in terms of points in the RUT ever to have occurred – it may be in percentage too, but I’m not going to go research that. Unbelievable.

Tonight the government is having an emergency meeting with congress/Paulson/Bernanke/The President and whoever else to find a solution or make legislation to backstop this crisis.

Its just a coincidence that the Federal Banks infused the market with over 200 billion today + this meeting = fucking over people with options expiration tomorrow.

You may or may not have heard, but two money market funds lost value this week due to exposure to Lehman Brothers debt. The two funds that have broken a dollar so far are: Putnam Money Market Fund and the Reserve Primary money market fund. This is the reason for the increasing panic and this is the likely reason for the emergency meeting tonight because they know when one of the safest investment vehicles loses 3% and when it was only the 2nd time ever a money market fund lost any money (now third time ever), the government wants to step in and back stop this or it could literally cause an outflow of epic proportions.

I had 0 exposure to the leveraged index funds today because I cashed out making a redunkulous amount of money yesterday and didn’t want to risk losing it – good move. However, I did play SKF, and AAPL calls intraday. Both trades were highly successful considering the volatility.

I didn’t want to commit to a trade today at the close or hold overnight with the news on the horizon. I’m a believer once I see things turn. They haven’t turned yet despite today’s massive move. I’ll get to making a new stock list as things may be changing, but the three I mentioned today still are good candidates. I’m in 100% cash – hopefully not losing 3%.

PRGO, PNR, and BWLD

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