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The big dollars were positioned in the SPX (9.4%), NDX (7%), and the RUT (8.4%). I’ve been heavily short for a few days and hung in there through the little fake out that happened last week. It is so important to be on the right side of days like today because if you are not your year could be fucked. Today was one of my best trading days as measured by amount of money made. However, I’m still not back to my account highs. Another day like today though, and I’ll eclipse them. In case you missed it the Dow closed down 500 points – some are saying, “Black Monday.” Lets not forget though “Black Tuesday” was equally terrible and the market conditions right now don’t support the typical bounce I’d look for right away after a day like today. Moreover, you will likely hear about the VIX/VXN, VXO, TRIN, you name it. Markets can remain oversold longer than you can remain solvent.

Short the strength has been my mantra as soon as I saw the market was not acting correctly in August and early September and I hope in some way readers of this blog were able to avoid today’s action or profit from these warnings.

I made a few trades this morning and they included buying SKF and selling QCOR. I bought SKF @ 119 and still have it. QCOR I didn’t want to sell, but I felt it was appropriate considering the market situation and I’ll look to buy it back. I went from being up 21% this morning to selling out with a 9% gain. Still nice, but I should have sold on the upper BB penetration. Eh.

At the close I trimmed back my index shorts, but kept the majority ON. I probably shifted from being 100% fully invested short with every investable penny I have, to being 75% short with every investable penny I have.

I will likely cover shorts into weakness tomorrow morning.

Late edit: Holding SDS, TWM, SKF, MZZ, QID, and RYVNX, RYIRX, RYTPX.

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