Making that morning long buy in the indexes. The indexes dropped about 5.6% from the 10:45 pricing. OUCH! That hurt me. Plus CSCO reported numbers that were ok, but Mr. Conference Call himself, John Chambers, gave unglorious guidance that sent CSCO down 8% afterhours. Now lets just review, CSCO was already down roughly 30% off its November 2007 high, now its down 37%. They beat the crap out of CSCO when it was already face down in the gutter. I know the market is in a downtrend, but I wanted to take a shot this morning. Dumb move, I should’ve waited till tomorrow morning where we will likely gap down and that might be the end of this move before another snap back rally starts.

That CME chart I posted the other night. Boom CME and NMX got slammed today DOJ news that their business practices are unfair.

The intraday trades were ok aside from the index debacle.

LOCM - In @ 4.12, out @ 4.47 for 8% gain, however, there was more to be had and really next time I’m selling the spikes.

CPSL - Out @ 5.17 for a 5% loss. I was hopeful for 1 bar too long.

CDS - Out @ 7.42 for a 4% loss, but kept CDS in another account based on some other trading thesis.

BKUNA - Held overnight.

I’ll likely hang onto my index longs tomorrow expecting a gap to close. Futures are probably going to look ugly tomorrow which is the way I like it. Some moves I may consider on the gap down (and around 10:30) will call options or buying the leveraged ETF’s. We’ll see though.

The transports continue to be doing well, which usually lead the market. Transports led us down way early and was pointed out by many TA’s online as a reason NOT to trust the 2007 climb. Now Transports are performing though.

I’ve definitely held onto my long bias waaaay too long in the face of everything saying we’re going further down. I still don’t think we retest the lows as its too perfect of a setup, but hey maybe we do.

Thanks for reading

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