Time to Get Neutral

Another down day with financials leading the way again. It's not looking good for the market at the moment if you are bullish. 1375 Will be tested again on the S&P and I doubt it will hold up for long if there is renewed concern(over reaction) about the credit crisis. Banks getting downgraded make them ripe for puts as they are at or making new lows. I plan to diversify with some puts on MS tomorrow if the opportunity arises.

I got into puts on ANF, it finally broke the 70 level today, I entered early but it was a good entry at 69.50, and it ended up nearly a dollar lower. Too bad I didn't get filled with my anticipatory trade at 71. Oh well. My target is 65, with a break back above 70 signaling an exit.

I sold out of my SIRF, at a little over a 1% total loss, good from a loss standpoint but too bad it wasn't a gain. GRMN looks to have broken out so if there is a pull back to close to 50 I will take down a couple calls. RIO broke an up trend so it looks like a good entry for puts as well.

I definitely want to be selective and diversified right now because if we break 1375 I think we could see 1320 again. The only possibility to help that could be retreating oil, but it definitely has not broken its uptrend but USO looks to be sitting right at support at 100. Jeff Kohler mentioned that refiners are starting to get bought which could signal a pull back in oil coming. I'll keep that in mind as we progress here.

POT could be up for a long position again if it pulls back after this break out of a triangle.

we'll see what tomorrow brings. Hopefully large profits, or small losses.