Buy This Dip?

The market pulled back fairly decently today, the S&P lost about 4%. This was the fast move I was thinking may happen and the reason I kept my hedge on. The decision to sell some positions on Friday was a good one, the materials and energy sector pulled back across the board by quite a bit which is where a majority of my positions are. The dilemma is that I have longer dated options so I could hold them through this down draft as I don't feel like this is a huge cause for concern just some decent profit taking. My hedge cut my losses in half compared not having it on at all which is key. Having smaller draw downs and larger increases is what it is all about. I am close to cutting my PCU position as it is right at my loss limit but still holding a support level. I'll give it a chance to hold but if it doesn't I will cut the loss.

It was hard to not go out and buy everything in sight today as most things had very nice pull backs to support however like I said before we could get down to 800 if we break 850 which we have so I am waiting to see what the market does, if we get some buying I will likely buy as well but I may sit on my hands until earnings season is done and we get more clear info on the state of the economy.

Total Return for 2009: 126%