Market Outlook

Doug Kass said at 4:30p yesterday "I dramatically expanded my short book today"

All I can say is ouch! As you know, RF played shorts through minimum risk plays via SDS, so that will take "baby hits" instead of severae "ball hits". If you choose to buy, I would use 875 on the S&P as your stop point. There is also resistance at 890, so we need to move that, if we want to go above or at 900+.

I am really, really pissed I sold my PCX. I made 11% but now its near $6 in PM, ain't that a bitch! I am going to sell my CDNS calls near the open, expecting a big gain there for at least 50% but we will see. I also believe solar will be hot today, so keep an eye on it.

In conclusion, everyone and their brother was net short but RF. I mean everyone I know just about went net short at 875 yesterday and the "voices" said don't do it, just take a little off the table in case we retrace. The point is simply, when in doubt, trust your gut.