Interesting day and thankfully, for the sanity of RF, the market dipped. I took off some of my short exposure by covering the CSCO short and selling my FAZ, but still have a short position on AAPL and I am long ultrashorts via SRS, QID, and SDS.
FTK had a meltdown after a conference call but I am holding incase we gap up. Fund managers are talking 10,000 on the DOW by end of summer, which is crazy but it can happen. Stress test results come up here soon (5pm) so it will be interesting to see how the market reacts. Wells Fargo just announced they will be offering $6M in new stock, to be priced at $20-22.50.
A lot of the pros are on the sidelines because noone knows what will happen. I personally believe it's over played and the news is already in but we shall see. My best advice is to keep cash and buy "bigger" companies which low debt levels. The small caps that I play rip hard but I only play a tiny bit in them. They can roll over hard in a bad market; therefore, I don't want to get hit hard because of this.
In conclusion, stick to your gut. This morning the market tried to influence me, opening up 929 on the S&P and I sold my SKF/FAZ for $1100 loss and covered my CSCO short for a $0. The whole time I felt we were going down and my gut told me so, while the CNBC cheerleaders and charists are saying we are going to 950. Anyways, at 9:40a, I loaded up on FAZ and re-shorted CSCO, even though the market was at 929, because I trusted my gut. As a result, the orginial losses are down to almost nothing. For today, I lost a tad because of some option values but would have lost a KILLING if I wasn't net short. Good luck and catch you tomorrow, take care.
Update 4:36pm : MS now is issuing $2 in equity
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