Never one to stand on principle and be run over by a train we will, as a trading tactic, hedge our index longs tomorrow (Friday) and wait to see if the basing point stop is taken out. We don’t really think this trend has run its course, but there are some negative indications, not the least of which is today’s downdraft. Volume picked up noticeably the last couple of days and there was a suspicious volume spike at the top. All your longs (and ours) should be well stopped up. If in doubt as to placement write and ask. We reviewed a quantity of ETFs and issues we have previously mentioned here and saw little if anything of a reflection of the move in the Dow — but better safe than sorry.
In our opinion too many people are baying for a major downwave here for that to happen. And besides that it’s not October 19th yet.