This Afternoon

We have just put in a higher low on the market . If the spoos do not hold 819 -805 is the next support. The trend is dwn still. We have been down for 6 straight days this is the seventh. We are getting close to a real break on the down side so keep your powder dry. Meridith Whitney is very negative on banks, with WFC as her best choice for a short . She likes AXP at 15. This is no time to catch a falling knife . Wait for exhaustion sell off similar but worse then What we saw this morning . Be carefull doing a contra side trade . Look for a hammer or a shooting star before entering a trade. In Contra trades you have to take profits quickly. At least sell or buy half and hope you are wrong. Then put a stop order in to protect yoursef .I will be back on Tuesday. I will discuss reverse scale trading when I get back. Vix is again above 50, and we are getting new tick lows everyday. Volume is light right know , be careful during lunch time as volume decreases and sellers walk away for lunch.Good luck. Regards, Frank