Equity Market Comment - 6/12/2008

It continues to appear as if the market is attempting to put some type of short term low into place but seems to be a bit more difficult that it usually is. We need more confirmation of this low before aggressive traders can even think about playing the possible rally which could be 30 to 40 points on the S&P 500.

Short term traders should currently be 75% flat in their trading account and still be holding a 25% short or put option position. The reason I continue to hold onto this 25% on the short side is the fact that Fridays have become the most negative day of the week and there is also an outside chance that this leg down we are currently in will be a 1.618 ratio and not just an equal length.