Market Selling Part Deux

Don't read too much into the open this morning. It looks like it will be fairly quiet. The market may slosh a bit, but I won't be surprised if it takes the first hour for the market to even begin to decide what it wants to do today.

8:35 am MT: The market may be tipping its hand right now. A brief rally just a moment ago was just met with a round of selling. Traders are still doing battle, so it's not over yet, but the Bears appear to have a slight edge right now.

12:45 pm MT: The market is confirming today's selling, and the Dow broke a Double Top. The Dow went through the 12,750 - 12,700 zone and immediately dumped to 12,600, which was my next target. Right now the Dow is at 12,600 and trying to hold the 50dma.

I stopped the MOS puts early in the day for a 12% loss. I scratched the LM puts early in the day at breakeven. I locked and walked on the MS puts for a 19.5% gain. I locked and walked on the RTH puts for a small 5% gain. I locked and walked on the MER puts for a 32.5% gain. I also did two intra-day put swings on the DIA and the SPY. I made an 8.5% profit on the DIA puts intra-day, and I made an 11% profit on the SPY puts intra-day.

I am also scaling out of my last put, which is FDX. I have made about 17% profit on the trade so far. I am going stock hunting right now to see what I want to do before the close.

1:00 pm MT: Here is a comment from the news on why the market sold off intra-day. "Market participants are concerned over the negative FOMC meeting minutes, with the Fed cutting its growth forecast and raising its inflation expectations. Several FOMC members said that it was unlikely that they will ease policy in the near term, even if the economy sees a contraction." Ok, seriously folks.....Is there anyone in the know universe that couldn't see that one coming?!? The Fed cut rates way too much and over-fixated on the short end of the Yield Curve, which hyper-stimulated an already inflationary Energy and Commodity area, which has now attenuated Consumer Spending, and left the Fed with no more ammo to shoot at what they shouldn't have been shooting at in the first place!!!.........Aye yi yi yaaooww! How could the entire galactic universe of all known life forms, including sensient and non-sensient beings NOT see that one coming? Sheesh, I don't know what to say anymore. Traders sold off on that news?? Well, it is what it is. My job is to just trade it and not question it......

1:20 pm MT: by the way, AAPL is headed towards the 30dma.....

1:50 pm MT: I have gone through about 200 stocks and my own watchlist, and I'm just not in the mood to do any calls or puts on anything I see. I don't feel like Cherry Picking calls right now, it doesn't look right. And I want some kind of intra-day bounce tomorrow before I potentially do another round of put trades. So I'm just sitting tight into the close.

7:30 pm MT: Market Wrap: The Dow broke a small Double Top and headed right to the 12,600 support that I posted yesterday. If the Dow doesn't hold 12,600 look for 12,300. The SPX is sitting right on the 30dma, if this area doesn't hold, look for 1,370. The Naz is probably headed for 2,430.

Here are some interesting Bearish stocks (that might not be too far into a downswing) if the market continues selling for another day or two: ADM, PNC (target 64.50), TRV (possible target of 48), STT (target 68, then 66), DIA (if today's lows don't hold, target 123), KO, AGN, KMB, STJ, ALL, and UTX. Also: VLO and SUN may roll down if the Energy sector finally pulls back.

Note: the DXD is the short Dow and it broke out of a Double Bottom with heavy volume today.

Here are some interesting Bullish stocks if the market pulls back and they hold supports: VIP, SINA, VRSN, TIF, and AAPL (right at the 30dma).

Note: LDK is very strong, even in the face of market selling.

I didn't include any Energy or Commodity stocks on the bullish watch because they look like they are just beginning to pull back. It looks like we will possibly have another couple of days of pulling back in those areas.