Market churn at the lows but not a selling climax bottom, but, 1-3 day pop back bounce of 5% - 7.5% min. greater probability than not. SPY B2 price tag of $122.50 hit perfectly! If not for weekend, current long allocation would have been increased. XLF and other financials still have the greatest short cover upside potential but longer term sell rallies of 15%-30% in this sector as more statements of "well capitalized" reassurance are blathered about!

More of the same.. sell on rally mantra is so perverse that any 2.5% move off of an intra-day low is "close enough"! Most local price and sentiment indicators are extreme enough to the point that they've almost lost their value as contrarian due to the lack of large block volume and range expansion, Without this last ingredient... forget about it!!!

1-2 day suckers rally or short term low??? 1282-1293 = first test. A daily close above ~1295 "should" help get the shorts to cover, a failure at that level "should" bring a test back down to the ~ 1255-1260. Straight long position now in effect w/out hedge although 1335-1340 = first "potential" re-load on the straight short Rydex EOD system.

Every body calling for the same bounce is like too many cooks spoiling the soup! Long poistions in Rydex approaching close out and flat again or possible reverse back to short. Long term estimations that 2003-02 lows will be flushed outmay be here sooner than previously thought.

Market setting up for oversold bounce, 2.5%-5% reversion potential. Long term Bear market is unquestionable, near term risk management always #1 priority and profit protection. Rydex EOD short position reduced again to ~30%, EEM,EFA,FXI,XLE & XLB shorts still on, look to cover and /or reverse depending on price action next 1-5 days. Bear market puke session potential requires very limited long exposure below ~1380 on the S&P