Stuff

Realize that the market is doing exactly what it did last month... we lead down to a lower level The Thursday before options we dropped 200 some odd points options we traded up, then came to a little lower level on friday.... then MLK and those lower futures.

It's all going to be about the monolines.... my crystal ball says, the muni bonds will get bailed out... or someone will buy that stuff at 90 Cents on the Dollar... That happens tons of investment funds, and money markets will take a little hit. We will get some kind of bail out which will look good for a few hours, few days, few weeks.

Still S&P is going to continue to Downgrade CDO's to avoid negligence.

There will be fall out.... but it will cause a false short term bounce.....

In these situations I usually Lay-up....... I can bet the unknown, but I have a hard time in that transition from unknown to known... or misunderstood.

Not sure what to do yet. Being short and having no deal happen and S&P downgrade while short will be like a lotto ticket.

A full bail out will result in a 500 point rally.

Futures are up... some say, go short when the futures are up.