06/06/2010


We sold our puts and closed short positions on the close Friday. Although this market could still plunge lower, there is a clear divergence between the Dow/S&P and NASDAQ.

Typically when NASDAQ leads we rally. Most techs are well capitalized with low debt structures. We are currently very oversold, however in this type situation the cliff still lies ahead. Whether or not it is tomorrow, next week or next month, we are close to the abyss.

Looking to re-enter short positions as soon as we relieve the oversold condition.