Strategy Central

[farooq]

I am still holding my 39 puts but they are bought as insurance, I am short calls on QQQQ which I will cover tomorrow after noon.
I might not buy them to close, I may make them a spread long October and short June, and I can do it for 2-3 months.
I am uneasy with severity of drop. Seems to me computers are trading only. S&P Was slaughtered today. My 3 Theories about drop are followings.
1- Market is discounting that republican can not win congress any more; I think they will surprise the market. They might win again. I am a democrat but I think they are in leadership crisis. Dean is best to lead but the most influential group AIPAC hate him.
2- We are coming out of Iraq earlier then expected and some one wants to go long big way so they are taking all stops out.
3- If it is real slow down then we can hit 964 on S&P before moving up.


Of course I do not know future and I was wrong many times, JMHOP.

Farooq