The index charts were screaming "buy!!" to me. That doesn't mean I'm dumping my gazillion equity puts, which I think have reasons of their own to fall. I have, however, bought into a largish call option on IWM this morning. Simply stated, when I look at the chart of the S&P 500 below, the technicals for a bounce are too compelling. I eagerly await the day when indexes are a "steal" to short again, but for now, I'm going to play this one long position.

I am selling selective puts right now, including RIMM, below (for a nice 80% profit over just a few days).

The same caveats as always……….take it as a contrary indicator………..call me a traitor………and so forth. I'm buying SPX calls. I think we're in for a bounce. And I'm going to try to have the discipline to stick with it for more than, oh, a day this time.

I have been relatively ham-handed this morning. I've got a ton of profits, but I bailed on my $RUT puts about $5,000 too early (e.g. left money on the table). I am, as a bear, nervously watching the $INDU (which is at new yearly lows this morning) approaching its 38.2% retracement level. It's a fantastic morning, but it's unnerving.

It's especially difficult for me since the $RUT seems to have plenty of downside left in it. What to do, what to do!!!