In spite of the numerous posts, I am really busy here, so I haven't had any chance to read any of the comments. It's pretty humbling to jump up and down about being bullish on the NDX yesterday when, yet again, the market is falling to pieces. Of all people, you think I wouldn't succumb to any bullish temptations. But I did, and it cost me.

Not to say I entered the day a pure bull. I still had about 40 puts, almost all of which (obviously) are doing well today. But I got hit in the gut pretty hard with some of my bullish players, and much worse, the opportunity cost of NOT taking advantage of the marvelous run-up in the $RUT yesterday afternoon was regretable.

Maybe the lack of sleep is starting to affect my judgment!

I am none too pleased with myself. Good for me for going long gold. Shame on me for not having faith in the potential of the bear market. Today is crucial. Are we going to break Monday's lows? If we do, look out below.

Care to discuss what the implications of this are?

Well, the gold longs are doing fantastic. My QLD long got blown out of the water. Naturally it's a bit painful for a bear with no index positions to see the market still trying to find a bottom. But at this juncture, I am simply not comfortable pursuing any more index puts. To my mind, the risk is simply too high, and I'd rather focus on better opportunities.

So far, so good. My bullish (yes, you read that right; bullish) proclamations on gold and oil yesterday are working out pretty well.