Ohhhhhh this market is sure a cutie-pie, isn't it? 😐 Every single day this week was a triple-point move on the Dow (and that's understating it). I shall be decompressing until late Saturday before I do a post.

In the meantime, I have re-introduced live chat on its own page, which is here. You can access it at any time by clicking the Live Chat link in the upper-right corner. Hopefuly this will give us the best of both worlds: chat for those who want it, but the lack of chat on the main page for those who don't.

I think all the talk about a short selling ban on Monday has people panicked. I've acquired positions in QLD, SSO, and DBA to play it safe. All puts and shorts remain in place.

My spats at bullishness over the past week have cost me dearly. Thank God for all these shorts and puts I have. May the great god Ursa forgive me for every buying stocks. I won't let it happen again.

Now let me make this important point: from the standpoint of support and resistance, nothing exists on the S&P until around 450. The price levels we are at now were all established during the virtually uninterrupted run-up from November 1994 through January 1996. There is very little price concentration anywhere near us now.

Aww, shoot, there's that bug again. You have to click "Present" to see the chart with the most recent bar. Anyway. The point is that there it's a long way until we get a "floor". It's easy to get caught up in the day to day machinations of the market. But remember this: it's all about support and resistance. And we'll have to fall another 40% from these levels before we get something to stand upon.

Now that I've managed to push my IQ back into the triple digits and am not buying stuff anymore, I'm pleased to see the failure of today's ES to launch off its inverted head and shoulders. This is a good sign for the bears. I'm short 30 ES at 766.

My suggestion on buying DIG yesterday was ill-conceived, obviously. I lost on that one, and in a market like this, bullish notions should be backed by staggering amounts of technical evidence.

Looking at OIH (on which I am still the unhappy owner of some call options I bought yesterday), my view is actually pretty dark on energy. I do think OIH will move higher, but not much. I think it'll fight its way back to about 78.

The bigger picture on OIH shows why; there is tremendous downward momentum and overhead supply.

It is true that the price of crude oil is now so low that it is no longer economically feasible for many countries to even pull it out of the ground. Thus, supply will fall and prices will stabilize. But these shifts move slowly, and I was a fool to think buying OIH (or DIG) was a good idea at this stage. I'm sorry.