There’s nothing to add to today’s market action, it speaks for itself. The market continues to break down at a stunning rate.

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There was a trigger from the Watchlist, it was a short trade of course, not common on this site. It was AAPL, which offered a gain of 6%. It looks like it could continue lower from here.

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There were some inverse ETF charts like DOG that were posted here on Sunday. They have been doing very well. I prefer this and SH to their Ultrashort counterparts, DXD and SDS. Less volatility. Of course, you get more juice in the Ultras. These could be considered on a pull back.

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I have a natural bias to the long side, but shorts are the only things working in this market, so I may as well embrace it. I do think we go lower from here.

Last night, I posted charts of the S&P 500 and the NASDAQ, going back to their origins and drawing some basic trendlines. The S&P 500 took out the bear market lows of 2002. We are now very close to the trendline from the 1987 crash.

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If we break that….wow! No need to fear it though, may as well try to profit from it.

Trade Ideas for 11/21/08:

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Good luck and good trading!