Covering/Buying: SP500 Levels Into The Close...

Realizing that 2009 YTD performance anxieties are heightening on the way down here, my best advice is to take a deep breath and patiently start to cover/buy all the way down to the 803 line in the SP500.

The VIX is only up +4% here at 46.34, which is far away from the aneurisms associated with Q4 of 2008, when volatility was 40-45% higher. Provided that the VIX stays in check under the 53.96 line, I think this is a very trade-able SP500 range that we can nestle into. See chart below for the Trade(dotted red) and Trend (thick red) lines that we could easily bounce to.

Keith R. McCullough
CEO / Chief Investment Officer