Morning Update

To say that world markets are having a tough morning is an understatement. Japan is down about 10%, the S&P -2.4% Nasdaq  -2.6% and DOW down 2%.

Crude is trading around 97.24 -$4.00 and gold is down.

I wanted to touch base as the market is obviously at an extreme. It is to late to short ( with the exception of certain special situations perhaps). Bottom line my advice is as follows:

Don’t panic out of your longs as we may have to endure pain today and perhaps tomorrow. A blistering rally to the upside will happen in short order in my opinion. It might take a few days though.

If you have some of our shorts, I will most likely be looking to cover them sometime today or tomorrow on the panic dump.

Much of this action is panic and driven by huge margin calls in Japan, that will resolve soon.

Keep some liquidity ready so you will be able to trade the rally.

Some of my go names will be : AAPL, UYM and TNA Refiners should do well also as crude drops.

This too shall pass.This is when the market offers the greatest opportunities for big profits.

See you on the chat…..Joe

P.S. Our shorts are : BLK, FAZ (long) CPLA, FSYS, VIT, SOA, CATY, ROVI and ARMH

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