Like I wrote the other day the general market was getting toppy with no good news. There is plenty of bad news from the fed dropping short term rates by 50 basis points to lending $2 billion dollars to four banks. What a coincidence that $2 billion was invested by Bank of America into Countrywide. Was there a back end deal by the the feds to help bail out Countrywide?

So the market is heading down and will test Dow 12900 and NASDAQ 2440. There is good volume to drop another 2% before we see any support.

Continue to buy QID or DXD. You can short AAPL and CROX. FXI did an island reversal and will drop another 10 points to 131.87 to fill the gap.