Update 9/25/09

Major follow-through today as the indices continued sliding, with the S&P hitting an intraday low of 1046 before reclaiming the 1050 level by the close. After so much selling, the bulls need to see a bounce tomorrow to keep alive the possibility of higher highs.

All of our remaining longs were sold, with only WFR profitable, and we bought 4 new short positions. If you elected a lot of short positions, consider taking a bit of profit near tomorrow's open. But not too much. Although a bounce is "expected," if the market really did make a top on Wednesday, it could skip the bounce and just keep heading down. Recall that the reverse situation occurred at the March lows. Back then, after three weeks of relentless selling, the market abruptly bounced and headed upward, not looking back once during a huge run from 680 to 800:

Current Holdings
Ticker	Basis	Closing Price	Perf.	Sell-Stop	Addl Exit Guideline	Chart
FXP	8.96	9.65	+7.7%	8.77	N/A	Chart
SRS	9.56	10.05	+5.1%	8.71	N/A	Chart
DUG	14.31	14.74	+3.0%	13.71	N/A	Chart
SKF	25.11	25.74	+2.5%	23.58	N/A	Chart
QID	23.17	23.21	+0.2%	22.06	N/A	Chart
TWM	28.06	28.82	+2.7%	26.65	N/A	Chart

Nothing for tomorrow; waiting for setups to develop.