funny stuff: The Dow dropped more than one would have expected today. What we're seeing is extremely rash behaviour on part of the ears and bulls turned bears. Having said that we cannot just wait to sell. If you bought puts like me (and I was crazy over puts), good for you. While emini preferred active watch over your stocks and using stop losses effecively, I add use the puts as important, especially if you have a short term time horizon i.e. up to a couple months. Do not write puts, but buy them . Same with calls, don't write them- buy them. If you do not know what derivatives are, go online and search for them. Takes some time but learn on your own. they can be very effective risk management tools, and in times like these, if you're looking at high beta stocks, extremely profitable. All in all, most broad market ETFs- QQQQ, SPY and the IWM hve l broken past their support levels and will very probably test more support levels. Look out for a test of the 100 week moving average on the IWM at $74 and the $45 level for the QQQQ. For the SPY, look out for the $138 range. Below those levels, it'll be buyer's heaven once things shape up in the US economy. There are agoing to be a lot of lawsuits that will follow. Even Wall Street's king Goldman Sachs is being targeted. So I expect the declne to last quite some time, well into fall if things are really that bad. Large institutions like Bear Sterns have had some of their hedge funds closed. The situation is rather grave. The short interest on the SPY has jumped almost a 100%. That's good if you are out of the markets. Let it fall. Let the bad blood as emini pointed out flow away. For now, stay back and use proper risk management, don't be too greedy and ENJOY THE SUMMER!!!