BEWARE THE BEAR?

I wonder where the bull went after I sent it out for a rally. Its still circling around wall street I hope while the bears showed some OOmph last evening. DOW dropped below 13000. And more importantly the S&P 500 took out a significant level- 1450. It closed at 1439. OUCH! Lets not even look at the NASDAQ that has almost completed a 8 per cent correction from the recent peaks.

And the VIX (volatility index) shot up above 30 again- to the August levels. What do we make of this? We are in pain. And suffering is not an option... we do what we did in August- BUY BUY BUY. If the market swoons today- the DOW could go all the way to 12500 intra-day some time this week... and buying would be prudent- nibbling is what I do... average down some of my positions where nothing fundamental has changed.

To my mind we are OVERSOLD... and a rally is due. Walmart beat expectations, bodes well for the oversold retail. Will look to sell our retail stocks into the rally - orders to sell COH and JWN at 36 are intact. Our target for TGT is 61- that is do-able this week. Another highlight for this morning is GLW - Corning - we bought it at 21.5 yesterday- stock is up 2 bucks pre-market. The company raised it guidance- miraculous event- in such times... and so I see 25 soon. We hold on as its a safe bet even if the market crashes again this week.

Am covering my oil shorts today. SLB and XOM- have sold off and looks like we will get another chance to buy puts just in case Oil rallies toward $100 again... pulling these stocks up again. So am selling my puts ... as the November expiration is near.

I heard someone on CNBC say he is `cautiously optimistic' - thats another signal to BUY- they will not be optimistic until the party is well under way. When analysts pull the trigger and downgrade a stock thats hitting the dust- I am a buyer- if its a solid company, for instance... a downgrade on JWN when its down from 50 to 31- are you kidding me. The consumer may be dead- but the shoppers at Nordstrum will still go to Nordstrum...!

Technology is beaten down tooo much too far... and hang in there for a year end rally commencing one of these days. Beware the bear- its lurking but should not scare you to sell at the wrong time. Hold onto stock and buy more if they fall - my best bets are CSCO, EBAY, BRCM and GLW. Am adding SIRI at 3.50 betting on an approval of the merger with XMSR. Downside risk is low. So thats another safe one for me.

AM still lookin for the bull that I sent out ... yesterday- if you find him -send him straight to wall street to combat the bears... will you please?