TRADING THIS MARKET

Hi Folks,

The SPY traded below the long term trend line today for the first time since the October 4th lows. We didn't break the line considerably so it is permissible for it to regain the trend as long as it does it quickly. The next level lower in SPY is around 134.10 or roughly 2 points lower than today's close. My feeling is that we will more than likely get there. However, I did buy calls today in TBT because my trading rules said that I should. I had multiple positions that I was looking at but only chose to do one of them since I feel we can still go a little lower.

Thanks and Good Trading,

Tim