Trade Notes

I haven't heard this much bearishness in a long time. I checked in on Fast Money this evening and the tone was dark. Najarian was bearish, Seymour was bearish, Adami reiterated his 950 call. Finerman said it felt like "the night before Lehman." Gartman was as dark as I'd ever seen him. Then there was Richard Russell's crash call today. "Sell everything" he advised. A very shrewd Forex trader I know was horrified by the action of the Aussie today. That it has been the relative strength leader for so long and just broke through the 5/6/2010 crash lows was extremely bearish to him.

For my part, I took detailed inventory of my short book, took some profits from the short side, put on a tiny hedge with some SPY calls, and bought some cheap FXE calls for the Euro, noting that the EURUSD is sitting on the 50% retracement of the .82 low to the 1.60 high. Now I will get a good sleep and let the market tell me what to do next. If we crash, fine. If we bounce, that's great too. Best of luck.