Editor's Note:

Good evening traders. While the Goldman Sachs fraud charges appear to be the catalyst we needed for a meaningful market correction, I am also cautious about entering new positions right now. The ensuing publicity surrounding the fraud charges is bound to make the market volatile in the coming days. I suspect there will be a relief bounce after the heavy selling on Friday and we will be ready to take advantage of it by initiating short positions. Our portfolio is performing well but we are getting defensive on some of our long positions by moving up stops and adjusting targets. Our SRS position is now up +11%.