Editor's Note:

The market's major indices gave up most of yesterday's gains. The S&P 500 index closed on its lows for the session, which normally does not bode well for the next day's open. Personally I suspect we'll see this index retest its lows from yesterday near the 1100 level. If it can bounce again is the real question.

The market still seems too oversold to buy puts. Although from the big rise in the volatility index today (VIX) there were plenty of investors buying puts. Unless you are a veteran day trader with the scars to prove it I would hesitate to swim in this market. Tomorrow I'd sit on the sidelines to watch the action and let the hedge funds beat each other up instead pummeling you or I with this insane volatility and whipsaw market action.

If you're feeling nimble then I would be very, very tempted to buy calls on the market if we see the S&P 500 index decline toward what should be support near 1050.

We're not adding any new plays tonight but I did tweak the entry point strategy on some of our unopened trades in the play updates section.

- James