An earnings miss by Alcoa and a warning by Chevron combined to take some froth out of the market.

It was not a good day for us. The earnings miss by Alcoa crushed the rest of the minerals sector and that included Freeport McMoran. The gap down open stopped us out for a big loss.

The IWM short put was also stopped out but the stop was close enough at $64 that the pain was manageable.

That leaves us with the bearish plays on the DIA from last week. We need another good dip to rescue them from losses and I don't think we are going to get it. Too much time has expired from the clock and the put has little or no chance of returning to profitability. It would take a 200 point Dow decline for those positions to be profitable.

The drop came a week too late. Had it come last Tuesday we would have been positioned and ready to profit but last week's rally took us out of range.

I expect move volatility this week ahead of Intel's earnings and I am not going to be adding any new plays tonight.

Jim Brown

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Long Puts