Time 3:32

Market Commentary: Hedging

Major Alligator sell signal on all 3 indecies on the 60 min. chart. This signal has let to at least a 2.5 - 5% decline in the averages every time I get the signal. The daily charts now will show the markets failing at the key resistance levels around their respective 200 day moving averages. It is also important to note that this signal comes on a day when we had two key average components, CSCO & DIS announce better than expected EPS numbers.

Stocks: DIA, QLD, SSO, SOHU, GLW

DIA,SSO,QLD are the hedging tools. DIA replaces DDM because we could not borrow DDM. Need to short 2X DIA to get th esame coverage.

SOHU: Sadly we must sell this hugh winner as a major sell signal has occured. We are booking 54.3% on the trade in about 1 month of trading. Not bad, cause for a little cheer!

GLW: Don't like the original decision I made. S/D rating 42 and the stock is giving 60 min. sell sig. I'd rather cut loss at 4.3% than wait for the stop.