Time 9:10

Market Commentary: Hedge in place and working...

Today the markets look to open gap down on the back of negative EPS news out of AIG and further negative news from Citigroup. So once again the Financials are leading the way down. It appears that the markets are reverting back to the long term trends; higher commodities (oil new high up $2 to $125.74, gold on the move higher) and financials and other stocks headed lower. We now have a good hedge in place and don't want to disturb it until we see a difinitive buy signal. As always with hedges we would rather lose money on the hedge because we would make more money on the rest of the portfolio. The rest of the portfolio should be held intact until such time as we hit stop losses or get sell signals. The point of the hedge is to allow us to hold the quality ideas as long as possible to allow them to perform.