A real congrats to the shorts is due here.

I just covered my financial short (SKF) and now we are back to new lows. This financial drip will continue with small rallies until we get more clarity. If you don’t think Citibank or Bears Stearns could do a Worldcom or Enron, you are in fantasyland.

Do you have a plan for your Citibank that you bought at $30. What about Fannie Mae and Bear Stearns at $100 on the takeover rumors. At this point you need a miracle. Rate cuts have not helped.

Investors are being wiped out. They are doing so because they are bottom fishing and averaging down.

I dabbled in homebuilders once last year and got my ass handed to me and took my loss. Same with Starbucks. The one time you get lazy and than get stubborn, you get nuked. I just took a loss and lived to fight another day.

Please be careful. This market is in serious trouble.

I am most sorry that my only short is China (FXP) and that I did not put on the agriculture short i wrote about Friday morning (AGU, POT, MOS). There were some great ideas in the comments. Crushed today.

We are closer to a bounce, but betting on close in a market where the financials may keep dropping is just for gambling.