PANIC!, page-12

Even yesterday the volatilities and spreads were too high to make straddles a goer. MMs have learned something through the last few major declines and it's become harder to crack them. I managed to load up with puts near close, which was probably the best play - though I wish I had 3 times as many and had been able to enter futures. Well - there'll be another chance later on.

Market appears not at bottom at this stage, really a fairly leisurely descent at 200 down (3.10 am). Seems a fair chance that the present congestion area 7500- 8000 will hold the Dow for now. This is really very much like trading all the big losers we've had recently - but for the whole index.

Because I didnt have time to get set on something more spectacular (just came back from OS) essentially I'm trading a stock at a time. If something breaks a major resistance, I short it. If something hits a downside target and stops - I clear.

Best not to short too many stocks or you wont be able to follow them - or to sell them all if they all hit target at once. Very big positions on a couple of stocks is probably a better strategy if you have time to get set.