We have gotten many shots across the bow to warn investors to be careful.

First up was Dubai, then came China curbing lending, now the market is worried about the PIIGS.

Let’s face it, if one or more Sovereign Debt Defaults occur will the former creditors not come to their emotional rescue?

If they did not you have the IMF & the World Bank with some liquidity to step in and loan funds with some SAP’s or conditionality to impose….. I’m sure of it.

This is not to say everything is rosy and you should be reckless buying up equities.

I stopped out of a lot of stocks when we broke 1080 S&P & today I’m dipping my toe in the water on 1/5 positions in MOS, FCX, & VMW. I’m also looking very hard at trying to get TSL under $21 and MHS under $57 for earnings plays later this month.

If I was to take larger positions I might do a covered call strategy or when the market was flat lining and I was up a buck or more I could have wrote some puts.

While the mkt is retesting its lows of the day, it certainly does not feel like yesterday’s free fall where no matter what you owned you got the homo hammer.

While some of the burlap suited gents have come out and put the fear of God into investors we are not facing a situation that will create a halt in the economy and create another liquidity freeze…..yet

So man up on some positions and look for the S&P to hold 1050-1055. If we break look for 1035ish to be the next stop. A break of 1030 will open up 980 S&P as a possible floor.

I’m dip buying for some trades, but would be careful about longer term positions. The most important thing one can do is to buy over time and not price.

As a final note despite the recent downfall I have been able to buy PG, TSYS, and MMM into a close announcing great earnings and selling in AH for nice gains despite the debacle the following day. This strategy also got me liquid on QLGC @ $19.15 b4 it tumbled the next day for over a $1.50.

AH is for suckers unless your taking a profit!

Please note this post is not a recommendation for the companies mentioned. Please consult your oracles and see if they are suitable for you b4 listening to a avatar.

GLT

by GW