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[thoughtpwr]

Clearly the VIX has topped and we should make a drop (VXX Puts) to a quick low, where i would start collecting VIX calls through Feb. Unfortunately, we didn't have a chance to reverse until this morning if we were short anything. I had made money up until Wed morning throughout the last two weeks, but got my clock cleaned by this AM. I reversed to some extent and will ride the completion of this move before going short. A number of analysts have been stating that Dec is a major top this year. That will still be true, but it wasn't 12/5, it will be 12/24 is my estimate (12/26 Bradley date). The SPX P&F has targets like 2335, but I am not buying that one anymore, until we finish the next correction. In hind sight, I think we just saw wave 4 of the SPX cycle up and are in the middle of wave 5. I think I have seen this formation before and we keep going vertical another 4 days (possibly flat tomorrow OPEX) before we top for Christmas. In particular by 12/26, the Bradley date we will be on our way down, because I don't think we will have the steam to power us higher than 2100-2120. Once we make new highs, the pressure will be off, but this ends quickly and I think we drop back to support at close to today's levels and wallow around for a couple of weeks with a 50% retracement until OPEX is over and we retest the 1820 area. I would guess this is the 1/31 Bradley date. I think its over quickly, because we will lose volume by Tues or Wed of next week and Monday is the Last Mon of Month, with a exit for many on the Tues open. We apparently don't have shorts to feed the rally, that hasn't been expended so far. They say don't short Dec, but late Dec should prove to be the exception to the rule. I am not sure there aren't special stocks that make some good gains based upon earnings, or special circumstances beyond this date, but the general market I think is quickly done here. We will see. Timewise, i think the bears get stretched and patience may be a problem for many as we are somewhat symmetric to the flat top area we had prior to this sell off.