Week in Review

Market:

1. For the week, even though there are lot of drastic movements early in the week, at the end of the week, indices were down down: Dow -1.4%, S&P 500 -1.1%, Nasdaq -0.6%, and Russell 2000 -0.8%.
2. Everyone should remember, after the 2% drop on Tuesday, on Wednesday, Nasdaq were down more than 1% before closed up 1%. That is the so called reversal day and bulls cheered the move to indicate the end of this down turn.
3. But from weekly chart, Nasdaq was down 6% two weeks ago, up 1% last week, and down less than 1% this week. It's hardly started. I think from long term perspective, Feb.27th marked the turning point, from bull market to bear market.
4. Housing bottom is not hit yet; subprime mortgage issue will spread into other mortgage sectors, the Alt-A and ARM areas for sure, so the worst is ahead of us, not behind us. Even prime mortgage is not immune from it.
5. Yen carry trade's unwinding will accelerate the market's sell off. But it will be anything but smooth.
6. Housing (subprime) issues and carry trade unwinding are among the issues facing this market, other issues are not completely out of wood yet, recession, inflation, geopolitical issues.

What's next:

1. I'm using ultra short ETFs (QID, SDS, MZZ) to play the market's slide into bear market. My core positions are these three. May consider TWM or exchange into TWM.
2. I have some QQQQ and MDY puts and RIMM puts, plus CFC and CNB puts.
3. QQQQ and MDY is to play the overall market.
4. RIMM is a speculative play, so far, it's not working well.
5. CFC and CNB puts are the play on mortgage and housing downfall.
6. Will watch PM, oil, uranium closely and add them when I think the sector are closer to the bottom.
7. I'll use a small positions to play swing trade if I find a chance.