“Did you sh*t your pants?” That’s the question of the day. Some of the talking heads on TV called today a capitulation moment. Well, if you crapped yourself, congratulations, that was capitulation. Most likely, you didn’t. Despite the close being an 11.5 year low for the S&P, I still don’t smell capitulation. I took some profit today. Unfortunately, that means I’m, once again, no longer well hedged. Sure, I have positions that will profit on the downside, but overall my portfolio will lose value on the way down. I’ll probably put on another strangle tomorrow. Volatility seems to the be only thing I can count on. That said, I’m starting to turn a little bullish. If the S&P actually does crash to the 600’s, I’m going all in. Then I’ll actually have to use my paycheck to make trades. More likely, we’ll get a fast rally and I can buy back my puts. Hopefully that happens before I sell the last of mine.

Dell announced results at the close. They beat expectations on profit, but missed on revenue. A solid beat would have possibly been a catalyst for a rally tomorrow.

The automakers didn’t have a good day today. First, it sounded like we had some consensus in congress. Now, it’s a special December session. The market didn’t like the whipsaw (and responded with a whipsaw of its own).

Bloomberg has an adequate write-up on the day, U.S. Stocks Plunge, Sending S&P to Lowest Level Since 1997. I already checked, no mention of a “brown moment.”

Update

I didn’t crap myself, but I did almost pass out. That, however, has more to do with the fact that I was donating blood (hit 5 gallons today) than anything to do with the market. I just wanted to guilt you all into donating. If a selfish bastard like me can do it…