RECAP

Strong start to the day as expected by the strength across Asia and Europe. Weak close.
The rumors of New Century Financials pending Chapter 11 bankruptcy soured the bullish mood.
I think Tom Brown is a very brave man. But, there is a very thin line between being brave and being downright foolish. Right now the only mortgage company I would bet on to survive the subprime melt down would be Countrywide . All bets are off when it comes to the other lenders. I wouldn't even count on Freddie and Fannie making it through.

Traders appear to be anxiously awaiting tomorrows job numbers . We could see weakness if traders decide to go cash for the weekend.

I cut back some long positions as I sensed weakness later on in the day. I added to my QID , DXD , SDS and MZZ positions. Took in some TWM as a precaution . Judging by the down, up , down , up trend of this week I expect tomorrow to be a red day. As I mentioned before, neither the bulls nor the bears appear to be pressing their advantage.