I love the smell of stocks crashing in the morning

What a wonderful day for the bears! And going into today I was already set up bearish, but jumped in even more in the pre-market. I had 9 equities trades and 3 futures trade today, and it ended up being the best day this year…all by noon!

The markets all went down and hit bottom by noontime. After that they just meandered up and down a few points and ended near their lows. ES futures had almost 3 and a half million contracts traded today…haven’t seen that since last year. And the VIX caught a 22-handle, up almost 20%. Looks like fear and volatility may return to the marketplace. Thanks to the Prez for injecting it.

It’s also the first time we had 2 down days in a row since early December. That’s over 400 points from the Dow in 2 days. The Dow ran right thru its 50 day moving average, while the S&P came to rest on its own 50dma. After such a big red down candle I think we may have a bounce or at least a narrow range inside day. If the selling continues, oh boy, it could get nasty.

Isn’t it funny when you walk into a investment firm, and you see all of the financial advisors watching CNBC — that gives me the same feeling of confidence I would have if I walked into the Mayo-clinic or Sloan Kettering and all the medical staff were watching General Hospital…

– Senior portfolio manager, UBS

Here’s a good ying-yang story…..the ying:
Obama hits Wall Street, pushes for bank limits

…and the yang:
Geithner has reservations on US bank limits

And I guess the Democrats haven’t got the message from the Tuesday election results. But then again, Senator Dodd isn’t running for re-election:
Hands Off Our Slush Fund! Thune Amendment Fails