Slight updates, Though surprisingly, domestic equities ended up on an upbeat note, a properly hedged written cover call should have absorbed most of the losses to allow enough time to close out any short positions, or allow it to be maintained while avoiding margin calls. The lowest short term support i can find is at 1400, though it is more likely to bounce off just above 1450, as volume lessens and earing reports will come in stronger than expected. On the whole piercing of common SMA and continued volume trends tied with downward momentum will keep the S&P 500, though those who are more bullish can always do another hedge similar to as before. But doing some small back testing shows that after a significant drop, a few weeks or few days of lower lows usually ensues before a bottom is formed. Adding to that there is more room for this downward momentum.

Interesting today, I would like to mention SGP. I personally feel the Fundamentals of SGP are still the same, though this drop primairly feared on slowed growth on its main sales drug. I would like to note SGP is more diversified in more than one drug, as shown in its 10k. In part i feel is that its the missed earnings tied in with a showing of slowed growth and exponential growth in MRK.

BUT! this prsents a great hedging opportunity for all you investors who have a long position in MRK. I see a good pairs trading opportunity in MRK and SGP.

(congrats on all those who followed the slow growth sales in SGP and made the call on earnings)...