Mid-week Note on the market

Intel's disappointing Q report and outlook, on the heals of another heavy losing day, ensures a test of the long-held Aug'07 lows tomorrow. Judging from AH reactions of many big stocks, the Aug'07 lows will be breached, at least in the opening moments. I suspect that bears will finally become aggressive given the important implications of Intel's disappointing Q report and outlook. While I fully expect market will rebound/rally into FOMC rate cute meeting later this month, I will suspend many long-side trading calls in the last weekend's note or significantly lower the entry zones. Don't catch the following knives unless you are really good at it or you know when exactly FED will issue an emergency rate cut.