Who are scared? Who will blink first?

Well, the answer to the first question is that both bulls and bears are scared as seen in the last two hours of trading today when panic selling followed by panic buying. The answer to the second question is yet to come.

On trading

Was too busy to write something during the day, but I bought some AAPL calls in the last hour of yesterday, and exited in the early going today for a small gain. Then I bought some put just before the big drop, but exited a bit too early for yet another small gain.

Random thoughts

1. Following DOW's step, SP500 became the second major indice to break its May low and closed below MA50. Bulls better hope that NASDAQ won't follow the suite or things could get very dice in a dime for bulls. On the other hand, if oil pulls back to 100/110, bulls might get some temporary relief, however, a much steeper drop of oil or the failure of another major bank could place bears in the driving seat. The battle for the supremacy is white-hot!

2. The Lehman mess reminds me a widely circulated report SP just weeks ago saying that because of the aggressive write-offs by all the banks/brokerage, not only the worst is over, but there might be some upside in the coming months. Sometimes you have wonder if those well-informed analysts are not as sharp as we thought, or they were just playing games on retailer stock speculators.

3. Speaking of Lehman, though it might not follow BSC's path, the chart just looking gravely hopeless, I start to think maybe I should buy a small puts just in case....

4. AAPL has been weaker than I expected so far as if it has already priced in the new iPhone release. I still might consider buying calls as close to 180 as possible with a stop just below, but will reduce the size.