The Fall

I was, for the moment at 3pm yesterday, looking at the index board (our office has these electronic board hanging on the wall), and witnessed the 200 points fall in a matter of seconds. I do agree with this article that it may be caused by a system glitch. However, the Fall is real for the trading day...

No intention to do "I said/warned so...", but on the record, In my recent portfolio review post, I did say

QID: If you haven't yet felt the weakness in the market, you shall take a look again. A simple advice to follow - when you buy a stock now, consider buying QID in half dollar value, a hedge against the market weakness, if you believe the market is turning weak. (QID double short QQQ)

Our portfolio was hit hard today too, with a number of stocks declined over 5%. Fortunately, as mentioned early this year, I strictly follow 50% equity / 50% cash balanced portfolio. And my equity portfolio is 25% hedged by QID (let me know if any one needs further elaboration on this), which minimize the damage to the overall assets.

For the short term, my market overall prediction discussed in 2007 outlook post is validated. Furthermore, I think this may not be it. I am not recommending panic sale - but in my opinion, Wendesday is certainly too early to jump back in even though you may already identify some bargain opportunities.