We are in liquidation mode as the Dow fell 391 points on very heavy volume. The advance/declines were 8 to 1 negative. A slight comeback before the close as we were down over 500 points. We've got lower to go though as the August lows are not going to hold up here in my humble opinion. Something is going on here but I certainly don't know what it is. All markets are dropping around the globe in what looks like a repeat of the fall of 2008. Buy index puts on any bounce if we get one is the strategy now. Plenty of time left in the October option cycle. Not sure just how low we will go this time around. It creates opportunity as well don't forget. I'm going to try and be patient but who knows? GE was off 1/3 on heavy volume. I'm still looking at the January calls here. No rush to purchase them but that is the game plan for GE. Gold got pummeled as well, down $66 on the futures as the flight to the US dollar was substantial. No flight to safety for the precious metal today. The XAU dropped 16 2/3. ABX lost 4 1/2, GG fell 3 1/2 and NEM down 2 1/2. Huge gaps to the downside in the gold shares. If the stock indices continue to the downside, the gold shares probably will follow. That said, I would still like to own some calls here at some point. The October or November calls in either ABX or GG. Mentally I'm feeling OK. The summation index is heading lower. The trend is down. We are about to break through the congestion zone of the past few weeks to the downside. I'm not sure how low we will go. If we drop hard again tomorrow I may purchase some gold share calls but I could be early. These are interesting times. Opportunity will present itself. It's a matter of being ready and being prepared. I'll check the charts tonight and go from there.