Going into the Weekend

I was able to get into FXI on Wednesday, but missed out on ADRE. However, with the large drop-off I will be able to get in a a significantly lower price. I feel comfortable with my positions right now and will be looking to take advantage of more downtrend within the market. The big question going forward seems to be: Are we going to test previous lows? My thoughts are that we will.

Going forward I will be more selective and focus on specific stocks within certain industries. Rather than spread cash around 3 - 6 stocks, I will focus and buy 1 - 2, which allows me to be more nimble. My overall market sentiment remains bearish.

The Day After

I tried to get back into some foreign market exposure yesterday, however I set my entry points too low and the market just had too much upward momentum. Today is another day and I will keep with my current strategy moving forward. This includes the following:

*Long on the FXI and ADRE at respective entry points

*Shorting the Dow via the DXD

*Selling covered calls on my position within RIO which will lower my cost basis on this stock

Foreign Market Exposure

I'm looking to make a small step into the China and Emerging Markets via Exchange Traded Funds. I've got orders in a bit above the lows for yesterday in hopes of a strong market open and then a pullback during the day.

*iShares FTSE/Xinhua China 25 Index (FXI)

*BLDRS Emerging Markets 50 ADR Index (ADRE)