As mentioned previously, in Model Update, Blood in the Streets, and Time to Buy Some Panic, I think we’re closer to an intermediate term bottom than we are to a long term top, and while we can reasonably argue about degrees of “panic,” I certainly think this fits the bill. While players with intraday or days of timeframe can trade the noise, my interpretation of the signal, for someone with weeks and months of time horizon, is that money is made buying here. I’ve currently got money in play based on that thinking. I will bet that your favorite bear bloggers are buying in their “aggressive” managed accounts and selling their puts and getting levered long right now, and telling their paid newletter clients to do the same, despite all their bloviating about the economy and their bragging about “getting it right” on their free blogs directed at the rubes. Think about it.

Some portfolio changes:

I am buying back iShares South Korea (EWY), it stopped out for a profit, no wash needed. Assigning a 5% weight.

I am removing the stops on Energy - Oil Equipment and Services (IEZ) and iPath India (INP).

With those changes, I’ll be about 65% long with beta over 1.00 and dry powder left. If action continues downward, it may stop me out of ATRO, EBIX, or TRXI, but the ETF plays on indices and sectors will stay. I don’t anticipate other changes until next weekend, although a spectacular “crapping out” of the stock market may move me to buy even more and get really levered long.