After an incredible rally on Tuesday, the confidence and happiness of the market was tempered severely on Wednesday.We saw most major averages give up 75% of Tuesdays gains. The euphoria and excitement of the Fed cut quickly turned to grave concern as Merrill Lynch is rumored to have further write downs. This fear and concern was evident in the options trading as we see more then 72,000 of the April 30 puts trade. This option is trading at a volatility level of 167%. People are willing to pay such a high volatility as the concern runs deep. We did see some positive news on the day with the largest IPO in history as Visa (V) went public today and was up 24 % on the day. JP morgan also enjoyed a positive day but overall it was ugly as only 1 stock (KO) was up and 29 down in the Dow. We head to Thursday and expiration as we are closed on Friday ready for another wild ride as stock options, index options and Futures all expire tomorrow. I think we could have an up day but do not get too confident on any move as the one thing we have learned so far in 2008 is that the market is anything but predictable at the moment. we see the VIX back near the 30 level and if we can stay below that level there is still plenty of room to the upside.

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