Get Ready for a Red Day on Friday

The after hours picture looks ugly. MSFT, AMZN, JNPR, AXP, RVBD and many other stocks are getting hit in the after hours. Some missed on expectations, others provided weak guidance, yet others are already getting hit in sympathy or on profit taking.

Just when it started to look like we may get through this earnings season unscathed, BOOM, goes the dynamite.

I had a very good day in the market this week, correctly predicting a break out. I sold some calls, but not enough, and really didn't do any trimming, really waiting for tomorrow, so I can square off some positions before I take the next week off.

Early look, it seems we will open 120-150 points down on the Dow. Summer Fridays are also known for reversal of the trend of the previous few days. Many will be taking profits tomorrow. Either way, barring something unknowable at the moment (4.30pm EST), I am expecting a pullback.

To protect my portfolio, I am buying SDS and QID after market. I entered positions at QID - $27.68; SDS - $48.90. although it is not a 100% hedge, it will get me down to 60% Net Long.