I have to say, I traded through 9/11 in Europe when the Dax fell almost 20% in a couple of hours and New York didn't even open, people thought WWIII might be starting, but this market is actually more scary. Right now I have 98% cash, and 2% in some Oct and Nov puts at ridiculous strikes (700-800), that's it. We saw co-ordinated cuts, the market pops 60 ES points on globex, and just a couple of hours later it erases the entire gain. I had thought the lows were in early this week - all the pieces were in place for a normal low. The only condition that wasn't in place was the one you only see in a true crash i.e. we had not yet had a 1987 style mega-crash/capitulation on historic volume, where disorderly trading takes over, you see execution delays, fucked up quotes and people thinking the whole system is bust. On 9/11 there was a point where there were no bids in the European market for a few seconds, bid/offer spreads on the Eurostoxx were 30 points (1%) wide and it was trading 20-30 points at a clip. I have a bad feeling we might need to see similar today/this week before it's all done. If that happens, we could actually see a repeat of 1987 - S&P down 20-30% in one day, to 700-800. As I said, I have no real conviction in my views right now, I also got things badly wrong yesterday, hence the ultra-defensive positioning. Survival is my main priority, but I think a little bit in long puts is worthwhile, and at the very least, have a plan in place for if we see a true historic meltdown. One last thing - if this *does* happen, then there's a tactic you might want to use. During market crashes, John Templeton used to place orders at prices ridiculously below the current quote e.g. $1 for a $10 stock. I don't have a clue what is going to happen in the next day or two, but I think it might be worth placing a few "submarine orders" good-til-cancelled on your favourite blue chips & solid stocks right now. Just make sure they are at truly ridiculous prices, and don't do it on any stocks that could conceivably go bankrupt. That's me checking out - see you at the closing bell.