guru augery, from Pete at 1option on fri 5-14-2010: "Short every failed rally. In the early going, take profits and expect snap back rallies. When those rallies become less frequent, youâll know that investors are ready to throw in the towel. Major support levels will fall easily and that is when you need to hang on to positions. You can already start to buy long term (put) options (4-6 months out) that are far out of the money (20% or more). Scale into these trades. Focus on companies that rely on credit (heavy equipment, banks, and consumer stocks). Any company that carries a lot of debt and needs cash flow (airlines) will be in trouble. Keep your long term put positions and add to them in coming months. Have shorter term capital available to get in and out of front month put options in the early stages of the decline."