Whats Your Strategy In This Market Condition?

I'm almost all cash at the moment because of the current market condition. Im staying away from big bluechip stocks and kind of hunting out value buys in smaller companies. I would like to see the market dip lower for a while, I feel prices are inflated.

Lets share strategies! What are you doing in this current market condition?

Personally I am selling premium and volatility wherever I can find it. Using option spreads I am doing this with pretty much everything short of GOOG and SPX with less than $3000 in capital. I keep around 2k back in cash in order to be able to scale up in the event of volatility expansion like we had a week ago. This way no matter which way the market goes I'm already in and ready to bump it up. Here is a pic of my position statement. My P/L Open is pretty much always negative as I take off winners as soon as they hit 30-50% max profit and I buy back the untested sides of Iron Condors when they are near pennies. Just wanted to show how a small account can play the big stocks using this strategy. Everything is a vertical spread....either with puts, calls or Iron Condors. I enter positions where Implied Volatility is above 50%, where I can collect at least 1/3 the width of the strikes and liquidity is high and with expiration as close to 45 days as possible. I don't manage losers as the risk is defined on entry. I manage winners above 30% max profit. That's the bulk of my strategy aside from the occasional notional play.

Ditto. Your base strategy should work no what the market conditions are. That's another thing being a Realtor taught me.

To give an illustration of how over pumped up the market is, I read some where that there is 14 billion (I think it was) in the market that is on margin. If that is true just like master card dept etc you could see the market making the correction at some time. That is one reason I do what I do, when it corrects I don't have that much long term in the thing. Anyone else heard this?