I’ll be starting to be more aggressive deploying my cash now…

Sailin down the river in an old canoe, a bunch of and an old tennis shoe.
Out of the river all ugly and green, came the biggest old alligator that Ive ever seen!

Teeth big and pointy and his eyes were buggin out, contracted the union, put the beggars to rout.
Screamin and yellin, he was pickin his chops, He never runs he just stumbles and hops.
Just out of prison on ten dollars bail, mumblin bitches and waggin his tail. – Grateful Dead

If there’s been one theme for this market since we raised cash near the highs, that theme would be simply “Ugly”.  The markets are down another nearly 3% today.  Remember how the markets were supposed to rally huge when the fake “US debt impasse” was resolved?  Here’s the actual action:

That’s about as bad an eight day’s worth of action as we’ll ever see.  The pundits and reporters will attempt to read into what this action is supposedly “telling” us, but it looks and feels to me like this action last week and this week is as much a result of a mass-belief that we’d get a huge relief rally when the impasse was resolved.   That dramatically overcrowded trade is looking to me like it’s finally almost played out.

I’m going to buy some more MRVL and some CSCO.   Mostly longer-dated calls — out to February 2012 for Marvell with strikes around $15 and the January 2013 for Cisco with strikes from $15 to $17.50 or so.

I’ll be starting to be more aggressive deploying my cash now that we’ve got the other 2-3% down day that I was waiting for. Playbook, followed.