COT Report, Guru View

Source: U.S. Commodity Futures Trading Commission (WWW.cftc.gov)

Index	Trader Group	11/2/2007	11/9/2007	Difference
Dow	Commercials	-177	-1093	-916
Nasdaq	Commercials	5885	6050	165
S&P 500	Commercials	51694	46398	-5296
Russ	Commercials	3427	4754	1327
VIX	Commercials	-4304	119	4423

In last week, Commercial traders sold off S&P and Dow, but increased holdings on Russell index slightly. They also bought heavily on the VIX - Volatility index, expecting tough time ahead. After testing support for several days, the stock-market indexes finally broke-down below critical support levels.

Monday morning crash talk is in the air, but the market gods have denied that event through every other opportunity in the last 20 years. Of course, anything could happen because this is easily the worst price action since the summer of 2002.

In short term, the market has been severely over-sold, but it's time to exercise caution!

Hope the best for all,

Market Swimmer