Provided the QQQ remains below the 200 day moving average the market model will be short starting Monday Morning. That said, if the market gaps up above the 200 day Monday morning the market signal will be cancelled. Right now, we are just barely below the 200 day MA on the QQQ and because of the slow stochastics and also the 200 day, the model is short equities here. One way to play this would be to short the QQQ but stay long MSFT, INTC, GOOG, ORCL as a long short play on the market.
There are plenty of cheap stocks around but you have to do your homework. Hedgephone will be much more active this month and we apologize for not being more aggressive in our trading calls (mainly we have been in cash since August).