Wednesday was a pretty good day for myself and subscribers. Took a 60% profit in Chevron calls. Exited the IBM bull spread for a tiny profit. Also added puts in NKE. The best thing about Wednesday was arguably not the profit in Chevron but the exit in IBM. After the close IBM released earnings and dropped $14 in the after hours trading. As I told my subscribers going into Wednesday, I had a bad feeling about the market, and that I thought it might need another downleg to set up a better low. Hence the IBM exit and adding the puts in NKE. I also have the PYPL bullish spread position with earnings due there next week. Right now my plan is to hold PayPal for earnings. 

We have MSFT (chart) and GOOG earnings on deck. If they disappoint, look for a decline into the end of April to set up a better low. That is my favored scenario, and the one that I had that sense of before the earnings today, so probably means that is what will happen if history is a guide.