It wasn't that long ago that DIA was at $96. The close on 4-Nov-08 was $96.21 followed by $86.46 just two days later.
The low volume and fear in the market makes this sucker wound up real tight and ready to explode in either direction on the least bit of BS news.
Very scary. Too scary for me to be in a position for more than a day or two. I might lose out on opportunity but I don't want to get painted in a corner either. I'm happy waiting for the open and then move on whatever news comes out. I'd rather nibble on small moves than get eaten alive by the big ones.
I know it never feels good to hold a losing position, but this market is heavily manipulated and hasn't proven that it can break and hold above 9000 in the past 6 weeks, so my recommendation would have been to hold it.
I don't make empty recommendation. I actually sold the DIA call options and bought put options towards closing. Good thing for now...Dow future is down ~76 at near midnight (EST).