With this kind of downdraft to close at a 52 week low, there will be more selling in the coming days. That doesn't mean we won't see an up day here or there.
Markets are coming to a crescendo here and it always lasts longer than you think.
The December jobs report is coming in 4 days. It will be a monsterous day as it will turn positive with all the Xmas, tax and census temp help being counted as new jobs. It will follow through into the next week when earnings will start and they will be decent against last years numbers.
I still say January will be a very good if not a terrific month for the markets. After that, it's a crap shoot.
I say hold your shares into the $3s then buy July 2010 calls to double and triple down on the cheap. Markets will fall by then and EDZ will be back.
Fear/capitulation is coming into the shorts camp. It will need to fester longer than you think is possible and then you pull the trigger on the options.
Disclosure: I own no shares/options of EDZ...yet.
PS If you want to make $$ go look at SYNM. It's the most incredible alternative energy play I have ever seen. If the markets go up, it will continue to skyrocket. It is up 40% in the last few weeks. The biggest (unseen) reason is this increase in would-be terrorism we are seeing. The most obvious play for this is airport security but we as a nation will eventually wake up and realize we need to get out of the Middle East to stop this BS. The only way is we make our own alternative fuels.
Go take a look. You won't (or shouldn't) be disappointed...or don't.