Start acquiring those small/mid-cap banking stocks with good dividends and rotating out of the garbage.
Next 6 to 12 months are going to be painful for the rest of the market. The market may not dive, but I don't think we're going to see any major upward move like the past couple years. I'm almost as negative as you were at the beginning of the year.
It's ok to have some speculation stocks, just don't make them the bulk of your portfolio and spread out the buys to average down.
any specific banks that you like at current prices? thus far my defensive plays are electric utilities. i continue to have large cash position along with other stocks previously mentioned including several depresssed biotechs.