Stocks suffer, but traders are banking on the luck of the Irish 
The cash market Dow settled 243 points in the red, marking the second worst day for the blue chip index on the year. The market traded lower in the overnight session on news of weakness in global equities, but it was news in the sub-prime lending arena that shook things up. New Century Financial Corp., Accredited Home Lenders Holding Co. and General Motors Acceptance Corp.'s are openly facing financial trouble, making stock investors wonder about the ability of the consumer in the long term. Remember, it has been the consumers that have lifted this economy out of recession.

"The market is still jittery, and they're starting to get full-blown concerns over a bleed in the larger sub-prime mortgage market." Noted Matt Kelmon, portfolio manager of the Kelmoore Strategy Funds.

Keep in mind that sub-prime lending is a relatively small sector in the world of banking, and even more so in the U.S. economy. Today's move seems to be a gross overreaction to a situation that we were all aware of well before the market's reaction.

Adding to the volatility, Friday is the March Triple Witching. Perhaps, many March option traders were looking to adjust their holdings. However, the Dow has been up 4 of the last 5 March option expirations.

According to the Stock Trader's Almanac the stock market is "lucky" going into St. Patrick's Day. Both Thursday and Friday are statistically bullish days.

Dow Recommendations
Swing Trade - Flat

Position Trade -

Option Trade -
3-1 Early this morning, we were taking advantage of the dip. We were buying the March 122 call, selling the March 124 call and the 120 put for even money. Yes that is right, it was a free trade before commissions and fees! At the end of the day, this spread was already very profitable.

Nasdaq Recommendation
Flat

"You try to be greedy when others are fearful, and fearful when others are greedy" - Warren Buffet