We’re officially in a bear market. If Jim Cramer, the permabull, admits it, then it must be true, and I’m inclined to agree. I’m also tempted to say that the U.S. is currently in a recession (in, not approaching), but that’s just my view. Quick recap of today’s events include:

• Citigroup (C) missed earnings by almost 50%, cut their dividend, and took a huge writedown to their balance sheet. The stock took a 7% hit to all time lows.
• Intel (INTC) missed earnings after the bell resulting in the stock being crushed 14% as well as bringing the entire Nasdaq down with it after hours. Others such as Google, Amazon, EMC took 2-3% hits AFTER the markets closed. Expect the tech sector to open down hard tomorrow.
• Markets posted another 2-3% decline today, bringing their YTD totals to about 6% to the downside. We’re in a bear market and don’t let anyone tell you otherwise.
• Options expiration is this week. On Fast Money, they commented on how the Fed cut rates last year on Friday expiry. Could the Fed do the same this Friday as a surprise? If the markets continue to tank, it’s a good possibility. Currently, the markets are pricing in a 50bp cut with a 44% chance of a 75bp cut. A 75bp cut would be a cause for alarm signaling to the markets that things may be as bad, if not worse, than it seems

I had a rough day, taking a huge hit to the portfolio with my GILD play. GILD failed the ascending triangle breakout I had drawn last week and as a result I had to bail.  I may take the rest of the week off and let this mess sort itself out but we’ll see.  Any time I take a day off, the urge to jump back in the markets grow.  I know part of the problem, besides not being able to day trade, is the small account size I’m trading with, but I’d rather play the game with something than with nothing at all.

Good luck the rest of the week.  Looks like everyone’s going to need it.