After the commercial, Watson is outraged, both at Holmes's plans and his calmness. He explains that he has a calm exterior but is roiling inside. He's been planning this for one year, six months and twenty-two days. He and Irene had been together for seven months. As he talks, he collects doodads and tools from around the place. He says that his drug use had been recreational before her murder. But after Irene, he lost control. He used various stimulants to stay awake for the chase, and then he turned to opiates when the trail went cold. He has a butterfly knife! And an icepick in the fireplace. He says there's a frightening clarity to his thoughts. Watson says she didn't keep him clean so he could become a murderer. Then she realizes he wanted her away from the files because she'd see the name "Irene Adler" in there. She says she won't follow him, but she will call Gregson. He says she should do as she feels she must. Then he leaves with a bag full of murder tools. Which is practically any kind of tool, really.
Holmes finds Teddy and offers money. "Tell me everything you saw today." The scene ends, but we are to assume that Teddy does so.
A woman sits on a couch watching television. Her tiny dog starts barking. She asks, "What is it?" and gets up to investigate. This is totally unrealistic. The actual response is "Shut up, you stupid little dog! There's nothing out there!" I know this for a fact, because I have said exactly that several times during this episode. But now the dog is curled up next to me on the couch and is being very sweet. Anyway! On the television, the dog was right. The woman follows it carefully and sees it eating a hot dog on the floor. Her front door is open! She backs up toward a phone. And then she's grabbed from behind by M.
Watson shows Gregson the picture. Gregson is angry that Holmes kept the police out of the loop. Watson says it's the Betancourt chain. And she thinks they need to look for Sherlock quickly.
The woman, now tied up, wails while M watches the football (I decided to call it that instead of "soccer") and sets up the tripod. He complains about a referee call on the television. And suddenly Holmes is there, snarking at him: "Arsenal fan. As if I didn't have enough reason to despise you." M: "You." Holmes: "Me. Baton." Baton, indeed. To the face! M goes down.