Wednesday, January 13, 2016

Jan 13 - Worst case scenarios

Seeing potential for major downside based on just a gut feeling based on VIX not spiking, i.e. fear not gathering much steam and volume increasing but nothing even close to capitulation.  In addition, the failed buy signal from 2 days ago doesn't bode well.  Seems like much of the internet thinks support will hold around 185-187 in SPY from Aug lows and that we will get a bounce to short back into which makes me think it won't hold.  In addition, support has already failed in $NYA and small caps.  Indicator-wise, things are on buy signals for typical markets but we are probably entering a more dangerous phase of the market.

No comments:

May 15 - Closed out IWM puts for +120% and picked up DAL and HD Jun calls

I'm going to let the market do its thing this week and probably stay away from new positions until Friday unless something very good pop...