Thoughts About Today's Plunge

  • Friday's lows have been tested twice and we bounced off of them twice. Each time a level is tested it gets weaker.
  • Turnarounds have been a rarity in this market.
  • We are finally starting to see put buying and real fear. To get really good capitulation Friday's low will likely need to be taken out on a closing basis. 
  • Where do I think we will bottom? I think a good rally will start off the 1020 area on the S&P 500.
  • I would be a buyer there for a trade so selling puts that would get me in around those prices is a strategy that makes sense. 

2 comments:

Anonymous said...

Friday's low has been taken out intraday and you state that a really good rally would come off of 1020. What is your thinking regarding buying brkb?

Tsachy Mishal said...

That it will be higher into next weeks S&P addition or at least the downside is limited. I see it as a cheap call option.

I am short XRT calls against GPS