Pure Panic

I believe what we are seeing today is pure, unadulterated panic. An EU official made a disturbing statement about the Japanese nuclear facilities, which started a waterfall decline. It was later released that he had no information that was unavailable to anybody else. This has started a grab for put options. I believe the case for a good rally is starting to come into place:
  • The market is approaching maximum oversold.
  • We are seeing panic selling.
  • The VIX is spiking.
  • We have seen a string of days with heavy put buying. 

1 comment:

Anonymous said...

I only recommend very quick day trades. This market was SO high it could easily drop another 1,000pts. Too risky for me. I'm wait for firmer ground.