A diary of the thought process behind my investment decisions
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.