You bought puts right? This is what I was talking about when I saw the trend change the other day. I talked about the trend being "troubling" and that we could be heading lower. I said we were at a "crossroads" yesterday. We could have headed higher. We didn't. We have taken one step in to a much deeper bear market.
So what is the next stop? Wait till you hear this...
Dow 7,125 - 7,225
Nasdaq 1,095 - 1,195
S&P 500 725 - 750
It is a bad thought, but I think we have to head to those new areas of support before we go higher again. The point is not to trade the market you want, you trade the market that is there. The market in front of us is going lower. Take advantage of it and buy index ETF puts. You can get short without taking a ton of risk. At the money puts on the QQQQ, SPY, and DIA will get you what you need.
Any long positions, other than the one I will tell you about tomorrow, should be VERY carefully analyzed and small in size. You can be dead right about the future prospects of a company and get pounded in your long position because the market isn't trading on fundamentals. Until next time, stay low risk.
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