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It was a tough day for the bulls, stocks are getting cheaper, and tempting, but just as stocks got overbought and continued so throughout this year, they may continue to get oversold. It’s just how it goes.
Never buy stocks when they are cratering, if you have in the past you know what I mean. You have been killed. Levels are key and it looks like 1020, 1000 then 980 are the levels are in store on the downside. Think stocks are down enough? Think again. The market will tell you when.
Here’s the rub, we’re going to bounce viciously at some point soon to the upside, it will look like an “all clear” to get long, it”s not, it will be a reason and an opportunity to short more. Just like it was a buy on dips for the last year. It will be a short on rips.
Fear and greed are center stage. I’ve been saying for a year that the subprime crisis was a walk in the park compared to what is happening now on a global/macro level. Europe and the U.S are so screwed. Only time will cure it.
We have great volatility now, and the trading promises to be EXCELLENT both long and short. Be ready to play. This action doesn’t get much better.
No names tonight. See you bright and early. The P&L has been updated.
Joe