Rande, I can tell you for fact that pro traders at the Merc & CBOE are not going to panic, they know how to manage & offset risk, but they are nervous. No one has ever seen volatility like this, and they are calling it a downside velocity spiral. Turnover on the Naz 100 options at the cboe is 5 times normal. The E-mini at the merc is up 6x.
The problem with any bounce so far has been the selling into any strength, so until that is worked through, we stay negative. At some point, we will have more buyers than sellers. Could be today, or next week, or ??
I was downtown the last 3 days of last week, playing some of the big-cap stuff long, saw the "rally" losing gas Friday, went short every Naz index.
Posted Monday on the Rat thread this week would be nasty.
We went from being in an overbought market to an oversold one, and there are many things that are starting to look good from a risk/reward point now. |
