Happy Monday and -100 SPX handles to you!
Holy cow, I know we opened up over forty points to the downside, but seriously, another 60 points lower is going to be a tough pill to swallow for a lot of investors. I’ll admit, I wish I still had my inverse ETF in SDS still, but after five days of selling last week, I wanted to close that position out with the profits I had accrued.
Little did I know, we have some Chinese currency devaluing and a whole sale gutting of the financial markets that followed. Nonetheless, I am in a really good position here, sitting almost entirely in cash, minus one defensive play, and ready to put it to use, for a 2-3 day dead cat bounce. I’m not saying that will happen tomorrow or the next day, but I’m a wee-bit confident we’ll have our chance at some point this week.
I know this isn’t the most popular opinion out there, but I am glad we are finally seeing some major selling, because stocks weren’t doing squat prior to that, and the increased volatility is welcomed sight.
Below, I’ve put together the list of stocks I am following for such an opportunity and will look to play a handful of them in the days ahead.
Here’s the bounce watch-list: