Letting it Play Out

The market pushed down 15% from all time highs and 10% in two weeks, a snapback was due, and we got one.  Now patience comes into play.  As many tried to capture a bottom, many will try to capture the top. That simply gives fuel to the algo traders to squeeze you until big money comes back in to take us back down.

My view is the next two weeks will not be bearish.  The Fed reports this week, and next week is new money week.  I believe a Chinese New Year is in there, as well.

Right now my signals have me short volatility, and long oil, miners, Apple, and the Russell.  All closed trades this year are profitable, and results are easily beating any major index.

As a reminder, you can take a buy or sell signal and trade the ultra or buy puts and call, or credit spreads and alternatives.

Good trading.