We are Scaring the Children

I closed off my AAPL and Real Estate short yesterday (both profitable), and only am long gold, the miners and oil right now. The market is whipping around so much now, that is making a mockery out of swing trading.

I also have some small VXX puts on for next week.  Volatility is pushing pretty high into extremes and the snap backs are equally powerful.  Like adrenaline, the moves are powerful but not normally long lasting.

The thing that has me scared though is if China has lost control and we are seeing a powerful liquidation event.  The created more debt than we did, on a smaller economy, with even more corruption and malinvestment.  They are sucking the life out of the world economy.

These next areas now look likely.