Is this recent correction a buying opportunity for the bulls or is just the beginning of something bigger? As so know I feel comfortable thinking that know-body can answer that with certainty. However, I have long exposure and is not working so far. The options expire in 10 days and I expect to be flat (zero market exposure) before that, we will see if I have the opportunity.
Here you can find a post on Twitter.
The sell off from last Thursday continues #SPX #NDX pic.twitter.com/tOFb68XlSO— Mario Randholm (@MarioRandholm) September 8, 2020
The sell off from last Thursday continues and today we closed at the lows on SP500 and NDX.
On the other hand, the VIX close much lower than the value area since Thursday’s trading days. NDX futures resume trading below 11000 which was my first level to be respected by the bears. Now, I can say with certainty that this selloff is more powerful that I have anticipated. The NQ futures is trading at -12% from the Wednesday overnight high and the picture is not pretty for last week buyers.
The ES just resume trading and traded to 3300 or about 8% from the Wednesday high. If this is just a retracement is a fast one. Of course, we don’t know if this will continue for the rest of the week of the month.
My main R Option model have long exposure after a slow summer. We all not that US elections are near and that the USD is not showing the weakness of precious weeks which retraced about 2% from the 1.20 levels shown last Tuesday
Here you have a great chart that gives a view on how current situation is not so new for the market when you take into account the inflation and zero rates.
