This is what so many of you hoped for, why be afraid, you should be thrilled. Those of us who said be careful what you wished for were talking about exactly this scenario. Obviously the market is short term oversold and will bounce sharply in the next day or two even today it could happen.
The PPT’s .75 seem to disappoint traders based on the tape, However, based on this opening being past a -4.0 std deviations based on a 60 day regression channel, it is likely to be a short term low today. Every other time in history I can find where we touched the -4.0 we had a significant bounce almost immediately.
I exited my futures long Sunday luckily when it was actually in the green from Fridays close, so I am probably going to sit this one out. Trading in this volatility is straight out gambling. If we get way down I will nibble on a few blue chip stocks I like. I took my Gold shorts off profitably last night, and am only short Cocoa at this point which is unaffected by this stuff. I am looking to put on a heavy short position on Gold during any bounce we get up from here during the next week.
