Gotta be a bounce if only because it can’t go down forever.
CNN Money’s Fear and Greed Index is at one. One. It can’t go below zero.
Forty-nine of my nifty-50 stock list are on sells with forty-eight of them oversold. I can’t remember 48 oversold all at once before.
The VIX is at 75. That is virtually a bear market momentum number.
The VIX leveraged ETFs, TVIX and UVXY, have been the stars of this market plunge. See the charts below. Since the NYSI downturn 13 trading days ago UVXY is up 40% and TVIX is up 72%
TVIX was at 40 when I posted this advance notice in January – $TVIX – Just a heads up… – and closed today at 399. Absolutely f-ing spectacular if I was so myself.
So what now?
This is a only a guess because I have no actual upturns anywhere – not in the NYMO, let alone the NYSI, not in price, not in volatility, definitely not in fear and greed but this exercise band is stretched so far, the market ether has to crash tomorrow or snap back.
I’m guessing the shorts cover only because they have made so much profit this week and it would be prudent to take some before the weekend.
Could be wrong.
President Incompetent could try to “reassure” the market again, or claim everything is hunky-dory again, or blame Obama again or blame the Fed yet again. (Hell, the Fed fought the NYSI mid-day today and lost that battle big time by the close.) Yes, yes he claims he knows a lot about the stock market but knows nothing so he slam the market down another thousand points or more…again
But if he shuts the tweet up…
My guess is it’s a buy now – not for the long term – and a resell later.
Regardless – tight stops.