This week was very dramatic and violent in terms of price action and market movement! For the week the S&P 500 lost over 1.1 Trillion USD in market cap, the VIX (CBOE Volatility Index) had the biggest one week move higher ever! Up almost 120%; and let’s not forget the DOW had its worst weekly drop (over 1017.85 points) since the 2008 financial crisis. So, all in all it was a really crazy week. For our group we had been expecting a larger move down and all the warning signs were there, from the bearish divergences showing up across all indexes, Dow Transport under performance and relatively strong strength in the US Bond markets and the lack of breadth in the overall markets…yes our members had the warning signs and were hedging our long bets with calls, going to cash, taking early profits and going long Puts. Of course no one can predict the strength or the duration of the move, nor the timing of how long it will last, but we had a good idea of the upside and downside risks. Now the big question is where to from here? What are the charts saying? Take a look at our take on the markets this week in the video below…and if you are not a member I would highly encourage you to come on over and join…it is times like these that can make are break your entire year!! Enjoy;
Don’t Be A Rat Brain Trader — Trade Smart!!