The US markets are now all down on the year…which I sum up below in a $cashtag:
Goldman Sachs stock now negative on the year which means as usual…record bonuses… $GS
— Howard Lindzon (@howardlindzon) Oct. 15 at 09:07 AM
Go watch Jon Stewart from last night if you want a hint of any truth on #EBOLA.
I still don’t care how and why the markets are plunging, but they are. The signals were there starting in February when we discussed the small caps breaking down.
When fear grips Wall Street, the ‘sell’ button becomes easy to hit. Your cool ‘robo’ advisor and low fee ‘ETF’ get spanked like everyone else’s.
I have been buying the last few days in some spurts putting about 30 percent of capital to work of my stock allocations to $VIV $SPY $GS $YELP $XLE (its ugly for me) and some premium put selling in Zillow and a few others. I might flip out tonight or tomorrow, but I do plan on selling most of this inventory.
I have been short the biotechs the last few weeks through $BIS as discussed on Stocktwits. Not enough and definitely not the right instrument. Oh well. Good gains that I am locking in.
Here is what the markets look like to me from JC, $XIV and a ‘Fear and Greed’ standpoint:
CNN is back at ZERO (poor souls):
The best line of today comes from my friend Joe Fahmy who uses the Warren Buffett Greed Index:
CNN Fear: 0, Warren Buffett Greed: 100
— Joseph Fahmy (@jfahmy) October 15, 2014
Here is my the $XIV which I am using as a proxy for being long at the moment:
Finally – here is a great post with clear lines and technical thoughts from JC because in the end, people look at this stuff. JC notes that things are getting materially worse technically into this selloff. I internalize the post as ‘one foot out the door’ alert!
I like my plan but it’s not working a few days in. I have some losses that I will manage and not let get too far away from me. If we turn here, good times. I have great prices considering the speed and depth of this selloff.