It’s a full blown panic in China.
The media thinks it was inevitable because China was in a stock bubble. The problem is China was not a stock bubble. People were acting silly if the numbers and stories were true, but I don’t buy into the bubble hype.
The panic though is real. The policies I am reading about to battle the panic are insane if half true.
Panics are like viruses, they spread fast. They can even happen on the way up, which is what the one year run up in Chinese stocks felt like.
Getting comfortable, which includes huge doses of trust over long periods, takes time. Lot’s of time.
That’s why the $VIX spikes in panics and than takes forever to wind it’s way down to levels that show people are comfortable owning equities and eventually too comfortable.
Figuring out turning points of comfort and panic are really hard, but I choose to focus on the panics.
The last few days I have dived into the panic. It’s my way of testing my nerves and battle the world in a behavioral way. Most of the time my stock investing has become boring.
My tools for trading panic have evolved. They are mobile and social so I don’t have to stare at a screen. I never risk more than 5 percent anymore.
I am posting my trades over on Stocktwits as I trade around this panic. I always learn so much.