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... Red Dragon Leo

I think the low is in now. We should rally back up some the rest of the day but not huge. The short term charts are still bearish. We should certainly close the day in the negative but probably up some from here. Then Tuesday we could (should) go down again in the morning to retest today’s low (should make a slightly higher low but not guaranteed of course).

Then I could see a rally start the rest of the day as we all know how trick “Turnaround Tuesday” is. I’m out of all shorts now and will wait for another setup to go short or long… whatever the market gives me.

Last week I was very bearish thinking the market topped at the prior high of 2011 but we made a new high so now I’m neither bearish or bullish on the bigger picture. I’m just playing it day to day until I get a better read on the charts. I will say that we could still go up to the FP on the NYA of 11330 before topping (as hard as that is to believe… LOL).

... Red Dragon Leo

It’s certainly should make investors uneasy I’d think…

... Red Dragon Leo

Yes, I bought put a day early but I’m happy I’m short.

... noclue

CBOE skew index (black swan event predictor) is at 52 week high………actually over 3 year high….

... Scott Gifford

Red – Good Call!
Are/have you bought puts ?

... Scott Gifford

to go long market

... Red Dragon Leo

Possible FP on the SPY of 202.45… which we could hit on some rally up right after Alibaba goes live.

... Red Dragon Leo

Buy zone for what? The TVIX or some long on the market?

... Scott Gifford

yes my buy zone is around the next employment report for a bottom.

... Red Dragon Leo

Makes sense to have one more higher high within the next 30 days to hit my FP on the NYA of 11,330 (about 2050-2055 SPX). So we probably drop some next week and the week after and then back up to that FP?