At the closing bell on Friday, I noted that so many of the World ‘s Bottom Callers (I even traded a few SPYs and QQQQs for a small loss) were too busy looking for a tradeable low, that it was unlikely to happen.
That seems to be the case today. Futures are ugly, and we are quite likely to see a hell of a whoosh down at the open.
Will this be a Black Monday? Is this the one? It likely depends upon whether the buyers step aside and lets this bad boy play out.
Puts and VIX calls remain the best play here . . .
Incidentally, as the day plays out, start thinking about who the goats of this market "correction" are. Who got it bass ackwards? Who nailed it? Who remained stoically Bullish in the face of all manners of evidence to the contrary?
Inquiring minds want to know: Who cost the public money, and deserved to be tarred and feathered when this thing goes to Hell?
Use the comments, and please avoid saying anything that will get you sued (this is a public unmoderated forum) — just the facts, please.
UPDATE: May 22, 2006 9:18am
Perhaps this discussion of Goats is premature; I certainly don’t want anyone to take this as gloating or arrogance or anything like that. While it is still fresh in our minds, I simply want to ask the informed and erudite readers of this blog who is worth watching in the future, and who is a fade.
Lots of people revealed their colors during the move off of the 2002/03 lows; Consider how powerful it is to know who got it wrong — and who nailed it. That’s knowledge worth having in the future.