Friday, August 21, 2015

And yet, the Russell 2K....

As new readers might have noticed, if I hardly post at all, it's because there are no opportunities and I'm not interested in wasting your time; but when I suddenly start throwing charts at you one day, it's because there's an opportunity available.

So with all the gloom in the market, why hasn't your doomer buddy told you this:

The last candle there is white. That means (as of the moment I got this chart, anyway) IWM is green on the day.

If the world is so horrible, why is the IWM trading above yesterday's close?

I took some losses on (2x SPY ETF) and (IWM ETF), so I could buy $30K of (short $VIX) when $VIX was at 23.74 and XIV was at $38.35. Seemed like a slam dunk, eventually at least, with SPY and QQQ down -3SD, and R2K showing what could be mistaken as relative strength.

If all goes well, I'll make back triple the booked XSU and HSU losses as HVI recovers.

Though it could be, if today sees continued puking into the close, that Monday starts the day with an even bigger heave to solidify a final bottom. Never mind, there's got to be a reversal of this silliness.

Other stupid opportunities, if you're looking, might be a Japan ETF (EWJ is about 8% down with utterly no good reason), Ford (-3SD and sure nobody's ever going to buy a car again yeah right), DIS (down 20% and yeah sure nobody's going to buy ESPN in the new cable TV world order that's so totally a 20% hit to earnings), SCHW (down 10% and god forbid nobody's going to be banking ever again), my god just looking at this silliness makes me shake my head.

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