Well, my caution stated was the correct thing to do and the nimble short positions are all doing fine. I like to see a bit more downside before taking profits. The charts below will show that a bit more selling is ahead of us. Perhaps a pre-market gap down will do the trick. We are not greedy and a few percent with those handy ETFs trading the hourly is ample to trade this sort of volatility.
Breadth Thrust being shown earlier as overbought has dropped a bit but NOT enough to confirm a near term bottom is in. This confirms we should see a bit more selling ahead.
CPCI is indeed amazing as it shows some sort of capitulation or extreme bearishness. My guess is the next downer is a big time buy and several sectors should be considered entering. Meanwhile it is best to concentrate more on Swing Trades until the dust settles. But rest assured that with such sort of levels stunning buying opportunities in equities are awaiting us. It deserves as special article and will highlight the time of entries. Probably by mid October
NYSE TICK is confirming that a bit more room to downside is left
VIX 6 Month
The chart shows clearly the fear amongst market participants and combined with CPCI high levels the best buying opportunity is ahead of us. Get ready !