An Hour From The Close - March 19, 2018

Playing by the book everyone should still have 1/2 of the puts that were stopped out over the past week. That will provide decent exposure if today's decline turns into a rout this week. Two market watchers who I have a lot of respect for, Steve Puetz and Robert Prechter are calling for an out and out crash. This week!   

But who has ever called a crash with that precision? Oh yeah, Marty Zweig on Wall Street Week, October 16, 1987 (If you call a 25% decline in one day a "crash").   

In any case, even if you are left with just 1/2 of your original shorts, you will be fine in the unlikely event they are right. The WORST possible outcome is for a trader who has been waiting years for this kind of opportunity to miss it just because it hasn't happened in over a decade.

If you are underweighted to the short side, make it an easy entry with the SPY Apr $175 puts and/or UVXY, (which is still LONG), and/or the Apr $45 VXX calls. There are all also some puts in the Intermediate Term individual stocks if you want to go crazy.

But don't go crazy, nothing is guaranteed, just be prepared. 

That's my best advice going into the close, just in case tomorrow is limit down. Otherwise, in the days ahead there should be more time to establish positions for a sustained Wave 3 down, if that is what is beginning to unfold (likely).