Whenever the market breaks down on the Friday of a volatile week I am reminded of Friday, October 16, 1987. I was a lawyer in Atlanta watching the market melt down on Friday, only to wake up the next trading session to "Black Monday." "In the five years leading up to the 1987 crash, the Dow Jones Industrial Average (DJIA) had more than tripled. On October 19, 1987—known as Black Monday—the DJIA fell by 508 points, or by 22.6%. Up to this point in history, this was the largest percentage drop in one day. The crash sparked fears of extended economic instability around the world." - Investopedia That I would be reminded of Black Monday, 1987 today is worth sending out to my subscribers. Not that I am predicting anything so dire, just remembering that the market was all over the news the week before the crash, just as it has been this week. Premium Service Options Portfolio If the above QQQ and TLT puts don't see to cover your personal risk going into the weekend, here are some QQQ Puts and Volatility Calls (VXX & UVXY) to consider adding, even if just to carry over until Monday. (Note: The "Barclay's Bank PLC" label is VXX.)
