From Tuesday's PRO Update: "Before the market snoozes into its long holiday week off, a quick look at UVXY. Noteworthy is the prior high of 17.25 which could act as stiff resistance against any move up from current levels. What would make things more interesting would be for 17.25 to get left behind in the dust of a sudden spike in volatility. Because I don't expect it, especially this week, it is worth keeping an eye on. Remember, global markets don't take Thanksgiving off, just we do." Today is already being called "Red Friday" and if it doesn't relent by the close of trading we have to be alert for another Black Monday a la October 19, 1987. Being alert is a euphemism for carrying a short position of some size over the weekend and/or adding to the position on Monday. Pushing the narrative is a theory that a new Covid strain is impervious to not only vaccines but possibly natural immunity. The other less obvious but possible narrative is that the bull market from the lows of the 2009 financial crisis to last week's Dow high 36,655.73 is not only over, but is crashing back down. Pick your poison. UVXY, our trading choice for being short the market, gapped-up 15% at the open, taking all of the calls we have been looking at up triple digits. For now they are a good hold until we see how this ominous start of the Christmas season plays out. New positions should be in Dec 17th $20 and up. A deep dive in the global markets could be the volatility spark we had been looking for to take UVXY above $40 (Dec 17th $40 = $0.60, +400% today) TSLA may be offering up one of the best "dips" yet for adding to existing positions. Here too it is best to stand aside as far as adding to positions, for a few days, to see how the madness plays out. Whereas just a few weeks ago I thought anything under $800 was a steal, now anything under $1,000 could be a snatch and run. Under $800, grand theft auto. Half day of trading today, probably a good thing giving the weekend a chance to sort things out. This is either a one off news event driven dip, or, the start of something much, much bigger on the downside. If the latter, there will be a lot of days like today ahead.
