The long awaited correction is imminent, the only things that is up in the air is the question of how deep. I've heard anywhere from 2% to 4%.
My experience tells me that it will be steeper than that. It has to be in order to panic out a lot of the new money that has been chasing the markets higher.
All the signs are out there that point to the inevitable happening. Be a smart investor and at the least protect your profits by selling calls, buying outright puts, or even short pairs. Don't look back in a week or two and regret not being smart.
The opportunity to increase your financial position is right in front of you, and if you act on it you will look like a hero. How many people do you know that make money when the market goes down?
I know a lot of professionals who lose money on selloffs also.
Take from it what you will, but I believe we go down hard and fast to test the 1475 level, which is right under the recent selloff support around 1490. That's what is needed for a good wash out. May even see 1450 if 1475 doesn't wash out enough weak hands. Look fro a vix spike to the 22-25 range.
I will be buying on this dip because we are going to rip higher again, quickly, to take out the all time highs on the S&P 500 and the 52 week highs on the qqq.
Good luck to all!!
Disclosure: I am long TZA.
Additional disclosure: I am short the markets.