We mentioned in the trading room about being CAUTIOUS. We bought spy puts yesterday which are working nicely, and mentioned that I had bought some others. Further, the skf/srs seemed to point to weakness in the financials.
As a result, markets made their high early and proceeded to nosedive the rest of the day. Breadth was positive but weakened all day long, volume was strong on this distribution day. No surprise really, and frankly rather expected. The markets have had an incredible run, and coming up on a holiday weekend more selling could be in in store. VIX was the story today with a touch in the 26 range only to close near 30. The complacency is rather high....after all, it's still a BEAR MARKET.
Have a great night!
by Bagger Vance