Daily Market Snapshot
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| Big downside move in the market. |
The Woody Indicator
(Volatility Indicator $VIX)
 |
| Volatility spiked up into Caution Zone. |
Market Direction Model
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| The MDM has turned predominently red, a sell signal. |
Gold
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| Gold and gold miners continued to tumble as well. |
I think the charts and graphs above paint a pretty clear picture of the current status of the markets. If it looks like a duck and quacks like a duck, it is a duck, or in this case a market correction.
I have been reducing our exposure to risk progressively as this downturn has developed. On Monday, I bought the 2x inverse gold miners ETF in the Long/Short folios; a spike up in these shares helped provide cover and bought me time to pare back our model portfolio holdings on Tuesday morning. All Model Portfolio now have very little risk exposure.
Tomorrow the market should bounce. My market correction call will be confirmed if the market fails hold these potential gains into Wednesday's close. If that is the case, I will once again be inclined to buy inverse positions in the long/short folios.
This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.
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