The S&P broke the last major resistance left this morning before even the permabulls have to admit that some version of the "Bear" is here. Next stop is above 1325. So I am doing my best to clean up the mess I made this week. Still holding those AAPL calls, but hedged them with SPY puts this morning for a double before covering just before lunch. The market is now back towards the lunchtime low and at that inflection point that determines whether the day is bad or a complete disaster.
One thing is for sure. The volatility indexes are still a mystery. The market has been in freefall and the VIX doesn't show it. One thing that the trend does show, is that a bounce is overdue and another point on the VIX sets up a triangle. So don't hold those trading shorts too long.
The whole BioPharma sector is taking a bath today. APPY is down on no news, so added some more below $7.00, knowing that the stock won't stay there long. BOLT (formerly BTJ until it's move to the Nasdaq this week) is also in a freefall. I think that investors have lost where the stock went. The volume is way down - probably a lot of computer programs still trying to trade the old symbol. I will buy more of BOLT to average down, but want to find a bottom first.
Any put buying or short positions that I apply is for a daytrade only at this point until the oversold position gets relieved.
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