The market has turned into a headless wonder, as it moves up or down by what used to be called 50 big points, but is now just 50 cents. The market dropped huge on Monday, bounced up big on Tuesday, before crashing again on Wednesday, and now on Thursday it is up 400+ Dow points, or about 50 SPX points as I write this.
This week is supposed to be the first week with Dow 30 moving by 500 point x 3 in a single week. We are currently on pace for our 4th in a row, for context of the real market volatility. This is at historic levels of volatility by some measures. The whip saw action has seen the implied volatility rise in options across the board.
Speaking of options, I am still holding my “Buying Blood” trade put on when the market was down 6% on Monday at close. At this point, the trade is in the green. I will be unwinding it by Friday.
It is time to find a less volatile way of being long this market.
Update: I closed out the Buying Blood trade today near the close for 100% gain in 72 hours. Currently in 100% cash now.