The market still isn’t offering any “deals” here in my view: that has to come from lower levels in the days and weeks ahead. A reader asked why if I think the stock market is going down, why not just buy a put with extra time like a December contract? The answer is in the visual attached of the S&P 500.

This simple rule will keep me or you from doing something that will likely be regrettable. This simple rule is do NOT sell short with 10 period RSI under or around 25. Conversely do not enter longs when the 10 period RSI is above  or around 75.  A quick eyeball of the chat attached shows that to be a good rule a large majority of the time. Further add a rule to wait till the 10 RSI raises above 50 to consider shorts or under 50 to consider longs. Again eyeball this or any other chart and you see the efficacy. This is not a stand alone strategy, but it will certainly help you avoid disaster or FOMO. And right now it is saying just be patient! 🙂

Thanks,

Joe