I think it sells down more, possibly breaks $220 too. But gauging by the growing cacophony of frustration seemingly everywhere tells me we are closer to a bottom than we may think. It’s usually when sentiment is totally shot—the black after the darkness—that things turn around.
How to trade it smartly remains a puzzle for me (when I ask I’m told to make a pot roast
). It requires a different set of tactics than my regular short calls menu. I’m still learning the dance when we’re at the edge of a cliff. Sometimes perhaps best to do nothing at these times until there’s more clarity.
Sure I could have sold all my longs at $265 and rebought them here at $225 for a $240,000 win, but that’s easy to say in hindsight and not really realistic to catch the whole move. But if we start tanking tomorrow I will sell at least half my longs to try it out, even for just a few dollar scalp. I still wouldn’t feel comfortable being totally out over the 3-day weekend. Who knows what new might drop and spike a rebound (one can dream…).