Oingo Boingo

Just a quick (and unusual) morning post.

I think the recent sell-off may be done for now. Don't get me wrong. I'm still a doom and gloom, end-of-the-world, may-all-the-bulls-die kind of bear. But when everyone on the planet has suddenly turned bearish, it's time to reconsider.

I've also received several signals from Beelzebub - - who drove Britney to madness recently - - that something was afoot. Most notably, from a San Francisco hotel entrance.......


When the $VIX was single digits, and everyone thought the Dow was headed to 150,000 within a few weeks, that was the time to buy puts. But the VIX has exploded. Puts aren't cheap anymore. And everyone skittish as all get-out. I prefer to stab the bulls when they're not looking.


The cold fact is that there's probably a bounce in here somewhere. I closed out all my Russell puts this morning, and I have no index shorts now. I have a ton of equity puts, and all the charts look great, so even with a bounce, I'm happy to hang on.


It remains to be seen how much more downward movement will be wrung out of this spasm. I, for one, would prefer to see a nice fat bounce, have the bulls rest on their fat, stupid butts again, and then go in for the kill. Until then, let's wait, by George.