The Fed just said that they’re going to pursue ZIRP for an extended period of time, thereby signalling that money is going to remain cheap and leverage will be easy to come by.
The markets were sold off so hard on Monday that over 80% of the stocks listed were trading below their 200 day moving average, and the VIX was over 40.
I bought with both fists. Depending on what the overnight action brings, I might be buying more tomorrow.
I own a couple of puts on the vix. We’ll see where it goes.
I don’t think we had capitulation yesterday. Buying in either direction is very risky. Today volume in NYSE was over 8.55 Billion shares. The last 20 minutes was remarkable. Its a big boys club, you and I are not in it.