Crash Scenario Unfolding

The stock market Averages, a few global ETF’s, solar, Apple, Google have held so far.

Those are the last things standing. the actual crash has happened, it has been rotating. Homebuilders, Mortgage Companies, Brokers, Banks, today insurers.

The averages are masking the real carnage. I have only seen this type of price depreciation (speed and percent) a few times in 11 years.

The SPY acts the weakest because it has been weighted down by financials. I have blogged this for a year. When technology took over a disproportianate percent of the S&P in 2000, that unwinding took a few years

So you want to predict tomorrow?

I am buying QQQQ calls, but it’s small and I have no great feel and tons of cash at this point. With the VIX finally flying, another probe to the upside seems like a good trade.