Switch is made I

The market was very volatile today. VIX jumped 10 points. The Dow dropped over 600 points. My SPY puts certainly made some money! It feels good to follow the technicals and execute - over 600 points down and I hardly feel any negative effects. Now I did miss taking some of the down positions I should have.. they went right by me and are beyond my grasp. I will have to wait for a pop to get back in.  My GLD position has been quite positive and I think I will place a stop loss on it or just close it out soon.  This market is starting to look like it is now heading to a capitulation this week. Capitulation is when it goes to an extreme and then turns right around. One big reversal day and the traders will switch sides and go long, at least for a few days.. till the buying dies out and fresh selling feeds the downward frenzy again.

I cannot remember a drop coming this fast and this big from where it started..  The US market has caught a cold and global markets are all affected. GLD, Silver, cash and some bond funds are the only havens open. I am glad I am now mostly out and sitting with a small down bias plus GLD. But I don’t want to hang on to GLD for too long as we all know what happens when this ship turns. Most currencies are taking a hit– except the Swiss Franc (FXF exchange traded fund). Time to take a deep breath and be glad that I am not part of the circus.