What a surprise this is to me, what with the option premiums so high for the move that occurred today, SPY down big, GLD up big. Good thing I didn't bet big on that snippet of analysis that I posted a couple of days ago.
Some margin calls can be expected with a move like this, so further selling may occur in the weakest stocks. Traders short gold or oil may also face margin calls and be forced to cover. This is one reason not to try and call the bottom in stocks or top in oil. The other reason is what I have always written, that calling top or bottom can be entertaining, but usually isn't profitable. Very few traders have that magic touch of calling market turns, and I am not one of those few. I prefer to trade after the dust has settled or the news is out, and support and resistance has been established.
With the downside momentum, support for SPY at the March lows (~125 support vs. 128.3 close today) looks weak. The way things look now, I would not be a long term buyer at that price.
Positions: short RIMM hedged
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