The stock market drops a few small treats in the bags of the bulls after one of the worst months in stock market history. For October, SPY is down about 24%.
//edit: actual decline was more like 17%, 24% was the decline down to the low for the month.
It is easy to second guess my non-action since October expiration on the 17th. What is more useful is to think about what comes next. My best guess is that the rally has a bit more to go in the short term, but the that new lows are on the menu later in the year.
A couple of days ago, Bill Luby at Vix and More (link) wrote about "The Fear Bubble Bursting." An interesting concept, a bubble of fear, that manifested itself in huge option premiums and high VIX readings.
No current trading positions.
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