Hello Followers and clients!
Just want to put out a quick update about the market mayhem. China was an excuse to finally see a real correction in US markets. US economy is not in dire straights and we should not really see any major hits to our economy from China's woes. But a crash based on a foreign economy is unprecedented so it will be interesting to see how it pans out.
We came into this correction with more than 50% cash but we still took a drawdown. Currently it is recovering quickly. I saw no point in closing at lows. Some folks will have been hit hard due to hard stops and margin calls, so we are in better shape than many others. I added a bit of XIV as quickly as I could get the platforms open this morning. They were having some trouble with all the volume and volatility. IB performed much better than TOS which says a lot about IB.
Crashes are always an opportunity to get some real bargains but I don't think the opportunity is over. In my experience, crashes like this usually bounce before returning down to the scene of the crime and creating a double bottom that sees a real opportunity. We have plenty of room to take advantage of that and I intend to do so.
I just wanted to take a minute to alleviate any fear. More later.