SPX has taken a hammering and we have seen some extremes in Price Action that are potentially indicative of exhaustive move to fade in coming week/s . Friday was the 9th consecutive day close was lower than open with that extreme the highest since Lehmans collapse in 2008 . 60 day drop from highs another extreme level and stocks above the 200dma under 20% . These levels are areas where i begin to look for a bounce . Will update some charts when my platform is back on line

% under 6 month highs

Consecutive days close under open SP500

All in the same theme . That buying while most are crying ' thing ' with appropriate risk management of course




A key take away here is 2008 lehmans collapse is where much of this would fail , outside this its not the worst place to have a ' go ' . Risk is clearly harder to manage in this volatility and must be taken into account , smaller sizing goes part way to addressing that .

ES hit the 10% below 5 days highs level last few hours here , this is the area where significant historical capitulation lows are made .

Longs today , once swing low is in im expecting 10% upmove inside next 20 days . Willing to add once shorter term intra based regime flips bullish

Well didnt expect 6.5% move of lows inside a day but i will take it . 10% might be conservative . Outright longs and some way OTM Jan calls looking sweet , not so OTM now

I think probably the first time this year where insider buying > insider selling fwiw

Ozquant 

I think probably the first time this year where insider buying > insider selling fwiw

What does insider mean exactly?