Although the /ES and /NQ have been flipped from green to red all night long, the small caps, my biggest and most aggressive position, have been steadfastly red. As I type this, half an hour before the open, the /RTY is down almost a full percentage point (which qualifies for a “crash” these days).
Looking at the larger picture, I’d say this is shaping up to be a terrific trade.
Also, a tip o’ the hat to Slope’s own The Director, who kindly shared with me the tweet below. This is a compelling analog. Of course, if you read the reactions to this tweet, it’s the same kind of permabull idiots that can’t stomach the idea of a down market with a truckload of ad hominem attacks. One of the loudest arguments is that one chart is over 3 years, and the other over 10. Well, numb nuts, that is utterly legitimate. Analogs need to agree in terms of form; time is virtually immaterial.
Here’s my very, very quick ‘n’ dirty analog for the Dow:
