Schaeffersresearch.com: the markets now look pretty bearish. However, there is some hope: VIX is still below 50 (a critical area to watch).
Chartadvisor.com: bearish.
My take: the markets remain very choppy. The real question is whether we have hit the bottom or not. More and more market players are turning bearish, even the bunch at the Schaeffer’s. Unless you face a margin call, my advice is to stay put and continue to sell your options against the shares you have (for regular income). I’ll continue to add more positions (in a covered call).
This is actually getting pretty interesting to me. I have been doing well since Jan. 2009. The question was how well my strategy can weather a bear market. We may or may not be in a bear market yet (but even if not yet, we are pretty close).
See my account performance.
