Schaeffersresearch.com: Reasonably bullish as the indexes are trading at the bottom of the range and right above major supports. “With equities pulling back to potential long-term support areas as negative sentiment continues to grow, now is a good time to add equity exposure to your portfolio for a potential rally back to the resistance areas discussed last week. But be careful if there is a break of support, as short-covering activity or a shift from other assets will not be as urgent, undermining the potential reward for the risk you are taking.”
ChartAdvisor.com: “The market is in a very dangerous position right now and traders should be looking to protect their capital rather than gaming a bottom.” This site is generally more conservative and analyses fewer parameters than the Schaeffer’s.
VIX: 41.25
My take: It wasn’t a surprise that the market sold off last week, although the degree of the sell off is still a bit unsettling. I think the probability of a bounce back from here is greater than going further below. I’ll continue to hedge with short calls, although I will use OTM calls (which leave room for a rebound). The key to investment success is that I look at the long term return. If you need that money now, then stay out of the market.
This is a little something I must do more research into, thanks for the post.