Make it a Six-Pack

Make it a Six-Pack

2:05pm (EST)

We knew another test to lower support levels was inevitable today as futures were pointing towards a nasty open before Europe’s markets even opened. The game of chicken to solve the eurozone’s debt crisis heightened after Germany and China exposed some more problems. China’s manufacturing numbers came up short of expectations and a poor bond auction in Germany has the bulls reeling once again.

The downside momentum has pushed the major indexes lower by 1.5%, on average, as there seems to be little hope the bulls will reemerge today, or on Friday for that matter. The good news is we have been expecting the current slide which is either giving us a great opportunity to go long call options, or we will have a chance to play an impending implosion by next week.

For those who are scared to play the downside of a market crash, don’t be. We have proven over the years there is just as much money to be made by playing the downside as there is to the upside. And if there is an upside, which there could be, then the rebound off the current lows could be breathtaking.

We opened 4 new trades for our Weekly Wrap and we plan on opening at least 2 new trades on Friday for our Daily newsletter. The market is closed on Thursday for turkey day but will be open a half day on Black Friday. Trust us, there will be some super cheap option plays on sale that could bring us a merry Christmas and you won’t want to miss them.

Remember, the market is acting just like it did in August when the selloff lasted 7 days. Then we had the mother of all rallies. We may have another day or two of selling pressure but by Monday or Tuesday, the rebound begins, or the waterfall gets heavier.

We will be back on Friday morning with our next update and to give a briefing on today’s action and what it means going forward. As we head to press, we nailed it again. The Dow is down 188 points to 11,305 while the S&P is lower by 21 points to 1,167. The Nasdaq is showing a decline of 50 points to 2,471.

Subscribers, check the Members Area for the updates.

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