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Wednesday, January 6, 2016

Ready for a much better buying opportunity

I was hoping for a big gap down yesterday but it didn't come. However, it came today with a 30 points decline for S&P 500, making it quite oversold. Buying a bit today was already not a bad deal and then the panic selloff came again from China tonight: within just a few minutes of opening the China's stock market tanked over 5%, causing it to be halted for the day. This has hit the US future market. As it stands now, S&P ES is down over 20 points and counting. I hope this can hold overnight till tomorrow. If so, it will for sure bring down S&P to around the 1970 level or lower, and VIX will likely shoot up quite high. This will create some extreme oversold condition with panic sentiment. I like this kind of condition as a trader and will be buying into this oversold condition, anticipating a quick oversold bounce that for sure will come. As I said, the market will eventually go down much further and more but it won't be a straight line downward. After all, the world has a habit of not ending!

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