Why the Market is Headed Lower from Here

Why The Market Is Headed Lower Still

Dr. Thomas Carr

| November 1, 2016 5:56pm

In this short video, Dr. Carr offers his analysis of the S&P 500 following Tuesday's sharp selloff. He has detected a rare but very reliable bearish pattern that could see prices fall even further. We may see a short-lived bounce following Wednesday's FOMC announcement, but any rally is likely to get faded ahead of next week's election. And whichever way the election goes, there is a good chance the markets will react negatively after the news given all the uncertainty going forward.


Here is your game plan for what may be a significant market pullback:

  • sell calls on your open longs
  • reduce holdings in any overextended stock
  • consider buy OTM puts on the major index ETF's
  • buy inverse ETF's on major indexes
  • buy a VIX ETF (VXX, UVXY, TVIX) or short XIV
  • put some money to work in Gold and Bonds
  • go long JPY:USD

Remember, this too shall pass! Blessings, TC

Dr. Thomas K. Carr (aka "Dr. Stoxx")

Founder, CEO of DrStoxx.com and IXTHYSLetter.com


Posted to Dr. Stoxx Options Letter on Nov 01, 2016 — 6:11 PM
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