Doesn’t mean we’ll nail this bottom, but avoiding the emotional trades are key to outperformance…

Another panicked sell off.  The VIX, a measure of volatility of the S&P 500 and a reflection of emotion, is through the roof:

Emotional trading from others brings opportunity to those who remain level-headed.  Doesn’t mean we’ll nail this bottom, when and where it does come, but avoiding the emotional trades are key to long-term outperformance.

Let it play out as it will.  Build on weakness and hold onto the banking sector puts as they increase in weighting as the markets fall providing ever bigger hedges for us.

This is when you have to stay in the game to win.