Debt Ceiling Crash

If we get a big market drop, here is how I would trade it.

PRE-OPEN MARKET COMMENTS WEDNESDAY – The breakout through horizontal resistance on heavy volume last week was a head fake and we have fallen back below $417.50. Traders are operating under the notion that the debt ceiling will be raised and now we are hearing that there is a considerable gap on key issues. VIX has been drifting lower and that is a sign that the threat of a debt ceiling crisis is being discounted by institutions. Hint: The biggest drops come when no one is expecting it because they are not hedged.  

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