Market Correction Is On Our Doorstep – We Could Hit An Air Pocket Today Or Friday

I RECORDED THIS VIDEO THIS MORNING - PLEASE WATCH IT Posted 9:30 AM ET - We are seeing bona fide selling and the market will break major support levels today. The long awaited correction is on our door step and we could hit an air pocket today or tomorrow. Asset Managers will pull bids and gauge the selling pressure. Option expiration could fuel the selling as traders adjust their positions The FOMC minutes were deemed dovish, but the truth rings loud. Global conditions are so weak that the Fed can't raise rates. The PBOC has been supporting China's market to no avail. Fiscal spending and monetary easing used to spark big rallies, but not anymore. If China's flash PMI falters Friday, we are going to have a decent drop. That will take out a 200-Day up trend line and horizontal support. I am primarily going to be buying SPY puts BUT I AM NOT GOING TO PLOW IN. I AM GOING TO TAKE MY TIME AND SCALE IN ON CONTINUED WEAKNESS. THERE IS STILL A CHANCE THIS DROP WILL NOT MATERIALIZE It has been almost impossible to short this 6 year bull run. That is why I am going to focus on SPY. It is one instrument and I can quickly get out if conditions change. If I am short a number of different stocks, I will be scrambling to cover if we get a bounce I will buy a few puts near the open and I will use SPY $207.80 as my stop (200-Day MA) If we rally above it, I stop out and I will use it to get back in when we drop back below it. If we make a new low after the first hour I will add to my puts. If we drop below $206 I will add. If we drop below $204.40, I will sell my puts. That is a likely resting spot at least for the day and I can take monster profits if we get there. Chances are we will bounce Friday if this scenario plays out and I can reload. This could be a great shorting opportunity, but I use extra caution on the short side SPY $206 and $204.40 are important levels. It has been impossible to short this market, but we might have a very nice 2-3 day opportunity right now. . .

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