01-21-2016, 06:58 AM
It was tempting to buy some of the medium sized companies that have sold off already way before the indices started to keel over, the likes of JKS, SPWR, CTRP, ELLI, MU, DATA, stuff like that. These are already deep in bear territory.
However, for now we stick to shorting VIX futures half a year out. VIX is mean reversing and it's difficult to imagine there won't be a period between now and July where calm returns to the markets for some period to get the VIX back under 20. If the worst comes to the worst, these future positions can be rolled over, although that's not likely to be free.
No green close today, we're likely to retest 1830 on the S&P, so we keep plenty of powder dry.