I'm willing to take a small bearish call spread on IWM and bring in a net credit, here's my play.
Optimism tends to drive the oversold, counter-trend bounces, while reality tends to end them.
Many people just can't resist the temptation of buying weakness as they are fooled into thinking it's a bargain, but there's no rush to buy anything right now.
There are, however, some day trades to be had by the nimble and swift.
Rush to be bullish appears to be much more of an emotional reaction than one based on factual information.
Those that could quickly pivot may earn a new set of customers.
With the ultimate damage unknown, the market can't find support.
I continue to shuttle new money into the market on declines using buy-write option strategies.
I believe this is just bounce action at this point and not a bottom, but I'm playing it.
The key is to buy when risk is low and the potential for sustained upside is high -- now is not that time.