Spano: 1000-Point Drop Coming Soon

“The combination of investor skepticism, a slow economy and a Federal Reserve that keeps talking tough makes it very probable that we are going to get another thousand-point down day very soon. In fact, I am pretty sure we will get two or three within the same few weeks. …

“I believe fear and emotional selling will drive the stock market down into official bear-market territory, however, I have a hard time making a case for anything more than a run-of-the-mill bear market. It also seems to me that there is not enough stupid retail money left in the stock market to take it below the strong support level around 1550 on the S&P 500 for more than a week or two. …”

Kirk Spano and certain clients of Bluemound Asset Management own puts on SPY. Kirk has recommended puts on SPY to subscribers of his investment letter …

— Excerpt contributed by Gregory Iwan

_____________________________________

Z-val: Kirk Spano
Via: MarketWatch
Date: 11/10/15
Disposition: Short-Term Bearish
S&P 500 on 11/10/15: 2082
S&P 500 on 2/10/16: 1852
Change: -11.1%
Judgment: Right (no 1,000-point drops, but bearishness was correct)

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