The markets may be setting up for a trade with a significant bullish edge.

In spite numerous factors suggesting near term reversal, for now, until the price action shows positive improvements focus is on capital preservation.

Last Mohicans standing.

Remember, leaders must be shot down in order to have any meaningful rally that has potential to hold.

An old Wall Street saying has it that they don’t “ring a bell” at market bottoms.

Thinking that panic selling signals a low ?
Consider the Crash of 1987, which is the granddaddy of selling panics in U.S. stock market history. On that day, Oct. 19, the Dow dropped 22.6%. And even though the Dow bounced back impressively over the two trading sessions following that Crash — gaining 5.9% on Oct. 20 and another 10.1% on Oct. 21 — the stock market’s post-Crash low wasn’t registered until Dec. 4, more than six weeks later.
Chances are that the final low of the decline we’re experiencing will not be recognized as such until well after the fact.

Keep it simple !

Let’s keep it simple – protect yourself, never let small losses have even the remote potential to grow into large losses, remove hope and your emotion from the process, and finally stay opportunistic. Do these things and you’ll be there to profit more than you can imagine once the storm passes. We’ve been here before and we know what to do.

VIX check.