It's Just a Flesh Wound

You can come out from under your desks now. The market is closed for the day. Today was inevitable and we all know that. I bought to cover 30 shares of CALM at $24.25. I laid them out at $40.41 last week as the trade blotter shows. A net profit of $484.80 and the account is now worth $2,984.80.
How often can you get to watch the markets freefall in your lifetime? Today is one of those days and it is not fun to see. The VIX ran up to 50 which is totally insane and makes the smart money want to go long the market. Here is how the VIX works.

The common interpretation of VIX movements is that the VIX will rise when fear or uncertainty does, since there will be a greater demand for put options. Conversely, when the market is rising, that typically creates complacency on the part of traders and the VIX will fall as the demand for put options decreases.

FEAR=RISING VIX=FLOCK OF SHEEP BAILING OUT=BABY TRADER BUYS

I bought 50 shares of QQQQ @ $38 near the close today based strictly on the VIX being severely extended.

Rather than watching the market drop in chunks over the next few weeks, it cleansed itself in one big freefall which is the better scenario to the road to recovery. If the short sale rule was not in effect this capitulation would have happened last week. I think I might buy stock in Kimberly Clark (KMB), the distributor of Huggies Diapers since I used about 12 diapers today. 

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