We are now in a market where any bounce cannot be trusted until we can close with gains.  Selling continued today as fears over Ebola continues to rise.  The W.H.O. and C.D.C. have now contradicted each other over how Ebola is transmitted.  Fear is certainly on the rise, but we have yet to see panic selling from the market.  Sure, the VIX is above 20 level and we have seem some heavy volume selling.  Panic sets in when the VIX moves above 40 and we see a huge move lower in big, big volume.  At the moment, we remain in a very dangerous environment for those who are long this market.  Our index shorts are working well and we will continue to execute our strategy to navigate these markets.

We have warned in past commentary to avoid trying to be the hero in this market.  Had you been trying to bottom tick this market would have led to heavy losses as of late.  There are plenty of traders we see across the internet trying to pick the bottom.  Buying the dip has been profitable in the past, but is this time different?  It has been so far and with Ebola and QE ending at the end of this month we certainly have catalysts to spook traders.  At the end of the day it is best to stay patient and wait for trading signals.  Do not be a hero.

Earnings kick into a higher gear this week with JPM, C, and WFC report Tuesday morning.  INTC will report after the bell on Tuesday.  It will certainly be interesting to see how this market will react.  Typically, earnings are always best at market tops.  While many look for earnings weakness as a sign of a top will miss the short side completely.  Earnings in 2008 were not so bad until we had the financial collapse beginning in September of 2008.  Earnings in 2000 were solid.  It was not until the market rolled over did we see earnings fall.  Do not look for earnings to signal for weakness, price will do that for us.

This market continues to remain in a danger zone.  It will take some time to repair the damage done by this selling.  Stick with the game plan and stick with Big Wave Trading.