Everyone's a Bull In my experience markets stop going up when everyone is a bull, and they stop going down when everyone is a bear. This correction has only been 5% and once again everyone on the most bearish forum has turned into a bull again. I see no fear and no reserve, therefore I think the S&P correction continues and give the 1590-1600 area a real hard push with a possibility of breaking it. Therefore I am still all in HVU at 7.69.
As far as the part about VIX hitting levels similar to the levels it hit with the debt ceiling, keep in mind that the catalyst for the current volatility is the anticipation of the biggest inflationary monetary experiment in history coming to an end. Take away the biggest catalyst for inflation in history and you get some of the biggest deflation in history which means falling prices.
So i'd definitely say that the catalyst is on the same level if not worse than the debt ceiling. Bernanke just needs to see that the market will fall when he tries to pull the plug in order to give him reason to implement the unthinkable amount of easing and put us into hyperinflation.
All my opinions. GLTA. This is not trading advice so take your own risk.