Taking Hedging Precautions Against a Bounce

The equity put/call ratio was 0.88 today, down from 0.96 yesterday. The 5-day moving average is 0.80. That data hasn't printed on our put/call vs S&P 500 chart, but when it does you'll see the ratio is one standard deviation above the mean and high enough that a bounce is quite likely.

Another good bounce indicator is the percentage of stocks above the 50-day moving average, which is down to March 2009 lows!

As I mentioned, the past few days I dumped lots of the WGO and MGM puts. Today I sold puts against my HOG and REG shorts. Also, I shorted TWM and SDS.