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Stock Market Crash

I guess it was a crash (is there an official, rigorous definition?). The Dow fell 416 points today and that is certainly a huge drop. I already hear people comparing it to the crash of 1987. I'm not sure that's valid. The Dow dropped more points then (around 600) than it did today, and as a percentage absolutely dwarfed today's drop. 1987 was a 24% drop, and today's was 3.29%. That's a significant difference.

I got bruised a little. But it wasn't too bad because I've been expecting something like this. The market has been rising for quite a while and we've been due for a correction, if not a bear market. On the down side, I bought a couple of stocks yesterday that got stopped out today.In fact, all of my regular stocks (as opposed to ETFs) except for Apple got stopped out.

On the other hand, I had started getting risk adverse. I've been  keeping a larger percentage of my trading portfolio in cash, and as I'd mentioned in a previous post I had purchased the ETFs DOG and SH as a hedge. DOG and SH respectively short the Dow and the S&P 500.
They showed a profit for the first time today.

I also purchased a future on intrade today for the Dow closing down 100 points or more. I made an eye-popping $3.20. As the old zen koan says, "How sweet it tasted."