To anyone who is new to paper assets I would hoard cash and wait for a bottom to form. As many have posted above, once VIX settles and the virus fears are over feel free to buy whatever your heart desires.
To my more sophisticated guys out there i would advise you to drop whatever you are doing and go back and listen to the past 2 months worth of Macro Voices podcasts. Erik Townsend is one of the best in the business and has called this cycle the entire way.
Personally i think today was one heck of a dead-cat bounce. If you listen to any of the reports coming out from italy and madrid we are undoubtedly going to have an enormous healthcare crisis in multiple parts of the country. IMO the market has not even remotely priced in the possibility of NYC hospitals enforcing triage and the utter carnage this virus will have on unemployment and GDP numbers. You can have the printing press running wide open but it is not going to solve the healthcare crisis that is coming and the market will ultimately price that in. The rally might have some legs left to run but they won't last long.
I am looking for ~1600 on the S&P by the end of may. Currently loaded into May/June SPX puts at 1600-2000 strikes. Have limit orders in for acquiring long positions in SPY dollar cost averaging from 2200 level down to 1800. Good luck and God's speed out there.
Ohh P.S. for anyone looking into E&P companies, I would highly recommend checking the hedging positions and balance sheet of any US shale player before buying at these lows. Truth of the matter is a lot of these companies won't be around in 12 months. I saw someone earlier post about buying OXY...PLEASE DON'T...they have an absolute insane amount of debt maturity coming up from the Anadarko purchase and i don't see it ending well. The cleanest shirts in the dirty hamper to me are EOG and PXD. Best balance sheets in the biz and right now cash is king for US shale players.
