If the situation overseas gets worse, European stocks are about to crash.
I do not have a timeline as to when but 4-6 weeks is a good place to start.
But with the moves in the market today, it is looking like the biggest headwinds are going to hit Europe before effecting the S&P.
We went over the flash crash logic yesterday and this is a continuation of that based on the info we got today, but the point here is to highlight the various ways to get exposure to European equites and to monitor these plays over time.
I go over the trades that I made today and that I will be following as this situation develops.
Understand the risk in foreign equities and any commodity plays right now, because all of these plays can move down 50% from here.
The key to first two trades is that they are ETF's that are holding European equities.
You can get exposure to the FTSE & Germany through stocks on the S&P, but the ETF structure allows us to get as close to shorting the European equities as possible.
Then the final trades are the Brent crude and commodity plays that we have already been hitting this year like AA & NUE.
The point is the global economy is sensitive now and the weakest link is Europe & Germany as far as developed markets are concerned.
Of course this is all just my opinion, so I am ready to be wrong and let's see what's going to happen!
EITHER WAY ITS GOING TO BE EXCITING, SO I HOPE YOU ARE READY!
POST YOUR WATCHLIST BELOW AND SEE YOU IN THE MORNING!
