Finally, a correction.

Anything could have sparked this. Markets were far over-extended. I've been predicting a China-based correction since February 6th. I don't want to catch a falling knife but there are some early opportunities here. I really like UltraShort Dow30 ProShares - DXD for playing this correction. Simple: buy here and sell when the panic's over.

The real question is will carry trades continue to unfold? I don't think so. Today was a panic, but not an over-reaction if that makes any sense. As Kensey once said, "It takes a long time for a tree to grow, and a day to cut it down." That's the nature of correcting markets.

I'll be looking for continuation trends. I'm very happy with my MDY puts. I'm short on TTEC and ICE as you know. Long on the &euro here and short USDJPY. I'm expecting more ¥ strength before this is over.