Though I predicted the market was coming down and sold all my stock and was in the safe zone, I did not capitalize on the situation. One way to do it was to short the stocks but I was reminded talking to a colleague my lost knowledge about stock options. It is better or best to short the market by buying some puts instead of the stock itself because the money that one invest and takes risk is substantially less than shorting the equity directly.
I should have bought some puts of the restaurant industry that peaked and was falling down its 30 day averages. The best thing is to look at the S&P see if it crossed the 30 day average and if it has crossed it that means the average mood in the market is selling. Especially after a rally and during these times of uncertainty it is a good indicator to short stocks. There was something in my mind that was cautious about risking my original capital in shorting the stocks directly. Though there was not much of a danger that risk can be taken with options because the money one invests in options is only 5-10 percent of the original capital and if one is correct one can get almost 500% or more.
One more missed opportunity but am on the safe side during this stock slide. Use your predictive knowledge to your advantage by buying options. Make money. Make money.