Friday "Hot potato" sell off routine.

K

KINGOFSHORTS

I would not be surprised if you see a big sell off in the afternoon before the weekend. No one wants to hold equity hot potatoes on a weekend, who knows what new surprises get announced over the weekend to spook the markets come monday.

Options activity and tape show looming selloff coming soon.
 
Line of scrimmage crossed, canary stocks and options very bearish. Algos will dump en masse and we are going to close in the red. This right now is the eye of the hurricane point for today.
 
Quote from shortie:

fear of holding longs over this weekend might be worth something.
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Unfortunately, same thing was said from March 09 and proved fruitless. As a stand-alone argument, invalid.
 
I`d say enough down days have occurred and you are now sufficiently trained enough to get short on the rally, plan for the dump, and then they rally till the close after this congestion clears up. :D
 
Quote from Trvlwanderer:

Unfortunately, same thing was said from March 09 and proved fruitless. As a stand-alone argument, invalid.
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respectfully, i beg to differ: :D
**edit** today is not a down Fri, so the study is irrelevant. but it is relevant as far as the cost of weekend fear when Friday is red.

Quote from shortie:

i posted this before from the Quantifiable Edges. Buying Fri dip has been easy money. So who went long last Fri?

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http://quantifiableedges.blogspot.com/2010/03/after-down-fridays-over-past-year.html

"It is important to understand that this is what I often refer to as an “environmental edge”. In other words, it is something that has worked in the recent past and seems to be a result of the current market environment. It is not an edge that has persisted over a long period of time nor do I expect it to continue to persist for a long period of time from now. That doesn’t mean it isn’t a useful observation, though. In such cases where I believe a setup contains an environmental edge I will look to use it to my advantage until it appears to be losing its effectiveness. Of course I do this with all edges, but environmental edges are on a tighter leash than others."
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