Gotta love ZERO RISK in the SP500 = $$$

der_kommissar said:
I remember the old trick from the last two busts...i.e. pump the Dow, while the other indicies are lagging and then pull the rug out...this was a very strange morning...hard to tell if it would turn into another one of those low volume melt ups that would be reversed next week...the Russell 2000 diverged the entire day, even with S&P cash about 1950...now its ugly.
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Bingo... today was a great example of just that and it will continue down the line as long as they can keep it up. If fact I think there is a small trade there. The arbitrage of long the Dow and short NASDAQ and then as you see the Dow breaking down below its running mean...then just a straight short of the Dow as the QQQ finds some short term supports, as you finish shorting the Dow you already are finding some value in some QQQ components
 
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Up all next week. You heard it here first. I'd be surprised if it broke 1900 and gave the Bears everything they've been hoping for. I mean Cmon - how obvious and painless would that be?

This is a trap and harvest market right now, just ride that comet when you can get on.
 
i960 said:
Up all next week. You heard it here first. I'd be surprised if it broke 1900 and gave the Bears everything they've been hoping for. I mean Cmon - how obvious and painless would that be?

This is a trap and harvest market right now, just ride that comet when you can get on.
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But if Visaria is right and China does cut, then equities ought to poop right through or at least towards current support.
 
i960 said:
"Ought to" are dangerous words in trading. :)
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In trading everything revolves around ought to, no guarantees, just like in your call for next week amigo. I generally would agree that selling near support is not as rewarding as selling resistance, but as we are still in correction phase, so I firmly believe, it is OK to expect a sell off into month's close.
 
Well this is the great thing about trading - we all get to have our own takes on it and when the week is over debate it over the weekend.
 
If you think about it China went up 52% this year prior to slamming down to just below 0% return for this year, so far, 52% in one year is a clear sign of a top, we ought to have seen the writing on the wall after the .com
 
John Boehner's resignation should have pushed the market up but initial reaction was down...just shows how bad sentiment is out there. Thinking of sell off on Monday, back to 1900 on es, but prefer to do the trade on small caps. nikkei long provides some hedge, dollar yen though still in tight range.
 
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