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Gotta love ZERO RISK in the SP500 = $$$
- Thread starter makloda
- Start date
this is why other indices should be considered when shorting...the SP500 has stuffed full of mega caps that funds will rotate into 'cause they are safe lol
That's a standard strategy, if you are drowning you grab the biggest log to hold on to.
Whilst investment firms do realise that corrections are part of the game, they don't like them, as they mostly invest/trade long side of equities. So far this is a corrective cycle with an average correction being around 20% they still mostly observe the market from the buy side. Only when & if S&P sheds 20% & locks below it, that's when directional volatility will increase dramatically.
And a big part of the problem is that they can look at the last 30+ years and rationalize how every sell-off was an "opportunity"...the Japanese got a raw deal with all of their ZIRP and monetary madness...they still can't get the Nikkei close to those 1989/90 highs...and there's good odds the thing drops right back down to where it was 2-3 years ago.
this is why other indices should be considered when shorting...the SP500 has stuffed full of mega caps that funds will rotate into 'cause they are safe lol
TF and RUT acting a little better
And a big part of the problem is that they can look at the last 30+ years and rationalize how every sell-off was an "opportunity"...the Japanese got a raw deal with all of their ZIRP and monetary madness...they still can't get the Nikkei close to those 1989/90 highs...and there's good odds the thing drops right back down to where it was 2-3 years ago.
On top of them being BIG on exported manufacturing.
Rememeber ZERO WAGE growth, where is the purchasing power going to come from, 70% of the US GDP is made up of consumer spending!!!!!
this is why other indices should be considered when shorting...the SP500 has stuffed full of mega caps that funds will rotate into 'cause they are safe lol
Exactly...I like Russell 2000's sidekick, the IWN (Small Cap "Value"), led the way down.
TF and RUT acting a little better
yes sold(to close) a few puts about 15 minutes ago...I can't say that I'm pleased with how I've traded this entire downturn (Fed day was the perfect short location, but spreads were terrible) and it's been hard to get super aggressive shorting (at least for me).
Im wanting to sell but I don't know what Monday is going to bring, we could have another nasty opening if we close at the lows of the day today!
Monday will be very interesting. Asia not really buying our growth lies... miners may drop hard, London probably follow through with an Asian drop (another Glencore story)
If they try to bounce it here at any point leading to close I am going to hold decent shorts over the weekend
LABU up 10% since open
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