Gotta love ZERO RISK in the SP500 = $$$
- Thread starter makloda
- Start date
What happened to all the longs that went in yesterday? Are those longs stopped out or are people adding more to losing positions and taking massive heat? All the talk on here of making money on longs as the market goes lower and lower every day for the last week seems a bit disingenuous to me. I don't see any posts that anyone has gotten clobbered since buying yesterday afternoon. So everyone has unlimited deep pockets and can keep buying until getting back to even? The sad truth is that a real market downturn, by the time it is over, there is nobody left in the buy the dip crowd as they will have all been wiped out. ONLY then a new bull market can start to roll. Nothing goes the moon forever no matter what people would like to believe, and the zero risk trades in the past week have been only short trades.. Just my 2 cents...
I can only speak to myself but been able to average down and sell on the bounce back. Overall this sell off isn't huge by any means though if we got down 5-10% i would lose a lot and stop out but that seems less likely.
To your point though about averaging down, if this market did trend lower I think a lot of people are averaging down since buying the dip has been performing so well for 9 years now that is will take a lot to change that. Mohamed A. El-Erian wrote a article discussing this in the january or february market volatility and that BTFD was still the go to approach.
Where have you been for the past 2 years. I knew once we got some big down days someone would show up mocking whats been said. Sure enough here you are. The trend is still up until proven otherwise.
I will agree that the BTFD crowd has been in total control this year (except a few days in Feb). I trade a system that depends on the market closing near the high or low of the day to make decent money, and shorts this year have been miserable since it NEVER closes at the lows of the day any more. That has been more true this year vs any of the previous 15 years of my data for this system. So are we in a "new normal" now that no matter what happens money comes in every day to prop it up? If so, I need to turn off the short trades on my system as they are completely hopeless forever going forward 
I'm not mocking. I am just wondering how trades are being managed. Others have also questioned about this lately. You showed a screenshot yesterday of a matrix being green by almost 14k on what looked like a 10-lot of the NQ. Did you bail that out at the high of the day or did you add to it at the close when you posted that you were buying? That trade would be down almost 25k right now if you held it. I'm sure 25k is nothing for you, but it would be for many others. If you post entry prices and massive gains you should also post exits or none of it does anyone any good.
Trend are broken on RUT NQ and SPX joined that list today , Dow maybe today or tommorow > maybe you permas should hold of for a while on the martingale dip buying briefly .