Here is why the market dropped=READ

[rallymode]

Quote from menelaus:

The only way to play the markets for the next year is long gamma, long overdue.

Yeah, long gamma at 20 vix, awesome advice.

 

[Steelhead]

i had a funny feeling yesterday after the mkt failed to get anything going after those 2 massive LBO's

 

[tommymoose]

I did too... when the largest LBO fails to keep the market up theres some people that really want to sell. Oh well, coulda woulda shoulda...

 

[rtstrading]

Quote from just21:

http://www.nowandfutures.com/buscycle.htm

This guy called it in 1999!

Absolutely scary! :eek:

2007.15... 02/27/07

 

[ammo]

was strange yesterday with 130 pt drop in djta that we didn't sell off yesterday,todays lo in dow and spu touched support line of feb 04 and may 06 his

 

[seasonedpro]

Speaking of gamma, there was chatter on some desks a hedge fund got stopped out of a huuuge short gamma trade and had to liquidate a couple hundred billion in positions. Not the reason for the selloff but maybe exacerbated the depth.

This whole market has been built on illusionary liquidity and the subsequent private equity bids that have legitimized these valuations. Selling premiums, exploiting the carry trade works until it doesn't. The global economy is in serious trouble if the group think that got us here decides to reverse itself.

 

[MaxLD]

Quote from tdubnik:

Bob Precter of Elliot Wave Theorist has been predicting it for about 12 years now. Maybe He finally got it right.

Not a very good Market Timing model in my estimation. I wouldn't bet on the "Wavers" getting it right this time either.