How are you positioning for the eventual Market top?

Quote from Ivanovich:

I'm not positioning for any top, because doing such is foolish.

You very well may be right. But you've got to admit that *statistically*, the odds have got to be in your favor if you start leaning to the short side now.

I certainly don't suggest betting the farm here. I'm simply looking to wade in slowly, and wait for further confirmation before committing more capital...
 
Quote from failed_trad3r:

we wont see a meaningful pullback until 1400


That I have to disagree with. There is going to be one of those unexpected sell offs that take everyone by surprise, even the bears.
 
If I had a lot, and I mean a LOT of money and wanted to put it in play with the idea I'd be experiencing some big pain in the meantime, I probably would do what you say. But this is a new ball game, with a government that is quite literally fixing the game so shorts wont win. That means all kinds of risks. What if they decide to outlaw ALL shorting, because they damned well know that the market is propped on nothing but the printing press. What do you do then?
 
Quote from Ivanovich:

What if they decide to outlaw ALL shorting, because they damned well know that the market is propped on nothing but the printing press. What do you do then?

I would wait until the 5% gap the next day then sell futs with both hands...:D (remember the ensuing action last time they tried that move Ivan?)
 
Quote from Ivanovich:

If I had a lot, and I mean a LOT of money and wanted to put it in play with the idea I'd be experiencing some big pain in the meantime, I probably would do what you say. But this is a new ball game, with a government that is quite literally fixing the game so shorts wont win. That means all kinds of risks. What if they decide to outlaw ALL shorting, because they damned well know that the market is propped on nothing but the printing press. What do you do then?

not to offend your sensibility but outlawing all short selling has happened in the past in 3rd world countries when their government and economy have faced dire circumstances.
to extend your hypothesis the closing of the exchanges is not beyond the realm of possibility if the US government decides to seize all financial assets under the guise of preventing chaos.
 
Quote from Sean McLaughlin:

Interested to get some thoughts from traders here on ways in which you are preparing to profit from the eventual market top that we are getting closer and closer to every day?

I don't know when that day is coming. But we are most likely much closer to the end than the beginning of this rally and will likely see as much as a 20% correction when it ends.

I'm starting to dabble with buying Puts in SPY, keeping my risk small. With the plan of pyramiding my position if/when the turn comes.

What are YOU up to?

Puts do provide principal protection and you at least define a floor/maximum loss. You can sell OTM calls to help offset the cost of the insurance and still provide for upside potential up to the strike price of the call.
 
Quote from charlie daniels:

This market will be taking out highs within 12 months.

mark my words!


Only 2 posts and you want everyone here to mark your words?

:p



charlie daniels


Registered: Mar 2010
Posts: 2
 
Quote from S2007S:

Only 2 posts and you want everyone here to mark your words?

:p



charlie daniels


Registered: Mar 2010
Posts: 2

If the number of posts were a sign of intellect, well, let's just say that would really be funny based on this forum.
 
Quote from S2007S:

Only 2 posts and you want everyone here to mark your words?

:p



charlie daniels


Registered: Mar 2010
Posts: 2

that is how they talk on yahoo finance chat.
 
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