Market Irrationality

[SimpleMeLike]

What do you fellow Elite Traders do with Market Irrationality? SPX has gone up from 2476.96 (Jan 02, 2019 Open) to 2802.39 (May 28, 2019 Close). That is a modest 13.14% return!! What are you guys doing to get ahead of this market irrationality, going for those Dec Puts, going all in with DEEP ITM Put Spreads (theta positive always sounds so nice) or playing both sides of the market?

For Gods Sake, you can be riding the train all the way to the top, toot that horn for 3000 SPX -- Just got my hat printed SPX 3000.. I'LL SEE ONE OF YOU POSTING AN ORDER through the AMEX Open Outcry Pit, making some dumbass market for one of you fools... Keeping in mind that the market can stay irrational longer than you can stay liquid? What is your take on Market Irrationality?

IronAndeanCondorSPX,

What does Market Irrationality mean?

Thanks

 

[SunTrader]

Market - exchange of goods or services for other.

Irrationality - See OP.

 

[kmiklas]

Any Economics teacher worth their salt will tell you that people are irrational.

 

[SunTrader]

I don't know any that are "worth their salt".

Most especially those employed by The Fed.

 

[Windlesham1]

Markets cannot by definition be 'rational' as there'd be no order flow-it is just a bunch of opinions, unlike other commerce- selling cars etc. It's complicated but you can be both right and wrong long and short and make money

 

[heypa]

The market is irrational if it doesn't do what you expect it to do. Good grief. You don't lead the market.IT LEADS !!!! What you know is the recent past. What you are expecting to know is the near future. Put out your sign and go into business, PSYCHIC

 

[tommcginnis]

Markets cannot by definition be 'rational' as there'd be no order flow-it is just a bunch of opinions, unlike other commerce- selling cars etc. It's complicated but you can be both right and wrong long and short and make money

No -- and in fact, the opposite. This is the very nature of voluntary exchange, and why trade improves lives. The weaver eats better when they trade blankets to the farmer; the farmer sleeps warmer when he trades pigs to the weaver. The marvel of The Invisible Hand is that, through unfettered prices and voluntary exchange of rational actors, resources move through the market improving utility for all.

 

[SunTrader]

+ 1

It is irrational to think otherwise.