people who sold at the bottom last year must be pissed.

[Ivanovich]

The market is going to reverse tomorrow for sure. Want to know how I know this?

I've not been buying anything for the last 50 or so S+P points until today. I finally caved and figured I'd buy about $10 grand worth and sit on it, moving up the stop as it goes.

It'll be just my luck to see it reverse.

 

[Rodney King]

Quote from LVMises:

I know a few ladies (think grandma) who sold at the bottom.

Why was "grandma" in equities if she was unable to accept and handle risk? Equities can and do move by a factor of two in short timespans -- it's happened many times in many places.

You're sure "grandma" didn't get caught with her hand in the cookie jar in 2007/8? In equities when her life circumstances suggested she should have held T-bills?

 

[pitz]

Quote from Rodney King:

Why was "grandma" in equities if she was unable to accept and handle risk? Equities can and do move by a factor of two in short timespans -- it's happened many times in many places.

You're sure "grandma" didn't get caught with her hand in the cookie jar in 2007/8? In equities when her life circumstances suggested she should have held T-bills?

Ummm, but it would be completely irresponsible for "grandma" to go into all T-Bills, and if she's sat on the equities for the past 40-50 years, why would she take the capital gains hit, just because the market has a propensity to go up or down 20-30%.

Most 'grandmas' who have significant equities just live on the dividend income anyways, so they really are largely indifferent to the market price of the underlying stocks.

 

[KINGOFSHORTS]

Quote from Ivanovich:

The market is going to reverse tomorrow for sure. Want to know how I know this?

I've not been buying anything for the last 50 or so S+P points until today. I finally caved and figured I'd buy about $10 grand worth and sit on it, moving up the stop as it goes.

It'll be just my luck to see it reverse.

write some ITM calls on your long equity position quick tuesday morning before IV collapses

 

[Rodney King]

Quote from pitz:

so they really are largely indifferent to the market price of the underlying stocks.

Ummm, then why was grandma shaken out at the low?... Maybe you and he are talking about different grandmas...

 

[pitz]

Quote from Rodney King:

Ummm, then why was grandma shaken out at the low?... Maybe you and he are talking about different grandmas...

Good point, but even grandmas panic, or believe that everything is going to zero, because they lived during the great depression and might know of the Crash of 1929, or the 90% loss that ensued, where dividend income was not preserved.

It is very possible that dividend income won't be preserved this time around either.

 

[spinn]

Quote from Ivanovich:

The market is going to reverse tomorrow for sure. Want to know how I know this?

I've not been buying anything for the last 50 or so S+P points until today. I finally caved and figured I'd buy about $10 grand worth and sit on it, moving up the stop as it goes.

It'll be just my luck to see it reverse.

being a mod on ET must pay well; or maybe its the money Blowinsky pays you to promote his systems but I have no idea how you guys can afford to eat.

futures down 63

 

[Ivanovich]

Quote from spinn:

being a mod on ET must pay well; or maybe its the money Blowinsky pays you to promote his systems but I have no idea how you guys can afford to eat.

futures down 63

Heh...

Being a mod pays zippo. Fortunately I have a full time corporate job with a CPG company.

Regardless, this 10 grand was just "Ok, fine!" money that I threw into a Scottrade account.

I've got way more in my BoA account that is hurting in SDS, DUG, and EDZ. All of this is a cash trade, incidentally. I don't use margin unless in Forex. That's where I play a lot of money.

$10k is just a hiccup.

 

[Debaser82]

Quote from KINGOFSHORTS:

This shit always happens.

I remember back in the 70s people talking the same story. Everyone was pretty much swearing to never touch stocks again and even the magazines had all kinds of stories on the subject.

Usually when Retail leaves en-masse, the smart money comes in and gets in on the ground floor. A massive wealth transfer from dumb money to smart money.


And down the line, the shit gets pumped up, dumb money will go back in for the slaughter and the whole thing will repeat.

This shit always happens, and in 15 years the dumb money will be rushing to buy stocks at over 30 P/E

Give it time. I have seen this before. Look at all the idiots buying stock that earned negative EPS in the dot com era on "Eye balls per website" metrics

+50% of the DOW is already owned by <5% of US population.

How much more do these fuckers need...

 

[noob_trad3r]

Quote from Debaser82:

+50% of the DOW is already owned by <5% of US population.

How much more do these fuckers need...

Probably 100% that way even regular joe cant gain wealth by dividends or appreciation.