The Market is going to CRASH!

O

OptionsKyd

Hello all,

This is a thought that came to mind based on everything that is happening. I am not a financial advisor nor is this financial advice. Here are my thoughts on the environment and what we could be in store for and want to hear your thoughts.

Shorting the banks/brokerages and the overall market and here is why.

Brokers/Banks and Retail traders will be on the hook for massive margin calls on retail investors. Also watch the overall market go down because people will have to sell their portfolios to cover said margin calls. People that over leveraged may have to file for bankruptcy, lose their house, lose everything. Since options expire weekly/monthly this could go on for a while and cause massive financial strain.

This is only my opinion and not financial advice.

What are your thoughts?
 
Market can crash at any time for any reasons. But then guessing which industry specifically will crash is another level of speculation. Why not simply buy SPX puts or UVXY calls to hedge?
 
guru said:
Market can crash at any time for any reasons. But then guessing which industry specifically will crash is another level of speculation. Why not simply buy SPX puts or UVXY calls to hedge?
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That's what I was thinking, this could be the catalyst that starts the wildfire, and become a cascading effect.
 
OptionsKyd said:
What are your thoughts?
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You could be right.

Or, the events of last week spark a speculative wildfire among retail traders the likes of which we haven't seen since 1999, and stocks start going parabolically higher as greed takes over.

We will have to see.
 
No, this is going to be another clusterF, thanks to the Reddit raid. If nobody else here has noticed, the main indices have had a very bad week. The Dow alone dropped 1,000 points in 3 days. NASDAQ down what, 600 points? In THREE DAYS. This is getting close to the panic level of March last year, when we had limit down days, multiple times in one case.

I am very happy for all those retail call option buyers who are making money hand over fist. Too bad they are dragging down all the other retail guys who just hold funds. They are killing 401Ks. They are robbing from the rich to feed their own wallets, and not give a shit about the rest of the poor. They are their own start-up hedge funds.

How ironical.
 
Overnight said:
No, this is going to be another clusterF, thanks to the Reddit raid. If nobody else here has noticed, the main indices have had a very bad week. The Dow alone dropped 1,000 points in 3 days. NASDAQ down what, 600 points? In THREE DAYS. This is getting close to the panic level of March last year, when we had limit down days, multiple times in one case.

I am very happy for all those retail call option buyers who are making money hand over fist. Too bad they are dragging down all the other retail guys who just hold funds. They are killing 401Ks. They are robbing from the rich to feed their own wallets, and not give a shit about the rest of the poor. They are their own start-up hedge funds.

How ironiucal.
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It's not just the hedge funds - they have the money to deal with this, although painful for them, sure. This has spiraled a massive outbreak of greed, FOMO and YOLO primarily on the retail side. People that don't understand risk, put the entire systems integrity in jeopardy here.
 
OptionsKyd said:
It's not just the hedge funds - they have the money to deal with this...
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Yeah, the only way they have the money to deal with this is by liquidating their longs to make up for the massive losses on their shorts! It's a down down down situation.

The only possible glimmer of hope is how RH is now restricting some of those high-flying stocks to 1 share per trade for new positions. Unfortunately, that doesn't prevent folks from EU and Asia to continue the frenzy.
 
SteveM said:
You could be right.

Or, the events of last week spark a speculative wildfire among retail traders the likes of which we haven't seen since 1999, and stocks start going parabolically higher as greed takes over.

We will have to see.
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I’m going with greed and parabolic. It’s in the air all across the board.
 
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