Yes they are. They would much rather see steady 5 to 20% returns pa than 100% pa, volatility scares them.
The S&P 500 has topped at 2430 on 6/1/17
- Thread starter volente_00
- Start date
Yes they are. They would much rather see steady 5 to 20% returns pa than 100% pa, volatility scares them.
I have 2383-88 touch in play from 2438-42
boy you love taking punishment! I can see technical reasons why people would want to short around 2438-42 but you are going to get run over unless there is some sort of geopolitical breaking news against the flow. The savvy players know where and why people are shorting, this is a classic trap. I was tracking the retail short saturation on that last move down and Dow shorts increased from 81% to 85% in the last couple days, a very blatant sucker punch is on the way. anyways it takes many traders to make a market so GL.
If there are no stops, he will surely win. Because this market will go down eventually. The truth.
We bounced from the daily BB (always a good place to take gains if short). I thought we might go 5 pts lower, but no.
There is nothing wrong with adding to losers as long as there is a limit to it. Specially in slow choppy markets where you would get stopped out all the time, averaging down is a winning strategy...
There is nothing wrong with adding to losers as long as there is a limit to it. Specially in slow choppy markets where you would get stopped out all the time, averaging down is a winning strategy...
A 2383-88 target is a very cautious bullish macro self-admission - especially if you're going to construct multiple threads emphatically proclaiming "The Top" !
That 2383 level is simply the lower band of the bull market channel trend that has been in place since 2009. 2383 tells me that you are scared bullish - which is entirely understandable given your predicament for the past five months and two threads (and counting).
Let me break this down for you guys.
YIELD !
Asset managers have tens of trillions of dollars to put to work.
Is there yield in the current sovereign debt environment ? No.
Is there yield in the current mortgage or corporate debt environment ? Not nearly enough.
Is there yield in commodities ? On the whole not really. (Especially since the emergence of North America as the dominant world energy producing spoiler for hydrocarbons).
Funds are calculating that even at these (historically) elevated share prices that equity yields are their very best investing option right now. And they are chasing them. This isn't the 1990's tech bubble, where company balance sheets and earnings never reflected honest share valuation. The vast majority of these companies in the 2017 major market indices have solid and growing revenue streams - especially in the current US political climate. There might be a case made for a few outliers such as Tesla, and yes, the yields are shrinking in the face of elevating share prices. But again, what other tangible option does an asset manager have ? Powerball tickets ? Bitcoin ? Again, these asset managers tend to be on the conservative side - they're in this to survive and collect fees.
YIELD !
Asset managers have tens of trillions of dollars to put to work.
Is there yield in the current sovereign debt environment ? No.
Is there yield in the current mortgage or corporate debt environment ? Not nearly enough.
Is there yield in commodities ? On the whole not really. (Especially since the emergence of North America as the dominant world energy producing spoiler for hydrocarbons).
Funds are calculating that even at these (historically) elevated share prices that equity yields are their very best investing option right now. And they are chasing them. This isn't the 1990's tech bubble, where company balance sheets and earnings never reflected honest share valuation. The vast majority of these companies in the 2017 major market indices have solid and growing revenue streams - especially in the current US political climate. There might be a case made for a few outliers such as Tesla, and yes, the yields are shrinking in the face of elevating share prices. But again, what other tangible option does an asset manager have ? Powerball tickets ? Bitcoin ? Again, these asset managers tend to be on the conservative side - they're in this to survive and collect fees.
incorrect. Every trader has a 'stop' whether they actually have an active order in the market or not. This could be in the form of a margin call, auto liquidation by broker or a tap on the shoulder from the risk manager from an institutional perspective. The idea that you will definitely win if you have no actual stop in the market is a false. I have seen plenty of trading desks vacated when the trader had no stop in the market.
Shorted 2439
Stop 2450
Objectives are
2420
2399
2389
Stop 2450
Objectives are
2420
2399
2389
translation - I went offside and decided to add to a loser by shorting some more delta and assuming more risk.