XLE at 76.38. Would today's buyers later regret buying at this price and higher?
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Weekly Poll: After Brief Excitement Will We Go Back to Boring?
- Thread starter shortie
- Start date
Quote from Maverick74:
TJ, let me help you out here. When a spread blows out and makes 15% in 2 days, you sell it. There is no reason to be in that spread now. When I said that spread was a good trade, it was before the Nikkei crashed. I of course had no idea the Nikkei would crash. My thought at the time was that the situation was bad over there but not dire. I felt going forward that spread would be a good way to express a point of view on volatility that Japan would be more volatile then our markets and that over time that spread would widen.
I agree with this part. Good analysis! Any other ways (even in hindsight) would have been good to play Japan?
SPY/12EWJ spread is at 1.02. I believe that those who short it would start taking their position off at this level-- they made a great trade fading the hype and the crowd.
Would they now reverse the burger?
Would they now reverse the burger?
Quote from S2007S:
I am waiting on EWJ, waiting for something below $9.00!
Could the Nikkei fall even further, yes it can, who knows maybe it can fall another 50% before it bottoms especially if there are more problems coming from those nuclear plants.
Are you regretting not getting on board when EWJ was at the 9.25 area? Now EWJ at 10.64. I have a feeling that smart money may be taking some profits. Would they also go short now that the crowd may be thinking that it is "safer'?
Is it not too risky if I were to short EWJ at current price and higher?
Quote from tradingjournals:
The spike was the top? It is now at 1.02? is the trade idea still valid? If yes where is the floor?
TJ, I told you that you sell on the spike. I would not be short the Nikkei after it crashed 20% in two days. There are much better products to spread against the spoos right now then the Nikkei.
XLE at 77.84. Why is it trading at this level? Would short-side smart money get involved?