Which Area(s) of Market Will Fall First, The Most, and How to Play Them?

riskfreetrading · May 17, 2008

I think that anyone who is long the market starting at close of Thursday (May 15) is looking for trouble. I am playing the top hypothesis (but of course staying on guard just in case). My questions are:

1. Which area(s) of the market you think will fall first?
2. Which area(s) of the market will fall the most?
3. How to play the above (ETFs, options, etc) for maximum profit and minimum risk of loss?

Bears, show your teeth!

erlewine · May 17, 2008

1. Which area(s) of the market you think will fall first?
2. Which area(s) of the market will fall the most?
3. How to play the above (ETFs, options, etc) for maximum profit and minimum risk of loss?
[/B]

1. VIX
2. Put options
3. Short 'em

riskfreetrading · May 17, 2008

Quote from erlewine:

1. VIX
2. Put options
3. Short 'em

A proud bull with "strong horns"

PS: are your put options ITM, ATM or OTM?

erlewine · May 17, 2008

Quote from riskfreetrading:

A proud bull with "strong horns"

PS: are your put options ITM, ATM or OTM?

I'm being facetious and actually agree with you, but know better than to call a top.

There will be plenty of chances to sell the crap out of this market after it breaks; if you're smart enough to catch the first 20 handles, hats off to you.

riskfreetrading · May 17, 2008

Quote from erlewine:

I'm being facetious and actually agree with you, but know better than to call a top.

There will be plenty of chances to sell the crap out of this market after it breaks; if you're smart enough to catch the first 20 handles, hats off to you.

Good advice!