All of this started with Yellen’s stupid Fed meeting. She was like a vampire, sucking the confidence from the market, which led to a rout in high multiple stocks. Without free crack money, I suppose, multiple compression is in order.
As you see your positions careening lower, understand, they aren’t done. Take IFON as an example. None of this lollygagging should get in the way of them selling “IFON’s” in South America. However, Joe Schmuck from New Jersey owns 50,000 shares and is getting lit up in his SPLK right now. Therefore, he is gonna sell it, regardless of where the price is.
This is called “forced liquidation” for you punk rookies out there.
The margin clerks are just getting warmed up. The PPT has not flagged oversold and I am guessing we have another leg lower before we can stand on our own, like free men in a world bountiful with cocaine. A good option is to dollar cost in, buying in tiny increments as the market unravels. Even though I feel we trade lower, I might start nibbling at some of my death knells before the day is out.
NOTE: I sold out of MA.
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I’m thinking of buying puts against my positions. If you did would you buy front months or go a few months out. Sorry punk rookie here.
She looks like Danny Devito when he played Penguin in Batman Returns.
LOL!
Yellen knew exactly what she was doing, you’re looking at a woman who probably hasn’t made a mistake in the last 20yrs.