My feeling is this, the market can trade higher here, but there is always a risk of another Lehman Brothers overseas. Now that they are banning short selling on certain financial instruments overseas, it seems they are using a page from our playbook, a page right before shit hit the fan.
Can you imagine a Lehman Brothers event overseas? What if news hit the tape and we sliced right through the 200 day moving average in the S&P 500 (a level EVERYONE is watching) ?
Can you imagine the ‘stops’ that will be taken out once the 200 day is breached? You think the fat finger trade was scary a few weeks ago? Wait ’till they SHUT DOWN the market due to more egregious computer algorithm trades.
Then, wait ’till they ring the opening bell the following trading session. THERE WILL BE BLOOD.
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Hey don’t create panic please…. I still have tons of Solars overnight…
There will be no Lehman II.
Repeat after me; There will be no Lehman II.
But reallly. There will be no Lehman II.
Honestly, no Lehman II
I hope you are right Scott. For the sake of our country.
For the sake of the world, good lord.
Don’t buy the bounce, sell it
straight up
the ibc bloggers are all doing a great job addressing risk management for your readers– not just looking out for yourselves– very cool
Make sure you have your trigger finger on your favorite inverse ETF at all times.
I like TZA, small caps will be DESTROYED in the event we see the great crash of 2010. Disclaimer: long TZA
I followed you re TZA and fly re TLT, VXX and also have some SDS (as I made a pact to never buy FAZ again lol.) Basically daily balancing to stay neutral w over 80% in cash– and longs are essentially good div stocks like VZ picked up when PPT score was super low. Spending time researching stocks to buy once PPT score low enough and Fly gives the all clear. Which may not be til later this summer, which is fine. I think we will have at least a couple of big/bad/major drop days in the coming weeks but it’s no longer a scary thing to me thanks to all you guys have taught me/are teaching me.
With all that said, I still think we can bounce here.
Just be alert.
Nikkei doing some major testing…under 10k and it’s full on panda-monium
It opened at 9823. Down below 9800 now. F’ed up is not even close to describing the situation we are in.