Very simply we’re seeing more resilience from the bulls than they should be showing due to the reality of the situation, which means we’re nicely set up for a pretty serious flush this week.
I have to say there are big risks on either side for LULU, LNKD, and YELP because they’re stubbornly holding up/holding out and anything could set them off to a big move in either direction. I’m short on all of them because a black dog talks to me at night and tells me to kill, but a less rash investor (Ie, me after lunch) might consider placing some strangles here. AAPL is also holding, but really, who fucking knows anything at this point.
ATVI finally got some love with 6.5 million copies sold at 50 bucks a pop minus 1.5 million for WoW subscribers who got it free plus item trading for real money with a 15% cut plus Blizzard’s legendary legacy support services mean nothing but good things, though obviously the overall trend is still down massively and I can’t really think of a stock trading above book value that doesn’t deserve a 10% haircut. No matter how many times it’s explained, it’s really simple: bad news is never priced in adequately because humans systematically underestimate the likelihood and severity of rare events.
I put in my orders and I’m holding some troops in reserve, but the only sane strategy at this point is to step back for an hour or two then return. I also pulled out all stops because I believe blowing up builds character. If the S&P goes below 1300 today expect me to be the most annoying man who has ever lived.
