I'm a system trader, and have traded on both the long and short side, with the short side producing nice gains and the long side net losing over the last 60 days.
I think you would agree that the LARGER market segment, the NYSE, has NOT crashed, and is off a mere 5% from its all time high 70 days ago. People that try to INVEST in the speculative Nasdaq stocks got what they deserve if they got mauled.
We probably both agree that this Titantic of a market has already hit the iceberg, and is rapidly taking on water. The bow is beginning to fracture and split as the leading part of the ship (Nasdaq) is submerged under water. In a game where you're richly rewarded for shorting this Titantic at its highest level, you and others here maintain that the highest point has already been seen, and we can only sink from here, and advise to plunge into the abyss with puts while there's still value left to sale.
I have sided with those who disagree with that theory, and await this Titantic poking its ass-end high up in the air... Yes, vertical, before it plunges into the abyss. And at that vertical point, the ass end will be at a higher elevation than the ship ever sported before its fatal meeting with the iceberg. At that moment, I will join you as a permabear... But not until. That also assumes you can hold your permabear resolve through such a stirring rally, and not be overwhelmed by the coming blitzkrieg of bullish propaganda. |
