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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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From: Silver Super Bull8/7/2007 12:23:06 PM
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IMHO caution may be warranted here on the short side afa the general stock market is concerned, especially if VIX collapses (and it looks like that may well happen). Needless to say there is probably a huge amount of shares sold short right now, and a collapsing VIX and concomitant derivatives activity could well cause a substantial short-covering rally.

I'm not saying that it should happen fundamentally (I am supremely bearish on the stock market right now IT and LT)...just that a ST short-covering rally could happen...

SPX at 1472.49 and VIX at 22.42...
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