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Strategies & Market Trends : TOO BULL FOR SCHOOL!

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From: MoneyFriend_2.07/1/2010 9:23:52 PM
   of 880
 
Most people fail to understand, that when you enter this sort of bonus round sell off, the silver lining is shorts will be forced to cover even lower than the day before. That's f.ing rocket fuel, and that's what makes every one of these dips a walk in the park for me. In a bull market, the reversals that come after these controlled steady sell offs are epic.

The market fell off a cliff on the 5/6 flash crash, all the technical damage was done there, since then all sell offs have been controlled shakeouts to pick up retail loose change. Business as usual. The VIX doesn't deserve to be this high in this tape, and it got smacked today, on a down day, because it was overdue. Watch the spread between historical vol and IV, gives very reliable tells.
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