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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (170026)3/30/2021 7:29:40 PM
From: sense  Respond to of 220496
 
“You have to wonder who else is out there with one of these invisible fortunes,” said Novogratz. “The psychology of all that leverage with no risk management, it’s almost nihilism.”

An even more interesting question, perhaps, now that the sharks smell that there's blood in the water... that a clever short selling might make bank on with a well timed trade of proper proportion...

Given what is essentially a naked derivative product that's a direct price future...it's a "long squeeze"... that works when the price starts falling through a threshold forcing the liquidation of the long leveraged contracts... and that forcing other selling in other positions to cover the losses in the difference in the contracts for difference ?

Really all that says is that there's still a shortcut to amplifying long side market risks with 10:1 leverage...
and when prices in "more than one" set of stocks that has positions like that begin to fall... you could see an even bigger accelerated selling event as we just did just in those few issues.