No, not a bloodbath like everyone thinks but who knows. These banks will be whipsawed around all week I think. Yeah, I am long an index fund but not a huge play. Not panicing. Dumb move but I usually do best selling rallies and buying dips and not chasing the momentum.
Practically a push on that play. Unloaded the position unscathed to add to another position. The morning futures were scary though. I just waited till the index bounced and got out. Need to keep cash on the sidelines for a better opportunity. Index's are in no mans land and I have no conviction in either direction currently. Would prefer to see a "quadruple top" near term and then sell off again.
I can sort of see why Mondays are crash days and how this Monday may be a really good circuit breaker day. Here is how it works. You a week like we have, market down huge for a few days. Then Thursday, Fridays are just back and forth days with Friday ending weak. People go home and sit around the campfire listening to a relentless media barrage of how bad things are and they just say fuck this I am selling Monday morning. John
I'm not sure if a crash happens due to the selling of people that sit around the campfire listening to the media. I thought it was many instutional sellers coming at once.
I think it was the instutional sellers that made this week bad. Then you have the cooling off then the retail people kick in and if you can take out this weeks low then you could get some downside again from instutionals. I am just throwing it out here. John
Its kind of funny to read the commentary from 5 months ago. Its like the same discussion could have taken place last week! But for real this time!!