Will the next leg down in Financials kill more Longs than The Spanish Flu in 1918? Just wondering.... We have just completed the insane +100% move in XLF in 2 months. What could be as insane as that? -50% move down over the previous two months, perhaps?
No way. We have an entire government in the full flower of its coercive power and monopoly on violent force to ensure that prices only go up. They'll publicly execute shorts and ban selling altogether if they have to.
i am guessing that because plenty of the stress test has been leaked out, it is largely a non-event. are any surprises even possible when it is released on Thur?
As long as the majority here (which is a proxy for the retail investors out there) think it will fall, it'll keep going up. Advances like this are fed by those who keep shorting it on the way up, thinking it's gotta top soon, and then they have to keep buying back to cover at ever higher prices.