Here is why the market dropped=READ

Discussion in 'Trading' started by hitman4gk, Feb 27, 2007.

  1. Yeah, long gamma at 20 vix, awesome advice.
     
    #11     Feb 27, 2007
  2. i had a funny feeling yesterday after the mkt failed to get anything going after those 2 massive LBO's
     
    #12     Feb 27, 2007
  3. I did too... when the largest LBO fails to keep the market up theres some people that really want to sell. Oh well, coulda woulda shoulda...
     
    #13     Feb 27, 2007
  4. #14     Feb 27, 2007
  5. ammo

    ammo

    was strange yesterday with 130 pt drop in djta that we didn't sell off yesterday,todays lo in dow and spu touched support line of feb 04 and may 06 his
     
    #15     Feb 27, 2007
  6. Speaking of gamma, there was chatter on some desks a hedge fund got stopped out of a huuuge short gamma trade and had to liquidate a couple hundred billion in positions. Not the reason for the selloff but maybe exacerbated the depth.

    This whole market has been built on illusionary liquidity and the subsequent private equity bids that have legitimized these valuations. Selling premiums, exploiting the carry trade works until it doesn't. The global economy is in serious trouble if the group think that got us here decides to reverse itself.
     
    #16     Feb 27, 2007
  7. MaxLD

    MaxLD

    Not a very good Market Timing model in my estimation. I wouldn't bet on the "Wavers" getting it right this time either. :D
     
    #17     Feb 27, 2007