The market is going to reverse tomorrow for sure. Want to know how I know this? I've not been buying anything for the last 50 or so S+P points until today. I finally caved and figured I'd buy about $10 grand worth and sit on it, moving up the stop as it goes. It'll be just my luck to see it reverse.
Why was "grandma" in equities if she was unable to accept and handle risk? Equities can and do move by a factor of two in short timespans -- it's happened many times in many places. You're sure "grandma" didn't get caught with her hand in the cookie jar in 2007/8? In equities when her life circumstances suggested she should have held T-bills?
Ummm, but it would be completely irresponsible for "grandma" to go into all T-Bills, and if she's sat on the equities for the past 40-50 years, why would she take the capital gains hit, just because the market has a propensity to go up or down 20-30%. Most 'grandmas' who have significant equities just live on the dividend income anyways, so they really are largely indifferent to the market price of the underlying stocks.
Ummm, then why was grandma shaken out at the low?... Maybe you and he are talking about different grandmas...
Good point, but even grandmas panic, or believe that everything is going to zero, because they lived during the great depression and might know of the Crash of 1929, or the 90% loss that ensued, where dividend income was not preserved. It is very possible that dividend income won't be preserved this time around either.
being a mod on ET must pay well; or maybe its the money Blowinsky pays you to promote his systems but I have no idea how you guys can afford to eat. futures down 63
Heh... Being a mod pays zippo. Fortunately I have a full time corporate job with a CPG company. Regardless, this 10 grand was just "Ok, fine!" money that I threw into a Scottrade account. I've got way more in my BoA account that is hurting in SDS, DUG, and EDZ. All of this is a cash trade, incidentally. I don't use margin unless in Forex. That's where I play a lot of money. $10k is just a hiccup.