That was a 13% drop in 20 trading days. And Niederhoffer's liquidation by his clearning firm ( covering naked S&P puts ) was the dead-ass bottom.
what has to be considered, is whether this is a bull correction, or a bear start which is it? i honestly dont know - it could be either but i do remember the period of 2000-2001 people kept comparing it to this, and to that, from history what they couldnt comprehend, is that history was unfolding before their eyes doesnt mean that that's true now, this could be nothing more than a blip
hey jasonjm, thank you for sharing the information it is much appreciated. do you keep track of this stuff by hand or backtest it through software? id imagine it would be pretty difficult by hand
You need to try doing your OWN homework instead of merely listening to what "others" believe to be applicable. For example, the P/E of the S&P 500 currently is nowhere near where it was in 2000. http://www.comstockfunds.com/files/NLPP00000/026.pdf Furthermore, whether or not this leg down is merely a sharp correction in a bull market vs a long, pronounced Chinese water-torture bear market decline shouldn't be of any significance to your ability to "trade" given that you continue to adhere to smart "money management" principles. If you trade technically ( with sound money management principles ) it really doesn't matter whether this is a bull or bear market decline.
I once heard Cramer piss all over TA by snorting "Technical Anaylsis mumbo jumbo". From that day on I knew TA was a viable way to trade and for 6 years have made a living out of it.
Thank you Jason, for the nice observation. There is undoubtedly a lot of short interest to fuel a rip up, and provide a second opportunity to those missing the first to dump. There usually is a second opportunity, isn't there?
<img src="http://www.cboe.com/micro/vix/images/vix_sp500.gif" > <a href="http://www.cboe.com/micro/vix/images/vix_sp500.gif"> This is from CBOE... </a>