Wes, you forget to tell me again today how wrong I was for going long the VXX. You haven't seen anything yet, Wes. Don't worry, when I walk by your carboard box under the over-pass I will flip you some dimes....
Are you sure that nothing else will be announced to replace operation twist? Do you really think that Ben Bernanki is going to just let the bottom fall out of the stockmarket and tailspin back down to under 10,000?
I don't think so, and neither should you. Unless you think Ben B's goal is to fail as fed chairman, and Obama has no interest in getting reelcted.
Be practical people, do you believe that nothing will be done by fed, and market will tank before any further action taken?
That is why I trade the way I do. You would have to be nuts to believe the fed will wait before another freefall in the market before taking more action.
Deflation is once again the risk, not inflation. China is slowing and Euro is in deep recession. Our own recovery is at a turtles pace. The fed will take action, and soon!
Maybe you could remind your friend that some bozos are still living on hopium.
The big drop will happen around 6/12 when twist expires...and nothing new is announced to replace it.
It's not yet "priced in" and the market will most definitely throw a tantrum when it's official.
Most of the volatility in my opinion is just about baked in. I can not see this hitting $20 let alone $30 hehe.
The unforseen risk being calculated now is if other large players are leverage on bad bets that are getting worse. Gold, Silver, Oil, most commodities.
Exactly what sent oil from $150 to $30 last time. Slowly getting baked in the cake as we speak.
I got the blue screen of death today on Windows! Trading system has worked flawlessley for 7 year and poof! Hehehe Getting fixed now.
When I come back this should be around $15.
I am happy for the longs though. Make sure you cash out because this is going to end quick for you. Count on that.
Wes--You must plan on being away for quite some time to be predicting $15. For the moment at least, it looks like a different VXX we are dealing with. In the past, a market with little volatility for the day and a DOW up 50 or so would have crashed VXX. Not so today. In fact, VXX went positive while DOW was still significantly up for the day. Looks to me like in the short term we are heading higher, but I'm keeping my short through whatever we may see, as I have some puts in QLD in case the market continues lower.
Get a MAC. All my Windows problems went away when I switched. Besides, I need AAPL to go higher.