Look at the tell signs on both the NASDAQ/NYSE. What is happening is stagnation in the major indices. This happens when the large derivative players are shifting their positions. They are now moving money and are going to bet against both markets. In the past this is when large corrections take place (over 10 percent). The large derivative players are the ones that run the indices. For example look at Warren Buffet; he is a heavy derivative player that has, over the last five years, substantially decreased his position in stocks and gone the derivative route. Smart, rich player. Derivative are an easy way to hide money.......so large losses can be covered up. The SEC does not understand this and they cannot track this. The result is no regulation. It will only take one major, dishonest derivative player to send our financial systems into ruin.
Gerry yer stmnt is the equiv'lnt of puke. You make no snese, have no basis. First let me say YES, derivitives (i.e. OPTIONS) really aren't regulated. That said, OPTIONS are looked at by the SEC, but really only when HUGE Trades are made and 1-2days later the option make someone 10fold wealthy, but YES other than that they go unregulated by the SEC. So, what you are saying I actually understand but to someone coming here to read, they will leave dumber than when they showed up. Sure Buffet hedges his longs positions. And then more times than not he doesn't, when he announces his positions, that hedges him as buyers will swoon in and buy. As far as Buffet buying options to cut long position costs or short positions, I'm not convinced he deos this, unlike the Icahn's of the world. Buffet is not that kind of investor. He is a 5-20yr investor. So I give you an over thumbs down, for now unless you can show details for your arguement. Go long MU!