futures look red already...im a little nervous about the possibility of an early spike but futures are starting to look a little more encouraging to the down side. Any time I see a run up of 900 points I think to myself...this is a short day trade opportunity...I'll be out ASAP though when I see support
The problem is your not the only "genious" who has thought of this. The market tends to screw level 1 thinkers. Most people look to the most recent things that have happened... such as the last 900 point run-up that ended up selling off. So the dumb money piles on short here. The problem is.. we aren't going lower and there is going to be a massive squeeze because of all the dumb money that piled on shitting their pants saying COVER COVER COVER. I think we go up bigger tomorrow... something like 1200 points. Then is a good time to short.
Really? The market is nothing but "dumb money". That's the whole reason it went up today. Look, 200 pts. today, 150 tomorrow, 100 after that, etc. is rational. 900 points in one day is far from rational. Put in another way - dumb money.