Friday, July 29, 2011

This market is as bipolar as a bachmann.

A lot of market players are wondering why the market hasn't tanked yet. The answer is simple.
Volume has dried to a trickle and the small players that are trying to make some money are on the short side. It doesn't take much of a brain to realize we are in dire straights.

We can't go down in one fell swoop when the market has told the world its supposed to go down in advance.
That's not how the big boys play, they need an unexpected black swan or a flash crash that catches most by surprise.
There is money to be made when the market moves down 150 points down and then climbs back 100 points in no time at all. unfortunately unless you are a high frequency trading bot i don't know how joe and jane retail can take advantage of the wild swings.

Take a look at the faz 50 call that expires today- the low of the day was 8 cents and the high was .77 cents. the catch?
you literally had only a few minutes to sell it for a profit before the markets reversed.

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