Please pray for the stock market

[J-Roc]

Originally Posted by Praxeas

and if you know it's gonna go down you can buy short (or is it long?)...forget what it's called.

You can:

1)sell short a stock (or future); or

2) buy put stock options; or

3) sell naked call options

In any of these three scenarios, your goal is for the market to go down in order to make some profits

Originally Posted by Praxeas

OUCH

Ouch? something tells me you did not buy some puts or sell short in order to
take advantage of the markets plunge on Tuesday, otherwise you'd be saying "yummy"

[Praxeas]

Originally Posted by J-Roc

You can:

1)sell short a stock (or future); or

2) buy put stock options; or

3) sell naked call options

In any of these three scenarios, your goal is for the market to go down in order to make some profits






Ouch? something tells me you did not buy some puts or sell short in order to
take advantage of the markets plunge on Tuesday, otherwise you'd be saying "yummy"

I have a mutual fund...by the time the market dropped it was too late to sell off.

Ironically I do own some Qual Comm stocks and though it went down a little bit it is still holding stronger than it has over the past several months at just over
$40.

I just wish I had bought more when it was lower. Cramer said it would be a good stock, then he sort of took that back, but I bought it at around $34 and it was recently as high as $42 and it has had a dividend pay out.


BTW can you explain how selling short works...don't you barrow the stocks from a broker when you expect a drop in price?

[J-Roc]

Originally Posted by Praxeas

I have a mutual fund...by the time the market dropped it was too late to sell off.

Ironically I do own some Qual Comm stocks and though it went down a little bit it is still holding stronger than it has over the past several months at just over
$40.

I just wish I had bought more when it was lower. Cramer said it would be a good stock, then he sort of took that back, but I bought it at around $34 and it was recently as high as $42 and it has had a dividend pay out.


BTW can you explain how selling short works...don't you barrow the stocks from a broker when you expect a drop in price?

Sure I can explain, yes you are correct you are borrowing a stock that you do not own. To initiate the trade or to enter the trade you are selling an instrument (stock, future, currency, etc.) and your analysis is that you are going to sell it at a higher price in order to close out the trade or exit the trade by buying it back at a lower price.

It is the exact opposite of entering a trade by buying it in order to sell it later in the future at a higher price. (This is the basic idea that most people have of the financial markets...buying with the hope of selling later at a higher price). Selling short is the inverse of that process. In the stock market crash of 1929, more people became millionaires in that crash than one would imagine. Investors/traders are making cash on the ebb and flows of the market movements...they dont care which way the market goes..they just want it to move, to be volatile and that there is liquidity (meaning that there is a lot of trading going on in a particular instrument).

[Jekyll]

Stocks should shoot back up over the next couple of weeks...the market has been resilient and resistant to loss over the past few years...Shanghai has already recovered 4%...

[Jekyll]

Of course, we'll see

[J-Roc]

We have reached relative extreme levels, so if it is business as usual, I agree...In the eight instances in the past ten years following a breadth extreme such as we saw on Tuesday, the S&P formed at least a short-term low within three days. The US indices are off 5% from recent highs in less than five trading days...generally speaking, a 10% decline defines a bear market...so in 5-6 days, we're half way there.

Gear up, these next few days should see volatile movements!

[J-Roc]

Originally Posted by J-Roc

We have reached relative extreme levels, so if it is business as usual, I agree...In the eight instances in the past ten years following a breadth extreme such as we saw on Tuesday, the S&P formed at least a short-term low within three days. The US indices are off 5% from recent highs in less than five trading days...generally speaking, a 10% decline defines a bear market...so in 5-6 days, we're half way there.

Gear up, these next few days should see volatile movements!

With the market opening down once again today, the comment in red is still valid as to the market forming a short-term low and then off it goes to new highs...let's see if it is business as usual and that this down move is only a correction. Stay tuned....

[SDG]

J-Roc ... you're a hedonist.

[J-Roc]

Originally Posted by Daniel Alicea

J-Roc ... you're a hedonist.

And Dan, you're a pest...stop bothering everyone and bullying them around in this place. You Poker....

[J-Roc]

As of now, that markets have recovered all of this mornings flush down