VoltI think the point of maximum financial risk cycle chart that...

Volt

I think the point of maximum financial risk cycle chart that Peter P posted and your comments about shorts needing to beware of euphoria are timely.

Let me tell you though, I thought it was the ASX bulls who were rampant and feeling like they were the masters of the universe on Friday, especially in the afternoon. This sentiment gave me some solace and encouraged me to pull the trigger and take the short at the close. We saw "irrational exuberance" at its' best on Friday - I think at the time you told FS you saw "panic buying."

Only time will tell what happens from here but you are right in seeing both opportunity and time for self-analysis when market emotions run to their extremes. If there was an instant VIX for the XJO it would have been at a record low on Friday afternoon (and wouldn't farsight cream his jeans at a local intra-day VIX indicator!!!)

Regards

- HBG

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Trade the market you see - not the market you hope for!