I highly doubt it could have been 1 trader pressing b instead of m lol...
for 1 trader to bring almost every market to its knees and the worst dow drop since 87 is not possible.. if it is it shows really just how we can be pushed off the edge off a cliff by these financials and how easily they could profit from some an event.. i for one believe that these instos are too big and should be broken up. I recon if they slip up it could make the GFC look like a walk in the park. Anyone seen footage of whats happening in greece? firebombs being thrown at banks. People being set on fire. Its chaos!
hardly a laughing matter when you consider the complex interrelatedness of europe. If Greece goes down the french have such a large exposure to them that their banking sector could hardly handle it.. and then the dominoes begin to fall. could greece be the tip of the ice berg??
anyways i find its a bit silly to get overly bearish when all the noise around you is saying world is going to end. its best not to think too much when your trading imo and just play your system. Leave the thinking for when markets are still and emotions are at bay.
regardless i think its best not to jump in and buy just because its fallen so much. You look at 87 and at the time i think that was the biggest drop so far. Now were in 2010 and each economy is more dependant than ever before.. so i think the potential to take a bigger hit is there. Especially with all the algos they got these days that can just switch to the downside.
i for one will not be going long until i see some kind of bottom. I dont care if i dont get the exact bottom because its better to not make anything than to loose!
a wise man once said "its not a good idea to stand in front of trains picking up penny's"
just goes to show how quickly sentiment can change.. 3 weeks ago I was hearing calls on tv once the 5000 level was broken -> yup next stop 5200-5400.
anyways good calls from volt and others yesterday. I thought i was good cos my 4515 target was hit before i went to bed. Only to wake up and see a big dirty red candle..
wheres selmax? probably already on a flight to the bahamas haha
hope ya all did well lastnight.
p.s. still have some shorts and system says to short on a reasonable break of 4400. So i guess if this continues down i would look at the 3880 area. Trailing stops should takecare of the rest if not.
p.ps if you want to read a great post risk management post check out SPX thread. Tadewi has outlined his experience lastnight. Very insightful.
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