Financial topics

[John]

Today was a good day for me to stay out of the market.

I looked around noon, near the high with the S&P up 44, and thought all that brainpower got it right. Pokemon Go analog, here we come.

At the end of the day with most of those 44 points lost, I thought who would have predicted that, looks terrible.

I don't believe I would have sold that high.

Hmmmmmm. So if you'd gone short at noon, and got out at end of day,
you would have made a ton of money. Tsk, tsk.

[Higgenbotham]

Today was a good day for me to stay out of the market.

I looked around noon, near the high with the S&P up 44, and thought all that brainpower got it right. Pokemon Go analog, here we come.

At the end of the day with most of those 44 points lost, I thought who would have predicted that, looks terrible.

I don't believe I would have sold that high.

Hmmmmmm. So if you'd gone short at noon, and got out at end of day,
you would have made a ton of money. Tsk, tsk.

Think if you'd gone long the triple inverse Nasdaq ETF on March 6, 2009.

This is what aeden calls the sheep shear pens.

[Higgenbotham]

Higgy I agree on the etf short sheep pens for now are shear zones.

[Higgenbotham]

Typical resting place of trader who is levered up short in a bull market. It will be one of the small stones because that's all the family could afford. However, no suicide kit will be needed.

[Higgenbotham]

Next come the levered longs.

1929 Wall Street suicide after the stock market crash on October 1929 (Black Thursday).

[John]

Yikes. What a way to go.

[Higgenbotham]

Is there a lot of leverage in the stock market today?

The $650 billion of margin debt overhanging the markets is a concern.

Just the tip of the iceberg.

[John]

Is there a lot of leverage in the stock market today?

The $650 billion of margin debt overhanging the markets is a concern.

Just the tip of the iceberg.

I'm not sure why, but I thought it was in the tens of trillions.

[Higgenbotham]

That's just for stock shares in margined brokerage accounts.

Unintended consequences are brought up a lot in different situations. There are a lot of margin accounts just because that is the best way to avoid getting hit with an SEC violation. But then the ability to lever up long is sitting there with the mouse on the desk and you're one mouse click away...

[John]

What's the SEC violation?