claydoctor

SPX500 777, 666, now 555 ????

Short
AMEX:SPY   SPDR S&P 500 ETF TRUST
6
It is the fool that says THIS CANNOT HAPPEN. The wise man said, a fool and his money are soon parted. Imagine the volume and velocity of the EXODUS if this even thinks of happening. Imagine the expression when your wallet is picked, and the moment you reach for it and it is gone. Numbers, what do they mean? Are they a coincidence, or do they represent who we are? Six (6) times the markets tried to correct the bull. 6 is the number of man, and 666 is the closest you can get to 7 without being 7. Why did we end on 666 the last time? Why not 641, or any other number. It took God 6 days to create the universe. On the 7th day God rested.

The 2nd correction took 20% less time than the first one. We did not have as much computer trading then. Auto trades have grown exponentually since the last correction. If/When this happens, they will hit the STOP TRADING protection switch. You won't be able to get your sell order in, much less executed. Note the spike down in number 5 this time. Note the angle of the volume.

So why would I post a chart like this? Not for my sake, but for yours. The point is, if you are not hedged with profits from this bull run, do it now. It is house money anyway. Many of you are, as am I. It is just smart trading. But here's a thought, can we all hedge at the same time? Mmmm, never thought of they, eh? What will that do to the payout systems. Will we get I O U's? Maybe only the first out will get paid? What will that thought do to the trigger fingers on the sell buttons? Are your algorythm sell orders in place? Anything can happen.

Here's a thought, i.e.,... lets suppose this Yemen thing expands, and someone bombs a Saudi oil field or something like that, and oil supply does stop flowing big time quickly FOR WHATEVER REASON. Keep in mind this is an oil war, and lots of people with a lot of money in oil have lost a lot of money and they are not very happy about it. USA Inflation, minus oil, is already at 2% (The Fed's key number) . If oil spikes overnight to say 80, and it could, and it doubles or triples inflation, what does the FED do then? THEY RAISE RATES OF COURSE, AND POSSIBLY AT AN EMERGENCY MEETING! Markets will really not like that panic decision. Wages will pop, employment may actually rise, when the US fracking fields start up again. Dollar collapses. Dry Ships (DRYS) goes 10X in a week. etc., etc.

I am NOT SAYING THIS WILL HAPPEN BY ANY MEANS, just saying something like this could, with all the tensions building. Hedging just makes sense. Do your own homework. Careful trading all. As always, IMO.

All comments welcome.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.