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 .
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 , 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 , 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.