I’m having way too much fun this morning, which accounts for my somewhat belated post. There literally seem to be juicy setups crawling out of the woodwork and I just kept adding new ones while reducing exposure on others in order to reduce correlation risk. So without further ado let’s jump right in:
The famous order “Don’t fire until you see the whites of their eyes” is a battle cry which became known in stories about the battle at Bunker Hill which was fought on June 17, 1775, during the Siege of Boston in the early stages of the American Revolutionary War.
The fear is literally oozing out of my charts right now. Hedge fund redemptions are on the increase, various funds are closing, banks are allegedly buying puts on other banks. Retail has been heading to the exits a long time ago, even here in the comment section it’s been suspiciously quiet in the past few weeks.
And who could blame you guys? After all we’ve got Mr. VIX slowly creeping higher and momo divergences are popping up everywhere. The Dollar is taking it up the rear and the Euro is back with a vengeance squeezing the shorts.
Here for example is the NYA50/NYA200 ratio. Boy, that is one scary chart!
VXV:VIX ratio – [...]
A few years back I wrote a post  in which I profiled one of the main deadly sins of retail trader ignominy – the ubiquitous and often almost fanatic anticipation of mean reversion. I am not going to regurgitate my point; if you are a culprit (and you know you are) then I strongly recommend you read my old post and perhaps also one of my more recent ones . If you’re a noob here then you may also want to point your browser toward our all time favorites page . The holidays are nigh and tis the season to debug your brain and start the new year fresh.
However book knowledge is one thing – seeing things play out in reality is quite another. Let me [...]