Posted by DigiNomad on 4th of Apr 2024 at 06:08 pm
Sorry to hear that. I gave up on rolling mine out and up a
couple of months ago and let them invert. One thing I was doing
before that I will never do again, is adding contracts on the roll
thinking that the market can't possibly roll snake eyes a 9th or
10th time in a row. Yes, it can. Naked long out of the money
lotto calls were my saving grace (basically like puts protect from
crashing down, they protected me as the market crashed up). I never
expected those calls to be 250 points in the money, but I wildly
underestimated the power of deficit spending to inflate an
economy...even if the economy is shut down. That moment in time in
2020 when the market flew higher despite everything being shut down
almost worldwide should have taught me the lesson completely...but
I've got it locked down now. The crash risk in this environment is
to the upside, not the downside. The Gov has figured out the
formula for levitating markets no matter what and has shown that
they have shown they have no fear of using that power.
I suspect they have also lost control at this point. They can
protect the downside, but not prevent the market from melting up
because they have crossed a red line on the fiscal side. It's
almost unfixable. If they pull back spending, the market will crash
like it's never crashed before...and the debt will still rise
because of debt service. We're in the spiral now and there is no
easy way out...if there's a way out at all (the way out is to let
it crash...but I don't think our leaders see that as a viable
option)
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Sorry to hear that. I
Me yesterday morning: Man, do I have too many shorts ...
Posted by DigiNomad on 4th of Apr 2024 at 06:08 pm
Sorry to hear that. I gave up on rolling mine out and up a couple of months ago and let them invert. One thing I was doing before that I will never do again, is adding contracts on the roll thinking that the market can't possibly roll snake eyes a 9th or 10th time in a row. Yes, it can. Naked long out of the money lotto calls were my saving grace (basically like puts protect from crashing down, they protected me as the market crashed up). I never expected those calls to be 250 points in the money, but I wildly underestimated the power of deficit spending to inflate an economy...even if the economy is shut down. That moment in time in 2020 when the market flew higher despite everything being shut down almost worldwide should have taught me the lesson completely...but I've got it locked down now. The crash risk in this environment is to the upside, not the downside. The Gov has figured out the formula for levitating markets no matter what and has shown that they have shown they have no fear of using that power.
I suspect they have also lost control at this point. They can protect the downside, but not prevent the market from melting up because they have crossed a red line on the fiscal side. It's almost unfixable. If they pull back spending, the market will crash like it's never crashed before...and the debt will still rise because of debt service. We're in the spiral now and there is no easy way out...if there's a way out at all (the way out is to let it crash...but I don't think our leaders see that as a viable option)