The longer this market stays up, the more impatient the weakling bears become. The longer this consolidation gets, the bigger the potential breakout becomes.
I think it’s fair to say the heart of the margin call fueled liquidation is over. Whoever needed to raise funds did so already. Things are starting to slow down and I am seeing certain stocks behave again. We’re not out of the woods yet, but I put zero credence into the opinions of people who’ve never done this before and who’ve been screaming “bear market” for the better half of 5 years. I’ve been at this since the mid 90′s and have escaped every trecherous market on top.
You have no reason to not believe that everything will work itself out again, especially since rates are low, the economy is performing and the PE for the S&P is just 15.
Take all of your pessimistic cries for help and shove off.
So far my WDAY for YELP swap is going according to plan. I am betting on a better than expected result out of FB, which will then boost my YELP holdings to break-even.
I am down just 8% in the position now and up 0.45% for the day, so far.