DEcho

Short Covering Helps Boost Stocks

Great article and good comments. It was about time Bespoke Investments got some credits given all the bashing lately. :-) The connection to short covering was well placed.

Personally I don't think this will change the fundamentals (besides financials book-keeping one quarter), except possibly to the downside. It increases the downside risk to the US economy in my opinion. As this crisis evolves, fundamentals will ultimately be the clue for the future, and I sadly don't feel that this move will change that. It smells like a desperate last attempt, even though it's not time for it.

Anyways, good article. Keep up the good work. I use this opportunity to roll forward covered calls on new positions, and are ready to go short around the trendline mentioned.

Trading Put Options With Buffett

Must say I loved this article. With the historical upwards trend of equities, and generally higher IVs of puts vs calls, this strategy makes a lot of sense. Especially now with the VIX approaching a five year high, and the fact that a retail investor can roll forward infinitely. I guess that the longer the current downturns continue, the more attractive this strategy becomes.. The downside besides book-keeping, is ofcourse that on this time horizont, one would have to consider the statistical outliers, like wars and the likes..

Anyways, great work! thanks

Interpret a Stagnant VIX As You Will

History is history, it was a time to buy options.

Interpret a Stagnant VIX As You Will

With the big players overweight in cash (ref: recent survey among European fund managers), and the bagholders feeling it's already too late to get out, I think we have a high level of apathy for those still active in the market..
So what comes after apathy ? Two possibilities: Apathy turning into fear when reality sinks for latter group, giving another leg down. Or cash coming into market again...

This is just me speculating ofcourse, any feedback most welcome..

Two Day Declines: No Sweat Off This Bull's Back

Agreed about the quality of this site. I especially like Bespoke' and David Fry's articles.

As for market manipulation, your proposal would seem very risky in my eyes. I'm only a retail investor, so I wouldn't know the inner workings of the investment houses, but dumping your holdings in the hope of other participants will be doing the same, on the basis that there would be some unspoken agreement to dump prices seems kind of far fetched. There are after all fundamental reasons for the latest correction; bond yields and storm in middle-east...

Two Day Declines: No Sweat Off This Bull's Back

Seems like today might be another decline day. Is so, it would be very interresting to see a follow up article on three day declines..