by John Galt
February 8, 2018 20:00 ET
The story from The Financial Times tonight sums it up:
Yeah, there is still a whole lot of morons still out there. I mean with such sterling plays like XIV in the last 90 days, what could go wrong?
The article from FT sums it up:
Some investors are creeping back to the “short vol” trade that wiped out several financial instruments earlier this week, betting that stock market volatility will fall once again.
More than $200m has flowed into an exchange-traded fund that narrowly survived the week’s upheaval.
In other words, the “masses” who I watched on financial TV today and listened to on financial radio shows all thought that BTFD was still the play. In the intermediate, if the SVXY and other short-volatility instruments survive, it might be a good play. Yet the truth is that there has been neither capitulation volume nor price breaks to indicate that the masses of stupidity have surrendered.
The market could rally 1,000 points tomorrow or drop another 1,000, regardless, remember this week which I will summarize later on this weekend. And while watching CNBSFNCBBG, remember the following courtesy of the great market analyst, Ron White:
Stupid is forever boys and girls, market liquidity isn’t.