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  1. #1
    Member
    Join Date
    Nov 2011
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    Coral Springs, Florida
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    10,793

    Flash Crash Part 2 Coming

    I was talking with my broker today about how crazy this market has gotten and we were discussing what event could cause it to drop. It seems to me that when the market seems to be moving in one direction and the Vip gets low and we have cheap money that some people place highly leveraged bets like buying the 3x leveraged VIx and stuff like that. Then something causes it to spike and they can’t exit and then the computers see the price movement and they go into whatever set programming they have and then we are down a bunch very quickly. So does anyone else think this lack of volatility and upward market are setting us up for another flash crash? I would t mind one since it would be a good buying opportunity but it seems like something is bound to give soon. I sold some cash secured put on Amazon and Boeing expiring 2/14 so maybe these will get assigned but who knows.

  2. Member
    Join Date
    Mar 2014
    Location
    Arkansas
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    6,932
    #2
    Yeah, I think there will be a pullback coming sometime. It's all moving too fast. The people that are going to be in trouble are the ones that are freaking out now and are super bullish, buying all of this expensive stuff without reason, really. There are plenty of acceptable buys now, but there are also that are too expensive IMO. There are certain companies that I would be watching closely and taking profits on now if I owned a decent amount of shares in them.

  3. Member
    Join Date
    Jun 2006
    Location
    Wisconsin
    Posts
    5,105
    #3
    If anyone wants to know when to get out, just give me a shout. I got out November 26, 2018. LOL

  4. Member
    Join Date
    Mar 2014
    Location
    Arkansas
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    6,932
    #4
    Quote Originally Posted by Bassin08 View Post
    If anyone wants to know when to get out, just give me a shout. I got out November 26, 2018. LOL

  5. Member
    Join Date
    Jan 2020
    Location
    Loudon, TN
    Posts
    345
    #5
    I reviewed my portfolio at the end of 2018 and really started sweating. Things were down hard at end '18. People seem to forget that when looking at 2019 returns in the 20-30% range. Sometimes you've got to stick it out through the lows to get the high returns. But it would be tough to go through 2008 again.

  6. Member
    Join Date
    Jun 2006
    Location
    Wisconsin
    Posts
    5,105
    #6
    I keep thinking about the December drop and the 2019 gains and wondering where I would be now had I not gotten out. It was all about my age. I will not get back in anymore, especially at these levels.

  7. Member Jafaar's Avatar
    Join Date
    Jun 2016
    Location
    Ontario
    Posts
    179
    #7
    I just want it to come already and hope we don't go into a depression.

  8. Member
    Join Date
    Aug 2017
    Location
    Kalamazoo, MI
    Posts
    368
    #8
    I just reduced my exposure slightly by moving half of my portfolio at Vanguard to a equites/bond ratio to 50-50. I also have another account that is sitting 30% in cash and the rest in mid cap and large cap stocks. I am curious with the Fed goosing the system with extra printed money that they are creating a problem down the road.