Ace Ventura, Pit Detective ~ The Risk Averse Alert

Monday, June 22, 2009

Ace Ventura, Pit Detective

Okay, so we have the money management community, climbing back from the depths, holding a bucket of yummy gains, seeking alpha, looking to keep balance and come out Q2 a winner...

Then, suddenly, a stumble ... and the risk is of becoming so much shark bait.

Might today have sounded a lemming red alert? With only six days remaining until end-of-quarter, there's cause for concern...


This appears a train wreck waiting to happen. Indeed, with the July front month beginning with approximately 40% more CBOE Equity Options Call contracts than Put contracts open, we see how prospects for a charge into the abyss finds wide the gate and broad the way that leads to destruction.

And any "pause that refreshes" might amount to little more than a flailing push around the shark pool...

Fast Money
* * * * *

© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

There's an easy way to boost your investment discipline...

Get Real-Time Trade Notification!