We're right on the edge. Capital spent manufacturing early-October's massive short squeeze targeting the hopelessly insolvent might have a few days more remaining to be recovered, as a still positive technical bias but awaits the materialization of weak hands itching to plow their nickels into such high-priced toilet paper as are equities these days.
Yet weak volume rather suggests the wait for suckers might prove in vain. So, possibly the best to be had is suspended animation before the floor gives out and, wha la, October lows challenged.
Then again, the floor could give out in a second and send the hopelessly insolvent spiraling into the abyss with all haste and commensurate calamity. With so many vulnerabilities portending a pulling in of horns and contraction, a fat lady's singing is the only thing right here whose certain coming is confirmed in a market struggling to attract a bid.
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© 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.
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