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re: Dow down 700 pts

Posted on 12/7/18 at 12:30 pm to
Posted by LSUcam7
FL
Member since Sep 2016
7909 posts
Posted on 12/7/18 at 12:30 pm to
quote:

Think of how many positions have to be sold when selling just one ETF


Maybe true in some of the leveraged loan ETFs, high yield bond ETFs and some other niche asset classes...

But SPY/VTI/etc... is loaded with very liquid names at the top of the cap spectrum.

The real risk in my opinion is a flash crash and you sell your ETF intraday at far less than NAV.

There always a macro scare out there... Yuan devaluation, China hard landing, oil collapse, Brexit, Grexit, etc...

It’s great to pay attention but don’t let the negatives totally blind you from the positives.
Posted by Hussss
Living the Dream
Member since Oct 2016
6744 posts
Posted on 12/7/18 at 12:43 pm to
Yeah I always look at both sides but the pattern of this topping process since Jan. doesn’t look too positive to me. Huge head and shoulders with this SPX 2600-2800 channel being the final shoulder before breaking down.

Best of luck
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