In the beginning of the second week of October of last year, this blog talked about the odor coming from the stock indexes and the bull fish bait being consumed by managers. Shortly afterwards we made new highs and now are faced with the death dive feature of trading. Now the death dive rationales are less frequent than the dumb ass long for the long term rally rationales but they contain the same three idiot elements; (1) a certitude about the direction, (2) an inability to define a risk strategy for the direction, (3) a complete surprise when the trends reverses. So this hard break is reaching maximum speed because it is all about getting out. Getting out at prices which are not very attractive but better than zero. Like most breaks such as these, they end faster than the methodical bubble rallies, thus the adage ' eat like a bird, shit like an elephant.'
So bulls take solace in the fact that the bear's meal usually is brief by any measure, but you have to let him eat.
