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Re:Dow Hits 20000 for First Time by tgb on Wednesday January 25, 2017 @11:34AM (#13482849)
I'm just a little confused about this though. If everyone thinks the market will decline due to Trump, then doesn't the market actually decline? What I'm saying is that apparently there were even more people making the opposite guess.
Re:Dow Hits 20000 for First Time by mattnewton on Wednesday January 25, 2017 @11:45AM (#13482986)
My theory is if you have real tradeable info/models that is worth more than ads on a blog you keep your mouth shut until the trade is done.
Re:Dow Hits 20000 for First Time by jjawssd on Wednesday January 25, 2017 @11:46AM (#13482998)
The invisible hand supports Trump
Re:Dow Hits 20000 for First Time by cderwin on Wednesday January 25, 2017 @11:43AM (#13482949)
Or a Trump victory was already priced into the market -- it doesn't necessarily mean people weren't bearish on Trump.
Re:Dow Hits 20000 for First Time by elastic_church on Wednesday January 25, 2017 @11:54AM (#13483089)
It is so so so much more nuanced than that.

In one way, the more people that bought put protection on their stock portfolio created the bullish pressure that took weeks to unwind.

(When you buy puts, the market maker is going long the stock as their own hedge. most akin to a bookie)

Re:Dow Hits 20000 for First Time by tinytim69 on Wednesday January 25, 2017 @01:46PM (#13484506)
If you buy puts, MM sold puts and will sell shares against since he is holding a deltaLong position from selling his puts (he makes money if the underlying goes up and lose money if the underlying goes down (which is why you bought the put). To hedge that risk he would sell shares against the sold put so that the risk of the underlying move would be covered.
Re:Dow Hits 20000 for First Time by elastic_church on Wednesday January 25, 2017 @03:53PM (#13485967)
you're right, but yes the concept I'm referring to was staying delta neutral. When people close their put options before expiration, the MM's create buying pressure.
Re:Dow Hits 20000 for First Time by crusso on Wednesday January 25, 2017 @12:10PM (#13483286)
I would differ with your use of the word "guess".

The underlying dynamics of the market have supported the people who have been long on it.

Re:Dow Hits 20000 for First Time by celticninja on Wednesday January 25, 2017 @11:36AM (#13482873)
Irrational market.
Re:Dow Hits 20000 for First Time by DrPhish on Wednesday January 25, 2017 @11:45AM (#13482981)
Without trying to be snarky, this sounds like a post-hoc rationalization. How do you differentiate between an irrational market and a bad prediction? I'm honestly at a loss
Re:Dow Hits 20000 for First Time by celticninja on Wednesday January 25, 2017 @11:46AM (#13482996)
I don't have an answer to that but I bet no one does regardless of whether you are an expert, trader, president or man on the street.
Re:Dow Hits 20000 for First Time by jackmott on Wednesday January 25, 2017 @11:57AM (#13483138)
the prediction is still bad. if the prediction can't predict that the market is irrational.
Re:Dow Hits 20000 for First Time by jakeogh on Wednesday January 25, 2017 @12:52PM (#13483847)
nonsense. The people making the predictions were just wrong.