My Stop

It seems that everyone is long as this market keeps levitating every day, despite poor economic news and company reports. Most people seem to recognize that the market is over-extended to the upside, but the universal response from the longs “Don’t worry, be happy, I have a stop, so I will be OK.”

That’s all very well, but setting a stop loss price is not the same as finding someone to buy at that price. There could be a lot of other people trying to get off at the same stop and the bus may not wait for everyone to squeeze through the doors. Just sayin’

But in the meantime, if you are long you are right. Pump pump pump go the HFT algos. Until the music stops. And it will.

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