InvestorGeeks

I shorted down a burning ring of fire
I went down down down
And the flames went higher

Black Thursday? Or will The Fed return and carpet bomb the market with money?

I still maintain this has a few more months to run - watch the Shanghai Composite. We may have a head and shoulders pattern that is going to break down from an overall peak of 4910. If that rolls over and the market hasn’t had a big down day already, I am predicting more carnage.

My hedging is working somewhat well. I am still losing money, as I am net long overall, but it is acting as an anchor and letting me enjoy the show that is unfolding.

The real question? How is it that I managed to go short, while the hedge funds, qants and other foolish managers couldn’t see the forest for the trees? (Which raises the next question - Why am I not being paid millions of dollars per year?)

Jim Cramer and James Altucher (thestreet.com) seem to have woken up to the problem now, but couldn’t see it 3 months ago?!? I enjoy listening to their discussions, but it seems surreal that they weren’t sounding the horn before the crash.

Phil John grew up in Perth, Western Australia. He has BSs in Biotechnology and Chemistry. Phil worked for 3 years as an IP Attorney before moving in house as the IP Manager for a small, publicly listed pharmaceutical company. Finance-wise, he is particularly interested in the Austrian school of economics and their theories on money supply and the business cycle.