Two things I’m hearing being reported this morning:
One of the Najerian brothers reported on CNBC that there were massive put options bought on the QQQ’s today and the CEO of Interactive Brokers (which tends to have a more savvy, institutional base of clients) said for the first time in their history, their option traders are net short.
That’s a HUGE deal showing that institutions/pros are very leery of the market and see it as a bubble. Now, they’re certainly taking a VERY aggressive move by shorting an uptrend, but they can hold on longer and not get spooked as easy as retail investors.
So, the point of my commentary is not to mimic what they’re doing but rather to see that they’re seeing what we’re seeing. A massively overvalued market in a bubble. I’d rather be long SLV, PPLT, GDX, FXY, etc. than short the market, since those longs can benefit from a declining market, with much less long-term risk.