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IPFS News Link • Stock Market

"I, Who Hates Shorting, Just Shorted the Entire Stock Market. Here's Why"

• https://www.zerohedge.com by Wolf Richter

But this morning, I shared in a comment in our illustrious comment section that I'd just shorted the SPDR S&P 500 ETF [SPY]. My time frame is several months.

I'm sharing this trade so that everyone gets to ridicule me and hail me as a moron and have fun at my expense in the comments for weeks and months every time the market goes up. And I do not recommend shorting this market; it's nuts. But here's why I did.

The stock market had just gone through what was termed the "greatest 50-day rally in history." The S&P 500 index had skyrocketed 47% from the intraday low on March 23 (2,192) to the close on June 8 (3,232). It was a blistering phenomenal rally. Since June 8, the market has gotten off track but not by much. It's still a phenomenal rally. And it came during the worst economy in my lifetime.


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