I have noticed, and I’m pretty sure it’s true, that the more people short the market with the VIX or other short products ( ETNs and the like ), the more the market seems to POP back up again shortly after any down move.
My thinking is that they are simply waiting for people to buy these market type short vehicles and then they simply take the money from those shorts and move it into the longs thus keeping the market moving higher no matter what.
And this will keep working AS LONG AS the money in the shorts does not dry up. But soon it will and THEN the FED won’t have any more money to prop up their insanely inflated market.
Now I’m not sure if they have done this in the past but it is both ingenious and immoral at the same time, which often ingenious is.
It is ingenious because they basically can keep the market up in times when it should be going down, thus eliminating any risk to an economy run by idiots and imbeciles. I’m not saying they are are imbeciles but their monetary policy, well let’s face it it sucks!
It is immoral because anyone with any bit of brains and common sense can see we are living in a time with over inflated housing prices and the stock market has been due for a correction for several years. So anyone with brains, money and the balls to short the market will GET TAKEN!
Throw common sense out the window.
Take from the smart and give to the stupid.
That’s the economy we’re in right now.
IMHO of course.