The Effects of Fear on the Market

The final moves up are about fear. Everybody associates fear with the downside but the reality is at the end of a market rally a blow off top happens reflexively. This is why longer dated calls are great ad relative to stock ironically, and it's something that that ultimately has three effects right not only does it force reflexively less short positioning so there's less ability to buy back into a rally or there's more selling that has to happen. It also creates just more potential energy we're raising something higher and higher from the floor which can then drop significantly more. And then lastly it actually forces higher and unpins ball eventually now that unpinning a ball is a part that has not happened