When I think back on the financial crisis, my one regret was that I wasn’t more aggressive. To consider how fantastically-perfect the patterns were for shorting, it would have made sense to mortgage everything to the hilt and purchase puts index puts up the yin-yang (these are advanced technical terms which I don’t expect most Slopers to comprehend).
I don’t want to make the same mistake in 2014. As we approach the 5th anniversary of Earth’s Most Obviously Manipulated Market, it is understandable to be terrified of shorting. To my eyes, however, the indexes made their technical breakdowns last month, and February has been nothing more than an ascent into irresistablly high prices. Look at the Russell 2000 to see what I mean:
I thus have dedicated this weekend’s posts to a series of the most alluring short setups. Here is the first tranche, for your consideration: