During the throes of the 2008 bear market, I looked back at the Russell 2000 aghast and wondered to myself: how could I have missed something this obvious? Not to say that I wasn’t short and having a great year. On the contrary, it was (not surprisingly) the best trading year of my life. But the clarity of the pattern made me wonder why I didn’t just pour my life savings into $RUT puts and make a quadruple-digit percentage gain.
I vowed never to let something so “obvious” get away from me again.