I think they are getting squeezed on purpose. In the face of getting squeezed, like most gamblers, they are starting to double down. It is at this point that the house moves in to take all of their chips. This could get ugly (and at best, it'll just stay sideways and a few guys will be ruined).
i agree that there are a lot of straight up gamblers trading on leverage right now. however, i think many are already fully leveraged -- no more doubling down for them.
Going on full leverage is russian roulette these days! We could very well see another flash crash or two. I think many of those 'traders' will be wiped out by such an event. Phew... hard to fathom!
There have already been many traders wiped out over the past month or so. Definitely those were margin calls that dropped price $20 to ~ $520 (with zero sells following).
I don't understand why bulls are leveraging long right now. The bubble predictions already failed. Use leverage to buy the bounce on a deep flash crash, or on a very strong breakout.
Leveraging long in a slowly descending sideways market? Bottom fishing like that will get you killed.
This. The thought is... well, I missed the bottom the last time, but it can only fall so much and the price is more appealing at a lower cut so unless it is going to fall forever then we'll make it back. It's the same rationale that would lead my father to double up on bets at the horse track in the hopes of "recouping" his losses. There was a lot of going to sleep on an empty stomach in those days.
Anyhow, they might get saved in the near term if there are enough big players entering for ETFs. At the same time, I highly suspect those ETFs are playing a hand in manipulating the market so that they can get in cheap -- I would be somewhat surprised if they aren't trying to play the role of the house in this market.
Good luck to all. Play your instincts, look towards, the future, hedge and minimize costs, and have fun... I am firmly of the belief that the best way to win is to let the crazies knock themselves off.
