Avenue QQQQ

My daddy is an ass! Go buy an index, it's the best type of trade when the market is in a major downtrend. The QQQQ's were in my face by 5 sticks at one point today. They rallied back in pity and are only 3 1/4 away from cost. I feel like the market is driving the wrong way  into traffic on Aveneue Q .

While my buddy Warren Buffet is investing in the market and robbing the markets everyone is losing their shirts. Warren is trying to make some coin by buying in under his terms and screwing the shareholders. He is already down sharply on his investment, but he can at least sit on it indefinitely. This is an unprecedented marketplace that is going to take a long time to rebound.

All because of 3 letters CDS (credit default swaps)

Here is the definition of a CDS

A credit default swap (CDS) is a credit derivative contract between two counterparties, whereby the "buyer" pays periodic payments to the "seller" in exchange for the right to a payoff if there is a default or credit event in respect of a third party or "reference entity".

In the event of default in the reference entity:
The buyer typically delivers the defaulted asset to the seller for a payment of the par value. This is known as "physical settlement".
Or the seller pays the buyer the difference between the par value and the market price of a specified debt obligation. This is known as "cash settlement".

By calling the product a SWAP instead of INSURANCE, the SEC does not having the authority to regulate the product. So while the SEC is chasing down some boiler room stockbroker who is looting grandma's life savings, the big boys are looting America and leaving us to hold the bag.

I am going to ask my daddy to search for monsters under my bed before I go to sleep tonight. It was that scary today. I am hoping for a market rally, but the INDU at 9000 is a stone’s throw away.