Zeev's Turnips Patch-No Politics (ZEEV)

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I never said Zeev's no good. I was addressing a specific type of call under a particular circumstance that Zeev makes in relation to certain types of stocks such as the Q's, but many seem to trade the QQQ's on. Even Zeev himself addressed this issue several times on SI, when he reduces long exposure, it should not be taken as an advice to go short.

There is a fundamental difference between the canaris such as the Q's and the semi equipment stocks, and the broad market index equivalents such as QQQ. I call the latter "dumb" because they move late and move more slowly. The canaries on the other hand move fast and are frequently used to probe and test the market. The first pull-back in a rally usually gets reversed. With the canaries however, because they whip-saw all the time, even if you are wrong about the general direction, you may still be able to make out with a "$0.02" profit simply due to a fake support penentration, which happens more often than not. With the QQQ, however, you will unlikely get those opportunities to bail you out. So if you are more comfortable trading with QQQ's at a less hectic pace, avoiding shorting the first pull-back is a good strategy. All just my humble opinion of course.