Markets: Implementation of a “dead man switch”

Posted: October 13, 2014 in Uncategorized

Volatility jumped 40% closing at over 21 this week, in full panic” mode.

Dead Man Switch is  device that allows an action even if a man is dead (like a trigger that you have constantly press otehrwise a bomb goes off.

What they have to do this two things with each other.

Simply the market is very scary. It could be a simple sell off of 10/20% or the start of a 2008 scenario all over again.

There are the signs of both patterns and so there is no way to tell.

The best thing to do is to implement a Dead Man Switch. SO look at  what are you “acceptable losses” (as money or, even better, market level), and act on it.

And remember that no market goes in one direction only. It is possible that after a brutal week like last week, we could have a calm week.

The 28 November the Federal Reserve will probably conclude Quantitative Easing. And it could be probably badly interpreted by the market. It could also say that they will not end QE. And it will be probably badly interpreted by the market either.

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