Seeking Alpha
0
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

Mean Reversion Monkeys

Editor's note: Originally published on February 5, 1015

The buzz has been building on this trade for weeks. Clients, friends, people on Twitter, everyone I know has been waiting for a chance to pick the bottom in oil.

I’ve heard all this chatter on which triple-leveraged oil ETFs to use (I make a point of not knowing such things). They’ve been waiting for this opportunity since oil was at 80 bucks.

Interestingly, they could have shorted it when it was at 80.

Actually, they could have shorted it at 110.

Or 100.

Or 90.

Or 80.

Or 70.

Or 60.

Or 50. They could have shorted it at 50 and still made money.

But they waited this entire time, watching passively as oil plummeted over 60%, to play a 10-point bounce over the course of a couple of days.

Well, the mean reversion monkeys, as I call them, will… Read More …