[bcg1]

I have no interest in the hubris of shorting into a raging bull market, especially when investor sentiment is fearful (http://money.cnn.com/data/fear-and-greed/).

Also I'm not saying that the phenomenon in my above comment is something would be an efficient use of money to trade. Personally I'd much rather look at out-of-favor sectors like commodities than try to pick up pennies in front of a steamroller by attempting to arbitrage the S&P 500 and S&P 501+ (as you put it)

In any case, thanks for your comment it does give some important food for thought

[chair94]

I have no interest in the hubris of shorting into a raging bull market,

Read what he wrote: he stated that if you believe what you wrote, you can collect the spread by shorting side you claim underperforms, and going long on the side you claim outperforms.

If what you said is true, it's extraordinarily low-risk arbitrage.

If what you said is false, you're best served to say a bunch of bullshit that 's unrelated and then not make the trade.

Oh... I see... so you know you're full of shit.

[bcg1]

Shorting exposes you to potentially unlimited losses and you might have to keep putting up money to stay in your position if the market turns against your short position (even if the other side of your trade is working). You'd have to be very sure about your timing or have unlimited funds/credit in order to use that strategy. And even if you made money doing that, it doesn't mean that there isn't a better opportunity elsewhere in the market, risk adjusted or otherwise.

But if it makes you feel good to swear at strangers on the internet, you can sign up for anonymous accounts and say I'm full of shit, and I'll be glad that I could help boost your self esteem.

[eru]

> Shorting exposes you to potentially unlimited losses [...]

You can buy far out of the money options to limit those.