Notwithstanding my annoyance at last week’s “technical glitch” that probably made a few people over a billion dollars, the problems it caused for my programs because of extremely large tails in many stocks is a bigger hindrance. The lows set on Thursday’s sudden cascade 1000 point sell-off, although we’re being told was caused by a [...]
The desk I run is an Institutional Long/Short Equity desk which tries to maintain a “market neutral” book. This doesn’t mean “buy 1000 shares of IBM and 10 puts”. What market neutrality means is that one need not be concerned about the overall direction of the market, as momentum traders are, but rather have long [...]
Gold went over $1000 and sustained a rally to $1020. A dip to test, and re-test $1000 is likely. This magical number will continue to be used as the line at which bulls and bears continue to thrash each other relentlessly like a tug-of-war match in an Ultimate Fighting chained rink. I’m watching the 70.50 [...]
With all of the clutter and insanity due to groups turning into recruiting grounds and advertising forums for esoteric and mindless products, I was compelled to launch my own LinkedIn Group which is being emphatically embraced by the systematic and discretionary proprietary trading universe, to my delight. I know many of you are Prop. Traders, [...]
The US Economy, according to the behavior of key market sectors, is on an absolute tear and within six to nine months, the data is going to be screaming “expansion” at a breakneck pace. Bond market behavior over the past several weeks suggested the same except the talking heads tried to rationalize it as “bond vigilantes” wreaking havoc on the President’s fiscal policies. A monkey could have rationalized better than them.
The largest share redistribution of the country’s financial companies is about to take place right before our very eyes. This is the final crescendo of the Financial Crisis of 2008: Massive share sales of the strongest banks that are standing right now. .. All of a sudden, showing strength for the past several weeks and [...]
This is a chart of Crude and ERY. ERY scale is on the left, crude scale is on the right. However, the crude scale is inverted to make it easier to see the actual divergence trade. You can clearly see the divergence in the first half of February. Crude proceeds to head lower while ERY [...]
While investors are focusing all of their attention on US banks, another systemic risk is brewing compliments of the Eurozone and Chinese Banks. Even Swiss banks are sitting on a time bomb as all of them have lent trillions of Euros to Baltic states, Russia and Latin America. For all intents and purposes, these loans [...]
Week of November 10 Still bullish on the market but defensive in nature. Not putting myself out there for anything, in either direction. Take trades for the time being and generate cash flow. When the rally comes, it’ll be obvious. TRIN behaving very bullish all week, spending Wed & Thur around 3.00 and as high [...]
Week of November 3 THUR- Heavy volume on the sell-off. Market’s spooked by the lopsided gov’t. As expected, but didn’t exploit. Monitor airlines for entry levels (see below). Many charts look like gaps from Tuesday were closed. Only problem is volume expanding across the board. So many charts look terrible, I feel like we’re going [...]
“We’re going to see five hedge funds fail for every bank, maybe more,” A moment of reckoning for many hedge funds may come at the end of this month, when their exposure to credit default swaps must be “marked to market” to reflect the increased obligations at the end of the third quarter. Olivant, the [...]
US Dollar Index Daily Chart: US Dollar Index confirmed uptrend in June, new intermediate term high at $74. Price continued to consolidate forming a base before breaking out above consolidation and 200d-MA. Small retracement in form of bull flag continuation pattern. Achieved its target and formed a negative momentum divergence at upper Bollinger Band – [...]
