30-year Treasury Yields are about to spike along with a dollar rally. I feel this is the catalyst to trigger a sustained pullback in equities, which will reflect our rising unemployment rate and all the stimulus plans that are slowly phasing out. Equity Long/Short Market Neutral traders will have an edge in this market over [...]
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, [...]
“Cuz I’m free fallin, now I’m free fallin, free falling…..” General market theory suggests sharp sell-off’s need to be on high volume in order to culminate into a tradable bottom, ala the 10/10 and 11/20 lows. However, should the market make new lows on very little volume, as we have seen this past week, the [...]
By Edith Honan Reuters NEW YORK (Reuters) – Bernard Madoff, a longtime fixture on Wall Street, was arrested and charged on Thursday with allegedly running a $50 billion Ponzi scheme, U.S. authorities said. The former chairman of the Nasdaq Stock Market who remains a member of Nasdaq OMX Group Inc’s nominating committee, is best known [...]
This Week from FIN Alternatives: Hedge funds are about halfway done dumping assets to reduce leverage, and may unload another $200 billion to complete the deleveraging process, according to a new survey. A survey by Sanford C. Bernstein & Co.’s found that 63% of hedge fund managers agreed that the unwinding of assets is at [...]
Week of October 27th: Wed p.m.- Yesterday, markets rallied 880 points. Today, a 300 point rally reversed to close almost flat. This is a very bullish sign. The euphoria became excessive because we had rallied almost 20% in 2 days. So the late day reversal was a definite shakeout of the fast money, weak hands. [...]
“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 – [...]
Week of September 16 WED: Overnight thoughts: If Morgan is considering a takeover, then Morgan is in trouble. And as LEH showed, the downward spiral is viscous. It has to fall. Think about it. All financial counterparties to MS are looking to eliminate risk as fast as possible. Whether MS is well capitalized or not [...]
The entire universe of “Tiger Cub’s and Seeds” (offshoot funds of Julian Robertson) are sitting on huge long positions in the following high beta stocks: GOOG, RIMM, QCOM, BIDU, AAPL I doubt there is intentional coercion, but there is certainly dialogue. What are the short-term implications for fast money traders? These stocks will have support [...]
Financial stocks in the stock market presenting major buying opportunities but risk is high so trading sizes should be reduced significantly and long term positions built up over time. Exploit the volatility.
