Archive - Oct 15, 2010 - Blog entry

Volatility is King in the Cotton Market where the market trades Limit Up and Limit Down More Frequently than Interest Rates are Lowered.

Looming losses from the mortgage scandal dubbed “foreclosuregate” may qualify as the sort of systemic risk that, under the new financial reform bill, warrants the breakup of the too-big-to-fail banks. The Kanjorski amendment allows federal regulators to pre-emptively break up large financial institutions that—for any reason—pose a threat to U.S. financial or economic stability.

In 1931 Capone was indicted for income tax evasion. Attempting to bribe and intimidate the potential jurors, his plan was discovered by Ness's men. Following a long trial, he was found guilty on income tax evasion. In Alcatraz, where tight security and an uncompromising warden ensured that Capone had no contact with the outside world, Capone's control and interests within organized crime diminished rapidly...

Looks like Mercer's little Alaska problem had a big impact on its US DB investment consulting business...

Aww yeah, QE2 is finally on the way in news less surprising than learning another politician is a hypocrite, banks may have forged documents and been untruthful about disclosures, and Bar Refaeli is hot. QE2 became official when Ben Bernanke got in front of a room of top economists at their annual coven and clam bake in Boston (where Money McBags hears both the incantations and the soup were delicious)...

Krugman weighs in on the side of the rule of law in the mortgage crisis

In plain terms, corporate insiders, the folks who know their business and its prospects better than anyone are dumping shares as fast as humanly possible. They are literally putting their money where their mouths are when they say the US economy is AWFUL and business prospects are on par with those of February 2009 (before Bernanke even thought up that stupid “green shoots” nonsense).

Who could have imagined that the topic of the Speech you give on options expiration day with the dollar making new lows would just so happen to drive the dollar even lower and squeeze the markets higher - that is just a gosh-darn freaky coincidence!

An intro for newbies

My take on the speech.

As the markets got their first dollop of post-roboforger risk unwind yesterday, the barbarous relic has been relegated to second tier news status despite making new all time highs (at least versus the routed USD). We thought it would be worth reviving a once forgotten, but recently revived, method of technical analysis, especially as it is suited toward evaluating gold's parabolic rise.

A big spender with unlimited funds named Ben Bernanke of the Federal Reserve has upended the short side of the equation for many hedge funds. The amount of money he is willing to inject into the economy is thought to range up to $2 trillion, to be disbursed in convenient, bite sized $500 billion chunks. Rumors swirl daily in the Treasury pits that the money is already hitting the market, emboldening traders to take the ten year to a mind boggling 2.36% yield.

Bloomberg features what they consider to be the most successful and accurate financial analysts since 2008. Of course, the firm that "Does God's work" is the one that won! Reggie Middleton disagrees, and thinks a blog beat them all! I urge the mainstream media to look beyond the traditional banking centers of influence for analysis. Not only is it soooo old school in a new digital age, but they just might find comparable (of not superior) talent in the blogosphere.

This daily report is designed to help traders find opportunities to trade against this group. The premise is very simple we are looking for 66% of retail traders to be trading either long or short a currency pair, we then look for opportunities to fade (trade against) this group. For example if 72.99% of traders are long the USD/CHF we look for opportunities to short that pair. The pairs that we feel offer the highest opportunity for success are described in the Shortand Long Zones.