This page has been archived and commenting is disabled.
Decoupling Trade #4 Is Here: ES Now 10 Pts Rich TO EURJPY
The trade that just keeps on giving, the EURJPY-ES decoupling is once again making its daily appearance. For the one trade that consistently closes its intraday "decoupling" day after day, here is your daily chance to rake in some easy money courtesy of the ongoing margin calls at corr desks who are too busy unwinding BP to care about this guaranteed (yes, yes) arb. And, yes, 10 pts is obviously relative: for those anal enough to index this trade, feel free to do so, you will get the same result. All joking aside, this divergence has been happening way too often in the past week, which we really can only attribute to the massive pain happening behind the scenes in BP and the drillers (RIG down 36% in last 20 days now). Buy EURJPY, Sell ES (September vintage), pick several easy bps, sit back and enjoy 4 out of 4. On the other hand, just ask Boaz Weinstein about "guaranteed" trades. And if not, we are sure investors in his most recent "basis" hedge fund will do so, soon enough.
»
- 4953 reads
- Printer-friendly version
- Send to friend
- advertisements -
just waiting now.....thanks ZH for keeping an eye out on this.
And the DOW slips below 10,000...................again.
Thank God I've modified my DOW 10,000 cap with changeable numbers.
The new one says
"DOW 10,000*
* Approximate"
ahahaha! that is awesome! velcro numbers? ahahahaha!!!!!
"Hey look! Dow Jones, 9,000. Time to change the hat!"
I wonder if LiesMan sleeps/fishes/showers/poops with his DJ 14,000 hat on?
Scrolling LED Badges...
Dumb question: What I don't get is how you know which to buy vs sell. If I remember right, the trade went the opposite way last time this divergence happened (last week).
Thoughts?
you are trading convergence, sell the one thats higher and buy the lower and you profit on the convergence.
Thx!
Been banging this one and will continue to do so, thank you very much.
Personally I think this is deliberate free money offered to keep the troops happy and in line. There are no coincidences in the market. None. Period, end of sentence.
The market doesn't move, it's moved. This is happening for a reason. I have a plausible explanation but no way of knowing if it's correct. But it's not an accident.
At least the HKT & SIN desks have something to do on the overnight.....
I think I can hear crickets with today's odd day. Some big movement is brewing, and today is the eye. I'm betting downward but maybe they are in the process of syncing the machines for one last massive short squeeze before the precipitous drop to the 800's.
Below 1063 and the boxes are upside down for a push to 1036.
EURO chart indicates a move soon :
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
Today's June 9th, how did you get the chart for June 10th?
Ya i noticed today ES climbed way above when the EURUSD pair was still not much higher than 1.2..definitely a divergence there as well.
All they seem to have left is their stock market and their Dow 10,000. When that goes and goes with authority I cannot even comprehend the lies and propaganda they will resort to. Rest assure there will be much blame passed around.
RIG
42.26 -4.07 (-8.78%) Jun 9 2:58pm ET
But I was assured by madhedgehog that if I averaged down, I'd be ok!
http://www.madhedgefundtrader.com/may_28__2010.html
"1) Buy when a Lynch Mob is About to Hang Them From the Lamp Post. "
_______
Well, to be fair, all the guys and girls at CNBC said the same.
WORD
excellent timing ZH team, very nice
Boaz Weinstein
June 1 (Bloomberg) -- Boaz Weinstein, the bond trader who lost more than $1 billion last year at Deutsche Bank AG, has raised about $160 million since the end of April for his new hedge fund, according to two people familiar with the matter.
Saba Capital Management LP, based in New York, plans to start trading in August, said a third person with knowledge of the firm. The people asked not to be identified because the information is private.
Saba, Hebrew for grandfather, was the name of the credit unit Weinstein started at Frankfurt-based Deutsche Bank in 2001. Weinstein, 35, lost money in 2008 after betting on bonds of companies such as Ford Motor Co. and hedging some of those wagers with credit-default swaps, contracts to protect against or speculate on default, people familiar with the matter said in January when the plans to start his own fund were made public.
“One bad year of performance, especially when that year was 2008, shouldn’t preclude people from raising money, so long as they have a good pedigree and sound long-term track record,” said Peter Greene, a partner in New York at law firm Lowenstein Sandler PC, whose clients include hedge funds.
City: New York
____
Firm: Deutsche Bank
Age: 31
One of the most popular traders on Wall Street, Weinstein is also among the most talented. As head of global credit trading-U.S., overseeing approximately 100 traders, he still spends a good deal of time trading for the firm’s internal hedge funds and prop-trading book. A star chess player, Weinstein was also once something of a card counter.
Estimated income: $10 – $15 million
WOW!
you got burned this time as the pair is moving in the same direction. the 10+ points gained in ES were wiped out by the loss on the EURJPY purchase. Just when you thought it was safe to go back in the water...
This story should be enough to get the message across to America, to take every penny out of investments everywhere and stop playing with the crooks. This is what the bankers think of people:
http://articles.moneycentral.msn.com/Investing/Extra/american-investors-...
ANother decoupling trade has appeared after closing in addition to this one...