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Get Your Convergence Hats Out
Time to short the ES, long the AUDJPY. With nothing except momentum (and grotesquely mutated at that) working right now, the recent batch of horrible news only managed to push stocks about 8 points rich to intrinsic. It seems the beta chasing levered play is getting exponential, with corerlation desks now applying multiple of leverage to underlying correlations that were not there before, explaining the disproportionate surge in the ES compared to the move in AUDJPY. Which is why for those willing to test out today's increasingly broken market, the time to put today's FX-risk convergence trade on is now.
P.S. Whatever you do, don't look at the massacre happening right now over in EURCHF land.
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Failry big gap there. I'm in like flynn baby!!!!
HI and good morning tyler. thanks for the update. euro/swiss franc right?
Wow you do lots of acid. Gonna crack that whip, and no,never CHEAP leather, jeez
WHAT. don't put words in my mouth. cause i am really me, with my real name. unlike everybody else on this site. i own my words. don't do acid. i wouldn't do very well under that influence, so don't say that or write that. crack some whip, maybe. no i don't really do CHEAP anything. not worth the money. go away.
Hey,a) first part of comment: a joke. B) second part of comment referring to a comment you made to me several days ago. ok? Chill :)
OK JOKES are good. laugh at yourself, even better. hey i am doing pretty well with no delete button and just my command X. girls best friend.
Funny you should mention the eur/chf.....just looked at it before refreshing ZH page and seeing this post.
Thats been a 24 hour bloodbath. When will the SNB step up and get hammered?
No until they see deflation cuting into swissie prices and spending habits. Ie not for technical reasons. Have heard 1.27, 1.25. i think its all bullshit, they are gone until economic data - not price levels - forces them to come back. Could be a while.
Free money, bitches!!!!!!!!
what a complete f*cking joke thgis market is
you would stand better odds at black Jack in LV
Really if they keep this up , I give up
there really is zero justice in this world if that happens
we now have a triple bottom/bounce at the 1040 level with stocks going to 1050 or more in MINUTES. This is trueely a broken market
where is the SEC? Where are the handcuffs
I've got the handcuffs ...
...
you got quite a bright orange, bitch.
Kathy, you need to chill out baby.
W H Y ?
SHORTY i like you, you read my rhythms. but , why do i need to be told to
c h i l l out.
i am pretty chilled, honestly. can't find a more chilled bitch still alive then/than me.
http://www.youtube.com/watch?v=o-tT62bpYlU
well honest, shorty, i some times think your playin me. to the hilt.
hilt |hilt|
noun
the handle of a weapon or tool, esp. a sword, dagger, or knife.
successful though, mind U.
Short ES last day of August coming into the holiday weekend? I`ll take a pass....
These usually converge in a day. If it was Thursday or Friday maybe you would have a point.
Is there ever a scenario when /ES sets the pace and the pair follows?
Can a computer be made to love another number beside Dow 10,000 and S&P 1050?
It's a strange attractor!
jal
We've got a stranger ranger here.
Don't waste your energy on shorting this market:
It has been a long and painful slide for this dog since 2008 Leo... What's changed?
Quarterly results less horrific than expectations.
Saw that... thanks Meph. I was looking to see if Leo had a driver to buy for longer than an hour.
WOW Leo posts a stock chart that went up .30 cents whoopee!! Leo, yer a pig.
Leo, you and your $4.00 piece of shit stock picks can blow me
Not right now. It's cloudy.
lets take a look at this "market"
5 hindenberg omens, 3 head and shoulders targetting 1010 , 875 a nd zero
a death cross, the worst housing stats on record, a double dip eveident to all with an Iq above 5 and still the market goes up 10 points in minutes on a consumer confidence level that is still way into recessio n territory
how sick is that
I have been shorting markets since the death cross and am still at a loss
The only thing I can think is that the market is "clever" and not as dumb as I we think and that its pricing in HYPERINFLATION?
This market is not clever, its just got a faster processor than you.
Everyone is short except your pension fund. And they ain't selling. But some shorts arent as stubborn as you, they get lifted out.
IMO institutions are sat there laughing, watching short term traders eat each other. They have asset allocation meetings in September. If they cut their equity allocation, 850 is easy.
Well said- the allocation to FI will be interesting as well...
Word to OP and Word to you.
As both have risen earlier, it will be keen to seen both simultaneously fall.
HFT's are my friends, they talk to me, I hear their voices.....They provide me with direction in my life.
Direction? Mostly up?
Hey Ty do the Nekki overlay to fer double trouble....
i wouldn't touch this "Trade recomendation" with a barge pole. the ES has been lagging audjpy for days and is finally playing catch up, this was just the closing of a larger divergance, there is no trade to be had here.
WTF?
"the ES has been lagging audjpy for days and is finally playing catch up"
Still you see no trade after coming to that conclusion?
Confused? YES!
LMAO
try reading on.. "this was just the closing of a larger divergance,"
it is now closed, and you would have been buying the ES and selling audjpy, not what tyler is recomending.
LMAO, retard.
try reading on.. "this was just the closing of a larger divergance,"
it is now closed, and you would have been buying the ES and selling audjpy, not what tyler is recomending.
LMAO, retard.
LOL,
Obviously you do not seem to understand that the play here would be a "convergence" play and shorting the ES but what would you know, thanks for chuckle.
Here you go: http://www.zerohedge.com/article/convergence-half-way-done
You talk about "divergance" and call me a retard....
You may want to brush up on both your lingo and web-etiquette.
It's just some friendly advice. Now have a nice day.
LMAO
For me there's too much end of month nonsense to play his cross-asset correlation today.
For example, massive equity bid chasing for the close in europe in the last 15 mins.
And FX is a complete mess today.
You want at a nice correlation trade, try FTSE/SPX. Be quick. Please, talking my book here ;-)
Better than asking us to buy fucking solars.
Nothing to do with AUD/JPY. You're making this way too complicated.
Just keep in mind 1037, 1052.50, 62.50, 68, 72.50, 84.50, 88, 92.50
For some reason X2.50 tend to be really popular levels. All you're doing is bouncing between levels. Think of it as being in a dark cave where you can't see anything other than you know that you can run in two directions and there are doors that periodically open. And you keep in a dark cave trying to push yourself through one of the doors. The way to see which door is likely to open you have to expanimine accumulation/distributions via momentum. Not sure how to put this concept simpler that everyone keeps making too copmlex.
lol, another call that lost you money
What happens to this correlation if the BOJ starts to step in?
That is a DAMN GOOD QUESTION!
I have no idea.... maybe a little noise but nothing big enough to ruin the arb opportunity (in my opinion)
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