Goldman Turns "Tactically" Neutral On Stocks, Believes S&P Not Pricing In "Downshift In Macro Picture", Proposes "Zero Cost Cross-Asset" Hedge For SPX Drop

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Mon, 05/09/2011 - 12:34 | 1255904 The Count
The Count's picture

Can't wait for the day that GS implodes.

Mon, 05/09/2011 - 14:17 | 1256274 rocker
rocker's picture

+10  These bastards belong in Jail.  It would be the ultimate Golden Swan.  When they put Lord Blankfein and or Neel Kashkari in Jail I buy my first bank stock.  Until then, I short on every rip. TBTF is a crime, they made them bigger.

Mon, 05/09/2011 - 12:38 | 1255907 buzzsaw99
Mon, 05/09/2011 - 12:39 | 1255916 Ratscam
Ratscam's picture

Anyone have the latest insider trading figures? 

Mon, 05/09/2011 - 13:24 | 1256045 Urban Redneck
Urban Redneck's picture

Ratscam, Any problems with the JBSICA execution? Thanks

Mon, 05/09/2011 - 16:50 | 1256854 Ratscam
Ratscam's picture

still no execution, tremendous paper BS according to UBS PB!

No time line given so far. So far 7 business days for physical redemption, this during "normal" times!!!



Mon, 05/09/2011 - 17:30 | 1256914 Urban Redneck
Urban Redneck's picture

Thanks for the update, is this going through UBS in the USSA or Schweiz - if Swiss they should just be able to give you the paper and let you pick it up.  Regardless, I now need to brush up on my German and reread the legally binding prospectus.

By the way the last time I pried silver out of the Crimex's cold dead hands (2+ yrs ago), it took well over a month.  I had to go through a broker because I didn't have enough cash then for a full contract, but he was prompt and only added 3 business days to the headache.

Mon, 05/09/2011 - 17:46 | 1257085 Ratscam
Ratscam's picture

unfortunately not that easy, order from UBS Zurich, just across the road from JB.

To give them credit it is the first exercise to them, me beeing such a nut case in finding out if it would work in reality.

Termsheet is available in English as well and contractually liable.

Enough funds to sort out any differences in price, especially since JBSICA is USD/CHF hedged. Just on the quanto hedge gain of 15% in the last 24 months.

Have to go to the gym now to train my muscles for the date of delivery.



Mon, 05/09/2011 - 12:39 | 1255922 JW n FL
JW n FL's picture

Stretched SEC delays filing deadline for Hedge Fund Registration by another “YEAR!”…


Categories: Hedge Funds

Topics: Dodd-Frank Act, Schulte Roth & Zabel, Regulation, Dodd-Frank Wall Street Reform and Consumer Protection Act, Securities & Exchange Commission (SEC), United States, US Congress, Mary Shapiro, Schulte Roth & Zabel, Kinetic Partners


Republican-controlled committee voted for a 18-month delay of regulations intended to reduce risk in OTC Derivatives.


Senate trying to hide Campaign Contribution Monies from Government (Military) Contractors with the Argument “Free Speech” LMFAO!!


Why Wall Street Ignores Real Risk And Why History Will Repeat Itself  Banker LOVE! Free Tax Dollars! Gov. Loves Lobby $'s!


****** "Who has an incentive to increase debt relative to equity in really big ways? Again, it’s the largest banks. The executives in these companies are paid based on their return on equity -- and the easiest way to increase that is to add leverage. Of course, this increases returns only when times are good. It also increases the potential losses when markets tumble. In other words, greater leverage increases risk." ******



Mon, 05/09/2011 - 12:44 | 1255934 Canucklehead
Canucklehead's picture

Based on Martin Armstrong's comments, I suspect the time to BTFD is June 13th.

Mon, 05/09/2011 - 12:46 | 1255942 Chasecran
Chasecran's picture

Goldman:  You need a hedge for SPX longs?   Buy a life insurance policy on Ben Bernanke.

Mon, 05/09/2011 - 12:49 | 1255957 Chasecran
Chasecran's picture

And then short the insurer of course...

Mon, 05/09/2011 - 21:34 | 1257686 Papasmurf
Papasmurf's picture

The insurer is backed by the US gov't.  So the insurerer will remain solvent longer than anyone else.

Mon, 05/09/2011 - 12:56 | 1255977 max2205
max2205's picture

Zero Hedge....they said it in code...."Zero Cost Cross-Asset Hedge for SPX"

Mon, 05/09/2011 - 12:59 | 1255984 firstdivision
firstdivision's picture

Anyone else watching the carry/es arb?

Mon, 05/09/2011 - 13:00 | 1255990 SheepDog-One
SheepDog-One's picture

Something hasnt been priced in X1,000 times yet? WHAT???

Mon, 05/09/2011 - 13:03 | 1256001 RobotTrader
RobotTrader's picture

If we close over the 11-day and 22-day.

Thousands of macro theme hedge funds that are short stocks will have to cover and go long.

Mon, 05/09/2011 - 13:19 | 1256030 SheepDog-One
SheepDog-One's picture

Wow another empty dried husk of a post from MomoFader!

Mon, 05/09/2011 - 14:46 | 1256366 JW n FL
JW n FL's picture

he is describing a forced hand, which would lead to a slaughter.. give him a chance Bro.. he is not here becuase he hates people.. now if he gets pissed on enough, he gets to trolling for fun.. but robo is good people, trust me on that.

Mon, 05/09/2011 - 13:16 | 1256031 bugs_
bugs_'s picture

goldman telegraphing bearish code

... --- ...

QE over


Mon, 05/09/2011 - 13:41 | 1256090 GFORCE
GFORCE's picture

Typical flip flop from an IB. They're one of the major reasons that the S&P is not pricing in downshift, due to their BS predatory analysis.

Mon, 05/09/2011 - 13:53 | 1256158 slewie the pi-rat
slewie the pi-rat's picture

i've been tactically neutral on paper since 1986!

Mon, 05/09/2011 - 14:51 | 1256378 JW n FL
JW n FL's picture

In interviews with more than two dozen fund managers, bankers and traders, no clear cause emerged for the plunge in price. Market players were unable to identify any single bank or fund orchestrating a massive sale to liquidate positions, not even an errant trade that triggered panic selling, as seen in the equities flash crash last May.

Rather, the picture pieced together from interviews on Thursday and Friday is one of a richly priced commodities market -- raw goods have been on a five-month winning tear over all other major investment classes -- hit by a flurry of negative factors that individually could be absorbed but cumulatively triggered a maelstrom.

Computerized trading kicked in when key price levels were reached, accelerating the fall.

"It was a domino effect," said Dominic Cagliotti, a New York-based oil options broker.


"Yesterday was organized chaos down on the floor, it was right back to the old days," said Chris Kenny, crude oil options trader at Lloyd Group. "The size of the move was almost unprecedented and you could see it all there. Greed and fear, that's what this job is all about."

Action in the options pit was still lively, they said, reminding them of the jostling and jousting of days gone by.

Miles away from the emotional rollercoaster that marked Thursday's puzzling rout, the new breed of computer traders counted their profits in anonymous offices across the country.

High-frequency and algorithmic traders, comprising half the oil market, seem to have weathered Thursday's mayhem without breaking a sweat, unlike many of the new breed who took a beating in the stock market "flash crash" exactly a year ago.

"We continued to trade normally and be involved in the market the whole time, no differently than the day before. We didn't change our risk parameters or our model parameters," an oil futures trader at an proprietary algorithmic trading firm told Reuters.

Unlike with the stock market's "flash crash," few old-school traders blamed the algos for the fall, although some did blame them for the end of a way of life that aided both transparency and liquidity in an often opaque market.

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