Goldman's Attempt To Ambush Dollar Aborted, Tactical Shorts Closed As Stop Losses Hit
Just as the year end onslaught on the dollar was spearheaded to a climax by Blankfein's minions, so did Europe finally decide to convulse under an unbearable lead of ridiculous mispriced "assets" and vomited up a whole load of troubling financial data, which spread from Greece to Austria to Ireland, setting sovereign CDS to multi month highs. Obviously, this did not help the weak dollar case and cost GS traders a few hundred million.
A note to traders indicates that while Goldman has not lost the war of intergalactic domination, it too, can lose the occasional battles:
Last Friday we were stopped out of two tactical trades, long EUR/$ for a potential loss of 1.8% and long GBP/$ for a potential loss of 1.1%.
Timing was clearly not optimal, and we were too early in fading the recent improvements in US data and the impact of Greek budget tensions. The technical break of important moving averages may have amplified the Dollar rally.
However, we continue to believe that the risks to both crosses remain skewed to the upside. In particular the balance of payment situation remains very Dollar negative. We also remain focused on very stretched speculative short EUR/$ and Cable positions and the related unwinding risks. We would therefore continue to look for opportunities to position tactically for Dollar weakness.
Fear not Goldman, there is only three months at most before Bernanke announces that he will be forced to buy all MBS from the end of QE 1 into perpetuity. In the meantime we suggest you do what you do best: short the dollar and bet on the imminent demise of America's middle class.
(5 votes)
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on Mon, 12/21/2009 - 05:57
#170753
I thought Goldman recently stated (reported here in the last month) that they expected a 20% dollar rally and that it would occur between 3 days or 3 months. It would appear that the trades listed above contradict this dollar strength statement.
on Mon, 12/21/2009 - 06:14
#170756
All their reports have a disclaimer saying their proprietary traders may take positions contrary to the analysis for clients.
on Mon, 12/21/2009 - 09:48
#170803
Can someone tell me if its bullish for Gold and bearish for the Dollar if the UN gets into the Gold money business?
http://seeker401.wordpress.com/2009/12/20/un-to-produce-gold-and-silver-coins-for-world-currency/
on Mon, 12/21/2009 - 06:14
#170757
I was just about to say it, but Apocalypse Now said it for me. A month or so ago Goldman came out with a "short the EUR/USD" call saying dollar strength was coming and it was silly to be long EUR/USD at these levels.
Yet another example of Goldman bullshit. Why anyone listens to these guys when they talk out of the side of their mouth is indeed a mystery.
on Mon, 12/21/2009 - 09:58
#170805
Whats the word for it? When GS says or does one thing and then the opposite thing happens/ or is what they are really doing?
anyway, yup. More of God's work.
One thing they ought to learn, and I hope it happens, you don't fuck with the Infinite.
on Mon, 12/21/2009 - 06:25
#170758
These guys aren't in the business of giving you free advice. They are in the business of making money for themselves and GS, period.
on Mon, 12/21/2009 - 07:31
#170766
The Yin and the Yang, Order Out of Chaos, Divide and Conquer...blah, blah, blah. Uncle Screwtape will be proud of his minions.
on Mon, 12/21/2009 - 07:34
#170767
And thus the monster reversal up in EUR/USD since the first NY alarm clocks went off... Also USD/CAD drops over 1% in that time - gold? unchanged.
on Mon, 12/21/2009 - 07:48
#170770
The attack began at 4:30 am est. and the chosen instrument was the CAD as you point out.
on Mon, 12/21/2009 - 09:10
#170788
Yes we had to bail out those that placed
40:1 bets against America. Short dollar,
long oil, crush the middle class. Then for
some reason the "crush trade" went against
them and what did they all do? Run to
Uncle Sam to get 100 cents on the dollar.
After they got it what did they do? Run
oil back to $70, gasoline back to $2.50,
interest rates back to 30%, and we know
they would go further if they could.
on Mon, 12/21/2009 - 09:19
#170793
Is it more un-American to short U.S. equities or to short the USD?
on Mon, 12/21/2009 - 09:46
#170800
un-American??
Do what ever it takes to make money, Cursive..
As for un-American..
Let the Congress be your guide..
on Mon, 12/21/2009 - 11:19
#170855
It's more un-American to send your employees to Spain on the threat of a windfall profits tax, or on massive bonuses executive may receive.
Good thing Goldman doesn't need to worry ablout that though... our so-called "leaders" in Washington have them covered.
BTW, that's a nice money grabbling fat man you have next to your logo, Tyler.
on Mon, 12/21/2009 - 10:00
#170808
Yeah and many thanks to the political critters who gave USD away like candy, fucking the voters, and unleashing this "burst" of patriotism on the USD.
Nice work.
on Mon, 12/21/2009 - 10:09
#170816
I don't understand you guys.
You do realize that this is the Goldman research view? They send this to clients as part of the normal research bundle, to try to drum up business, etc.
This doesn't mean that GS is taking that position at all. The research is a completely separate division from trading. The research economists come up with trading ideas and ride them for months at a time, whereas the trading desk can change their minds on a daily or weekly basis.
In other words, when they say "we got stopped out", that means a hypothetical trade recommendation to clients got stopped out, not that GS traders had this position on or lost any money.
on Mon, 12/21/2009 - 10:14
#170818
Welcome back Tyler. The only thing better than fresh napalm on a fine Monday morning is the bare knuckle burst of Goldman's nose.
on Mon, 12/21/2009 - 10:49
#170840
I do not see how these workers for God are good for this country, they purely work for profit for the partners. They should be highly regulated and boxed in or broken up. GS employees should not be allowed to work for the Fed Govt or any public office.
on Mon, 12/21/2009 - 12:08
#170888
Maybe god is running their stops.
on Mon, 12/21/2009 - 13:15
#170924
The USD rally won't stop until the Euro hits 1.3737.
on Mon, 12/21/2009 - 13:16
#170925
OK. About that USD supply problem (which Goldman seems to have).
http://www.zerohedge.com/article/dark-gray-swan-no-more-foreign-dollars-...
Remember this?
http://www.zerohedge.com/article/faber-gold-and-800-sp-barrier
I quote from the latter:
"...There will come such a time in the near future, when the flight from risk assets, engineered by the Fed, will become as pervasive as today's dollar carry trade. Ultimately the Fed is more interested in low rates than 100x+ P/E's (one hopes, or else a gaggle of retarded monkeys can do Bernanke et al's job better). And with Treasury QE done, and MBS being gamed to the point where the FRBNY is doing all it can to obfuscate just what is really going on in that particular market, one can be sure that Bernanke will be all too happy to sacrifice equities at the bond altar."
Heh...
on Mon, 12/21/2009 - 19:02
#171251
The demise of the middle class is a pretty safe bet.
on Mon, 12/21/2009 - 19:31
#171266
Who Controls Goldman Sachs?
Executive Officers:
Lloyd C. Blankfein(Jew) - Chairman of the Board and Chief Executive Officer
Gary D. Cohn(Jew) - President and Chief Operating Officer
John S. Weinberg(Jew) - Vice Chairman
J. Michael Evans(White European) - Vice Chairman
Michael S. Sherwood(Jew) - Vice Chairman
David A. Viniar(Jew) - Executive Vice President and Chief Financial Officer
Gregory K. Palm(White European) - Executive Vice President, General Counsel and Secretary of the Corporation
Esta E. Stecher(Jew) - Executive Vice President, General Counsel and Secretary of the Corporation
Alan M. Cohen(Jew) - Executive Vice President and Global Head of Compliance
Board of Directors:
Lloyd C. Blankfein(Jew) - Chairman and Chief Executive Officer
Gary D. Cohn(Jew) - President and Chief Operating Officer
John H. Bryan(White European) - Director
Claes Dahlbäck(White European) - Director
Stephen Friedman(Jew) - Director
William W. George(White European) - Director
Rajat K. Gupta(Indian) - Director
James A. Johnson(Jew Wife: Maxine Isaacs) - Director
Lois D. Juliber(Jew) - Director
Lakshmi N. Mittal(Indian) - Director
James J. Schiro(Jew) - Director
Ruth J. Simmons(Black) - Director
Management Committee:
Lloyd C. Blankfein(Jew)
Gary D. Cohn(Jew)
John S. Weinberg(Jew)
J. Michael Evans(White European)
Michael S. Sherwood(Jew)
Kevin W. Kennedy(White European)
Richard A. Friedman(Jew)
Timothy J. O'Neill(White European)
Gregory K. Palm(White European)
Masanori Mochida(Japanese)
David A. Viniar(Jew)
Christopher A. Cole(Jew)
Esta E. Stecher(Jew)
David B. Heller(Jew)
Marc A. Spilker(Jew)
Richard J. Gnodde(Jew)
Richard M. Ruzika(Jew)
Yoel Zaoui(Jew)
Gordon E. Dyal(White European)
David M. Solomon(Jew)
Edith W. Cooper(Black)
Isabelle Ealet(White European)
Edward K. Eisler(Jew)
Gwen R. Libstag(Jew)
John F.W. Rogers(Jew Wife: Deborah M. Lehr)
Pablo J. Salame(Mestizo)
Donald R. Mullen(White European)
Harvey M. Schwartz(Jew)
Alan M. Cohen(Jew)
Of the nine(9) Goldman Sachs executive officers, seven(7) are Jews. This is a numerical representation of 78%. Of the twelve(12) members of the Goldman Sachs board of directors, six(6) are Jews or have Jewish spouses. This is a numerical representation of 50%. Of the twenty-nine(29) members of the Goldman Sachs management committee, eighteen(18) are Jews. This is a numerical representation of 62%.
Jews are approximately 2% of the United States population. This means that Jews are over-represented among the Goldman Sachs executive officers by a factor of 39 times, or 3,900 percent, over-represented on the Goldman Sachs board of directors by a factor of 25 times, or 2,500 percent, and over-represented on the Goldman Sachs management committee by a factor of 31 times, or 3,100 percent.
This extreme numerical over-representation of Jews among the Goldman Sachs executive officers, board of directors, and management committee cannot be explained away as a coincidence or as the result of mere random chance. You must ask yourself how such an incredibly small and extremely unrepresentative minority ethnic group that only represents 2% of the American population could so completely dominate the world's most powerful and influential investment bank.
on Mon, 12/21/2009 - 23:15
#171385
hello From Jew york City, who you Jew ? Why are Jew so concerned about all the Jews that work for Goldman Sacks and own most of the important business: Mass Media,the President, assets of the U.S.A. and it's govermant ? Learn to love the Jew that's the best way to get along in the business world. there is nothing wrong with this, it's the natural New World Order of events. I wish Jew a happy Jew year.
on Tue, 12/22/2009 - 07:51
#171491
on Thu, 12/24/2009 - 03:22
#173539
So when White people are overrepresented in a particular field, even by a very small percentage, it's because of "discrimination", but when Jews are overrepresented in a particular field, even by SEVERAL THOUSAND percentage points, it's because they're "smarter and more hardworking" than everybody else.
I see. Thanks for clearing that up for me.
Can you say "double standard"?
on Tue, 12/22/2009 - 00:59
#171421
Dear anonymous (comment 171266).
Despite the anti-semitic undertone in your comment... As a gentile I feel obligated to respond and probe the depths of this further.
Is it unreasonable to presume that the Jewish heritage and culture raises the financial savvy to a level of 39-55 times the average american? I know plenty of average americans and plenty of jews and I would wager that those statistics are probably representative of the financial savvy of the jewish community versus the average american. Perhaps you are implying that we poor gentiles are culturally or genetically disadvantaged because of the prohibitions against usury and are implying that some form of affirmative action is required? I somehow surmise from the tone of your comment that you are not an affirmative action type.
Don't be a hater!
on Wed, 12/23/2009 - 08:34
#172516
I do not believe that Mr/Mrs. Anon 19:31 was being a "hater" or even anti-semitic, merely pointing out a statistical anomaly. As some have alluded to here, historically money changing and banking/finance were primarily the purvey of Jewish peoples, and as both Goldman and Sachs were themselves Jews, and GS is headquartered out of NY, which itself has a sizable (much larger than the country as a whole) Jewish population, it is not beyond reason to find a statistically larger Jewish presence within the leadership of GS, no more than there would be any abnormality in finding a larger than statistical average African-American presence within, say, the rap/hiphop/blues music business.
on Wed, 12/23/2009 - 10:32
#172587
I remember when the tech darlings were imploding in 2000-2001 and they trotted out Abby Joseph Cohen on CNBC to say that this was just a "pullback and a buying opportunity". I was trading stocks at the time and I remember that there was still some transparancy on the Level II screens at the time. Goldman was at the offer (sellers) of many of the issues in question ALL DAY LONG most days.....There is an old traders adage..."believe what you see not what you hear"
on Thu, 12/24/2009 - 03:26
#173540
Abby Joseph Cohen only has your best interests at heart, goy. Listen to her and follow her advice.
on Sat, 12/26/2009 - 06:18
#174809
Gee, I just wandered into here out of the blue. All I can handle financially is the distinction between simple and ocmpound interest: I think I can still compound for somebody.
I do offer a philosophical point, however.
Decades ago, I remember telling a Finnish friend with long direct & indirect experience of grassroots Israel that, hey, "did you Columbus had a Jewish grandmother?" And this elegant, tomboyish rural aristocrat of a friend responded with a pointblank bellylaugh punctuated by "Ha! They invented everything. No wonder everyone hates them!"
Well, that's likely accurate enough but the bottomline is that invention, or dominance of darn near everything Western does not entitle you to lord it.
There is something in this for the goyim too.
Arthur Borges in Zhengzhou