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Time To Collect The "Free Money Arb" Profits

Tyler Durden's picture




 

At 3:15 we highlighted today's "free money arb."  An hour later it is time to take profits.

 

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Wed, 08/18/2010 - 16:24 | 528973 Ragnarok
Ragnarok's picture

Bravo!

Wed, 08/18/2010 - 16:26 | 528977 scratch_and_sniff
scratch_and_sniff's picture

I didnt bother with the aud/jpy side...No point this time. Nice one though, i just shorted the shit out of s&p and dow, although dow waited untill after close to drop 60 points!

Wed, 08/18/2010 - 16:30 | 528990 tFXi
tFXi's picture

Awesome trade, agreed why bother with the aud/jpy side?

Wed, 08/18/2010 - 16:40 | 529008 lettuce
lettuce's picture

probably because it's a pair trade.

Wed, 08/18/2010 - 16:45 | 529021 firstdivision
firstdivision's picture

Punt naked much?

Wed, 08/18/2010 - 16:55 | 529038 Bankster T Cubed
Bankster T Cubed's picture

yeah, I don't think GM had anything to do with it

simply the program winning as soon as some banksters propping things up for the close got their close

(I hope they got shanked)

Wed, 08/18/2010 - 16:57 | 529046 Max Gibson
Max Gibson's picture

how curious... what would be correlation between AUDJPY and 2s10s30s these days?

Wed, 08/18/2010 - 17:02 | 529062 lettuce
lettuce's picture

Can't get a nice intraday chart on BF021030 unfortunately. It does publish daily data but that's not going to be so helpful here... Good question, though. I'm sure you can just proxy the 2s10s30s with equities anyway ;)

Wed, 08/18/2010 - 20:54 | 529411 ZeroPower
ZeroPower's picture

+1

Long the SSO for uber leverage :P

Thu, 08/19/2010 - 08:18 | 529903 Max Gibson
Max Gibson's picture

it's not about finding a way to grab free money.... it's about finding connections and patterns... wouldn't it be cool to see R>0.9  on AUDJPY/2s10s30s for the past few days

Wed, 08/18/2010 - 17:09 | 529056 jbc77
jbc77's picture

Thanks Tyler. I fucking pounded this one. Unfortunately I work all day for a living and unless ZH alerted me, I would have missed this. Again, thanks for the free money Tyler as you have given me so many times. I wish I had the time to try to discover these things  on my own but right now I don't have the means or time.

Before the year is out I'm going to make a donation to ZH, heck I figure I owe ZH a piece for all the arb alerts over the last few months.

 

ZH IS THE premier financial blog on the web these days....this website is unfucking matched. Many imatators but only one original.....

Hats off and props to ZH.....

Wed, 08/18/2010 - 17:13 | 529082 Jeffersonian
Jeffersonian's picture

Keep the convergence updates coming! Those of us who only have limited time to check in on the market appreciate it!

Wed, 08/18/2010 - 17:41 | 529133 plocequ1
plocequ1's picture

All kidding and sarcasm aside. This sounds like code red. I have a feeling that somethings not right and we will all soon hear a big flush. Thanks Tyler.

Wed, 08/18/2010 - 17:46 | 529152 Tarheel
Tarheel's picture

quick couple grand! BOOYAA

thanks Tyler

Wed, 08/18/2010 - 17:53 | 529153 omi
omi's picture

Why do you make this so complicated? How are you supposed to trade that in real-time though?

2010-08-17 ES 5m    http://i.imgur.com/1Cmwk.png      momo starting to weaken, watch the drop below WHERE THE LAST UPLEG STARTED.

 

2010-08-17 ES eod 5m We drop to the level. Bam. so unpredictable.      http://i.imgur.com/l9axd.png  

2010-08-18 ES 5m  OMG!! we dropped to the next significant level. Who could possibly have though it could happen? Would it be possible we could test where the PREVIOUS up-move started? ( after all <insert some bullshit macro news> happened)    http://i.imgur.com/X7N9w.png

2010-08-18 ES 15m  Indeed we do!    http://i.imgur.com/NgrZ0.png      Could it be possible that momentum is picking up and we're setting up for an up-move? No way to tell without <insert some central bank release>

2010-08-18 ES 15m 1pm  OMG! where did that move came from? Those evil HFT! How could a retail player possibly see that? He has no chance!    http://i.imgur.com/nPqUC.png

2010-08-18 ES 15m 1-16pm  Holy crap! we tested all the way to the high, it would totally be surprising if we try to retrace to few established levels below. Besides, no one trusts those 98s because <insert some crop report had an issue>    http://i.imgur.com/MFthD.png

2010-08-18 ES 15m 3-45pm  NO! it can't be happening! We cannot be testing a 9am region from which acceleration at 12:15 happened  on weak momo running into previous highs in a double-top manner.  After all, fed/tres agreed to manipulate markets up to let GM ipo go through (I actually felt bad and for the 1st time in last 2 weeks looked up some piece of news)     http://i.imgur.com/PlSJy.png  

2010-08-18 ES 15m 4-07pm What the hell? How dare those ES test that level again?! Who do they think they are? Those evil HFTs! If HFT was a person, I'd whack his head with a giant wrench and throw his babies into a vat of phosphoric acid. Oh no! if momo picks up, it could go and test that dreaded 92.50s NOOOO.       http://i.imgur.com/dcxlr.png      or on weakening momo could test the starts of those previous up-moves (as clearly indicated by flow-of-funds report)    http://i.imgur.com/B7TKa.png  

 

This is just too much! How can a retail investor have a chance in this absolutely HFT-ladden rigged game.

 

*** end of sarcasm ***

 

Seriously folks, just practice your technicals and you will never be confuzed by the news.

Wed, 08/18/2010 - 18:53 | 529250 MichaelG
MichaelG's picture

Yeah, wicked. Well done all o' yer. (I mean that. It will not be apparent in what follows.) Because some of us are secretaries. It doesn't matter if I give a shit about the 2s10s30s butterfly. We're all fucked. Take your profits while you can and strengthen your defences against those who can't.

Gold has 'intrinsic' value - until it doesn't.

Wed, 08/18/2010 - 20:23 | 529369 omi
omi's picture

Why anyone other than credit traders give a F about flies? There are good interviews and commentary from time to time on ZH, but what absolutely pisses me off is

1. News story X caused SP move Y

2. Picking some obscure, like a credit fly and saying that caused the move.

 

These two things get people just running in circles and it never helps to understand what actually caused the move, which is just technical trading, testing up and down, levels + momentum. There is undoubtfully correlation in the markets, but markets still trade on their own. You can trade SP without looking at any other chart. Without looking at any news. That's kind of irrelevant.

Wed, 08/18/2010 - 19:29 | 529303 gigit
gigit's picture

lol omi.  seriously, it's in the chart

 

Wed, 08/18/2010 - 20:24 | 529371 omi
omi's picture

yep, thanks for teaching if I think who you are, but constantly changing nicks.

Wed, 08/18/2010 - 20:05 | 529356 william the bastard
william the bastard's picture

Dodd- Frank. Dodd- Frank. Repeat. Dodd- Frank. Dodd Frank....

Wed, 08/18/2010 - 20:58 | 529419 ZeroPower
ZeroPower's picture

I get what youre saying, and you look like an experienced enough trader to i suppose only have the ES on your screen. I find it useful to see EURUSD as well as AUDJPY but then some days i look at one of the GBP pairs to see whats up. It all depends on what youre used to really.

Wed, 08/18/2010 - 22:45 | 529577 omi
omi's picture

Not experienced enough, but definetely through the phase of relentlessly trying things that don't work. I like FX too and Grains especially. Just ES is what I look at the most.

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zhaowei's picture

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Thu, 08/19/2010 - 04:03 | 529797 zhaowei
zhaowei's picture

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Sat, 10/02/2010 - 06:23 | 620561 Herry12
Herry12's picture

There are certainly a lot of details like that to take into consideration.I read and understand the entire article and I really enjoyed it to be honest.
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