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An Ugly Day For "Rose-Colored Glasses" Haute Couture

Tyler Durden's picture




 

From Peter Tchir Of TF Market Advisors

The big question is how many people are long stocks because they played the 200 day moving average bounce?  We have had at least 3 chances in the last week for investors to buy the moving average.  It seems like a lot of people had stopped buying the dip during the relentless march down for stocks, but everyone seemed to jump on the bandwagon that the 200 DMA was a big support for stocks.  I think a lot of investors got sucked in and allocated capital and are now weak longs.  One group waited until Tuesday when the market really seemed strong and 'was destined to test resistance at 1300' before buying in.  The other group of weak longs are those who typically don't play technicals but found the 200 DMA bounce theory too compelling to resist.  It is always difficult to trade when losing money, but the ability to make really dumb decisions goes up when we have positions that were put on for reasons that we don't normally follow.  The technicians are used to these trades, it is what they do.  The 'fundamentalists' are not and are more likely to react badly to losing money here.  People must be scratching their heads a little, since it seems, according the rose colour glasses world i)  Greece fixed, ii) Contagion avoided, iii) economic soft patch is only a soft patch and no risk of double dip, and iv) Bernanke will be there for us.

It seems clear that the sovereign debt crisis is far from over.  SOVX is back to recent wides.  Greece may be resolved for now, but that doesn't fix the problems in Ireland and Portugal.  Greece may not be the first domino to fall to spread the contagion, but there is nothing to stop Ireland or Portugal from being the triggering event.  To believe that saving Greece ends the contagion risk, is just wrong, it just shifts (for now) the domino most likely to start the chain reaction.  And to me, at least, it is still not clear that Greece has been fixed yet.  One good development at least, seems that the market is back to focusing on who owns the bonds, and realizing contagion will come from losses on bonds and not some mythical CDS exposure.

Credit markets still feel weak, and we are working on a piece that shows how time and again, credit markets have long slow grinds better followed by short big drops when liquidity goes  away.

I am cutting some SPY short just to be safe here in case there is more 200 DMA money, but will add again on any bounces or short some HYG depending on how they trade relative to each other.

This oil release thing seems a bit silly to me, and if anything, is just another example of governments failing to 'wait til they see the whites of their eyes' mentality.

 

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Thu, 06/23/2011 - 10:06 | 1394496 The Axe
The Axe's picture

what people????

Thu, 06/23/2011 - 10:11 | 1394531 augie
augie's picture

I think Algo's count as people now. 

Thu, 06/23/2011 - 11:00 | 1394843 Frankie Carbone
Frankie Carbone's picture

Let's wait for the landmark SCOTUS opinion on that. My money is on Scalia writing the majority opinion. 

GS HFTA vs United States. 

(Hereforth known as "Algo v United States")

Thu, 06/23/2011 - 11:12 | 1394922 augie
augie's picture

If that Wallmart Decision is any indication. 

Thu, 06/23/2011 - 12:04 | 1395156 jeff montanye
jeff montanye's picture

you and augie have it about right.

Thu, 06/23/2011 - 10:10 | 1394519 JW n FL
JW n FL's picture

Herd Mentality Rulez Bitchez!!!!!!!!!!!!!

Thu, 06/23/2011 - 11:04 | 1394833 TruthInSunshine
TruthInSunshine's picture

Bernank gave the warning to get the hell out of Dodge to even the non-insider crowd - most likely to avoid being accused of not doing so after the full meltdown of equities occurs in what will be an election season (he can say "roll the tape"; and yes, I know that the Fed Head is 'non-political' /sarc/) - a month ago.

The spread between how fundamentally awful the economy is and equity valuations (some of the shittiest equities on the face of the globe have risen the most in the past 30 months - I'm talking truly insolvent, garbage can companies), not to mention how much risk-on appetite there is (much of it backed by no-interest loaned fiatskis - and much of that on the assumption that if gambled and lost there will be another ginormous bailout) has never been greater - never.

Bernanke/Paulson/Geithner/Congress pumped and pumped their little hearts out for the BSDs on Wall Street, and those guys got paid and have cashed out of the Bernank Casino, pawning their paper off on the bagholders, and now Bernanke has cover to let 'risk on' dumb money sheep - the kind always late to the party - lose their asses, as he, Obama, and Congress can play the 'we are not favoring Wall Street' into election season, and just to prove that they are "no fans of Wall Street" (now that the big players on the inside are already risk off), they'll let it all burn.

It's a fun, easy and criminal way of making money if you're an insider, and it's a real Ponzi if you're not.

Thu, 06/23/2011 - 11:52 | 1395111 eureka
eureka's picture

Amen, TRUTH SAID IT.  Anyone long stocks will get shredded. The Next QE IS the end.

Thu, 06/23/2011 - 11:58 | 1395134 eatthebanksters
eatthebanksters's picture

New York lamposts will soon be decorated with the swinging bodies of morally vacant and corrupt banksters...justice will eventually prevail, unfortunely cowboy justice is usually much harsher in its application.

Thu, 06/23/2011 - 12:12 | 1395178 jeff montanye
jeff montanye's picture

i doubt it, although a single assassination of a truly connected member of tptb would get their very rapt attention.  probably make the date famous too.

Thu, 06/23/2011 - 11:01 | 1394854 Frankie Carbone
Frankie Carbone's picture

I almost feel bad taking their vacation money. 

Almost. 

Thu, 06/23/2011 - 10:07 | 1394524 hedgeless_horseman
hedgeless_horseman's picture

It is called bait for a reason.

Thu, 06/23/2011 - 10:07 | 1394527 Cognitive Dissonance
Cognitive Dissonance's picture

They are going fast with only a limited selection left. Hurry or you'll miss out.

Thu, 06/23/2011 - 10:12 | 1394541 Cassandra Syndrome
Cassandra Syndrome's picture

I thought Tyler Durden wore Rose Sunglasses?

Thu, 06/23/2011 - 10:26 | 1394630 hedgeless_horseman
hedgeless_horseman's picture

I am Jack's sense of optimism.

Thu, 06/23/2011 - 10:39 | 1394702 Cognitive Dissonance
Cognitive Dissonance's picture

:>)

I stand corrected.

I am also Jack's sense of impending doom notwithstanding the rose colored glasses.

Thu, 06/23/2011 - 11:23 | 1394969 bigdumbnugly
bigdumbnugly's picture

just think of them as being blood-red.

Thu, 06/23/2011 - 10:07 | 1394529 TradingJoe
TradingJoe's picture

Few days ago I said load up on PUTSSSSS! Really happy NOW!

Thu, 06/23/2011 - 10:10 | 1394553 augie
augie's picture

+1 we break that 1252 level i'm going to riverdance down West Street. Come and get me Squiddy!

Thu, 06/23/2011 - 10:07 | 1394533 Biosci
Biosci's picture

Greece is resolved?  All they had was a confidence vote.  Mr. Tchir is getting a little ahead of himself.

Thu, 06/23/2011 - 10:08 | 1394538 BeerWhisperer
BeerWhisperer's picture

Queue Deer in Headlight.... PLEASE

Thu, 06/23/2011 - 10:18 | 1394601 gordengeko
gordengeko's picture

What do gay deer have to do with price of oil in greece?

Thu, 06/23/2011 - 10:33 | 1394658 augie
augie's picture

That reads oddly like the intro of an off-color joke. 

Thu, 06/23/2011 - 10:38 | 1394718 gordengeko
gordengeko's picture

Why did you have to go bring race into it?  Just because deer are brown?

Thu, 06/23/2011 - 10:42 | 1394749 augie
augie's picture

 it's cool man, i'm Part Chilean. It's P.C. for me to make jokes like that. 

Thu, 06/23/2011 - 10:52 | 1394807 gordengeko
gordengeko's picture

FYI : no gay albino or brown deer were psychologically harmed when reading these satirical comments.  :)

Thu, 06/23/2011 - 12:15 | 1395222 jeff montanye
jeff montanye's picture

no but they are getting restless as they are still waiting in line.

Thu, 06/23/2011 - 10:09 | 1394543 Ivanovich
Ivanovich's picture

How much do you want to wager that the big boy banks were out a long time ago?

Thu, 06/23/2011 - 10:17 | 1394575 Village Smithy
Village Smithy's picture

I'll take that bet. With 100,000:1 odds.

Thu, 06/23/2011 - 12:23 | 1395244 jeff montanye
jeff montanye's picture

qe2 in its entirety looks like the distribution top.

Thu, 06/23/2011 - 10:10 | 1394551 bingaling
bingaling's picture

This is just speculation that the shit might hit the fan and may trade sideways for some time until the uncertainty of greece is taken out of the picture . IMO the EU will keep doing what it has pushing the default another 6 months out at a time until something gives

Thu, 06/23/2011 - 10:12 | 1394564 SparkySC
SparkySC's picture

Bernanke will be their to apply either lube or sand... god forbid both. 

 

LOL

Thu, 06/23/2011 - 10:12 | 1394565 Village Smithy
Village Smithy's picture

Well it seems that bernack has managed to enlist the IEA on the plunge protection team. Nice stick save !

 

Thu, 06/23/2011 - 10:17 | 1394569 Josh Randall
Josh Randall's picture

Love seeing JPM below that magical $40 threshold - even on it's Bullish SNAP news (i.e. more new customers)

Thu, 06/23/2011 - 10:17 | 1394571 topcallingtroll
topcallingtroll's picture

I am most definitely a weak long.

I.could be scared out of the market with a loud noise.

Thu, 06/23/2011 - 10:58 | 1394832 d00daa
d00daa's picture

What exactly are you still "long" in this market?

Thu, 06/23/2011 - 10:13 | 1394573 treemagnet
treemagnet's picture

I'll bet they come back at 3:00 EST for the stick save.  Fuckers.

Thu, 06/23/2011 - 10:18 | 1394580 RobotTrader
RobotTrader's picture

Another day of hell for:

 

- General Jim

- Eric King

- John Hathaway

- Peter Schiff

 

"But Jim, you promised....."

Thu, 06/23/2011 - 10:20 | 1394591 alien-IQ
alien-IQ's picture

and don't forget Robotrader...who a mere two days ago said "I'm going long".

you wouldn't want to be kept of such an illustrious list.

Thu, 06/23/2011 - 10:22 | 1394599 d00daa
d00daa's picture

Says the asshole that advocates "going long" just as the dead cat bounces into the 50DMA.

Stopped out yet genius??  LMFAO

Thu, 06/23/2011 - 10:44 | 1394760 alien-IQ
alien-IQ's picture

yeah he's pretty damn quick to point out other peoples losses but he's pretty damn reluctant to admit to any losses of his own.

In fact, I can't recall a single post where he has admitted to taking a loss. But many many celebrations of his gains.

Where I come from...we call that "bullshit".

Thu, 06/23/2011 - 10:29 | 1394662 Bastiat
Bastiat's picture

Clown.

Thu, 06/23/2011 - 10:14 | 1394581 alien-IQ
alien-IQ's picture

"It all looks beautiful to me"

Stevie Wonder

Thu, 06/23/2011 - 10:14 | 1394582 Boilermaker
Boilermaker's picture

Don't fret...the bid-up calvalry will show up by the close with an unexplainable rally.

Why in the hell would they stop now?

Thu, 06/23/2011 - 10:18 | 1394583 Its the Vatican...
Its the Vatican Stupid's picture

if you want QE3, you're gonna have to BEG for it, bitchez!!!

Thu, 06/23/2011 - 10:16 | 1394589 oogs66
oogs66's picture

+ P''

Thu, 06/23/2011 - 10:18 | 1394586 Incubus
Incubus's picture

It's all gonna come down:  the temple is being propped up so it can be looted more thoroughly.  They pushed, just to see how much they could get away with, and they've found that they can do pretty much anything they want.  The "outrage" of the people is limited to numbers that cannot effect the change that is needed to detach the parasite upper classes from this husk of a socio-political system.

And when there is nothing left to loot, they'll let it fall apart.  Don't worry though, they'll have their next approved system ready to be implemented, and the dumb masses will accept that system just because they'll associate "rebuilding" society as some sort of opportunity to improve it—which never turns out to be the case.  

We've got thousands of years of the history of civilizational ruins to see that we're not any different from the rest of 'em. 


...full of sound and fury.  Signifiying nothing.

 

 

Thu, 06/23/2011 - 10:20 | 1394606 Caviar Emptor
Caviar Emptor's picture

There's plenty o trouble bubbling up, just under the surface. Amazing how much is not being reported. More than usual. Means the amount of trouble is worse than usual. 

The Biflationary vice-grip is tightening and now it's really makin' them sweat! Bernanke saying deflation is licked. Gulp. Sweat. And oh yeah we got oil coming out of our ears, so let's do the radical thing: dip into the SPR. And hope it works. Gulp! But the numbers all show different. I don't even need to provide links to the numbers in the US and global economy that are all flashing red. Yet with all the printed dollars in the world prices for necessities of life and doing business are going through the roof. 

Look for some really scary news to come out soon

Thu, 06/23/2011 - 10:45 | 1394763 Dapper Dan
Dapper Dan's picture

Scary news has come out all week, did you read the Counterpunch article from a ZH poster yesterday? Radiation from fukushima possible caused a 35% increase in infant mortality, and I found this last night on NHK.

 Researchers simulate Fukushima radiation spread

A group of Japanese researchers have created a computer simulation of how radioactive substances from the troubled Fukushima Daiichi nuclear power plant spread across the globe.
Researchers at the University of Tokyo and Kyushu University on Wednesday released images of the simulation using a forecast system for air pollution and yellow sand.

The simulation was based on the scenario in which contaminated air was vented from the crippled No.2 reactor building on March 14th, 3 days after the massive earthquake and tsunami.

The simulation shows some of the radioactive material was carried 5,000 meters into the air by ascending currents of a low-pressure system that passed near Japan the next day.
Computer images show the substances were then carried by westerly winds and spread over the Pacific Ocean.
The images indicate that on the 4th day after being vented the substances reached the west coast of the United States, and on the 7th day they approached Iceland after crossing the Atlantic.

Wednesday, June 22, 2011 22:01 +0900 (JST

 

TOKYO, June 23, Kyodo

Japan warned China on Thursday not to conduct marine research in Japan's 200-nautical-mile exclusive economic zone off the northeastern Tohoku region, State Foreign Secretary Chiaki Takahashi said.

Thu, 06/23/2011 - 10:23 | 1394612 Greeny
Greeny's picture

People are buying stocks not for 1-3 days outlook, and when to buy like not in the day like today??? As many ZH members are happy look at your Silver, it tanked 3 times more than general Market and keep falling like a rock, Nice f* protection... And yes, I'm buying
stocks, today, now.

Thu, 06/23/2011 - 10:44 | 1394737 alien-IQ
alien-IQ's picture

sell the house, sell the car, sell a kidney, take the money and go long...and hold til end of year.

let us know how it goes.

Thu, 06/23/2011 - 10:44 | 1394756 Greeny
Greeny's picture

Ohh, don't tell me what to do, dumbass..

Thu, 06/23/2011 - 10:41 | 1394742 WonderDawg
WonderDawg's picture

I guess someone has to be the bigger fool.

Thu, 06/23/2011 - 10:51 | 1394778 Greeny
Greeny's picture

Yeah, fool check your freaking Silver, buhahaha.. :)

Worthless sh*t just collapsing..

Thu, 06/23/2011 - 10:57 | 1394812 WonderDawg
WonderDawg's picture

Meh. I have some physical I bought 2 years ago for the long haul. Other than that, own some shares in a bear fund, to which I'm adding, and sitting on my dry powder until QE3 is announced.

 

Thu, 06/23/2011 - 11:20 | 1394957 Frankie Carbone
Frankie Carbone's picture

I would like to thank you in advance for adding your daughter's college fund to the value of my DXD call options. 

She can always come work for me. I pay $7/hour. The work (chipping away a 1,000 tons of boulders where my tennis court is going to go) is tough, but it's gratifying. 

Thu, 06/23/2011 - 12:04 | 1395154 eatthebanksters
eatthebanksters's picture

If you add lunch to the deal I'll come work for you! (It's better than what I have now).

Thu, 06/23/2011 - 11:35 | 1395012 Bastiat
Bastiat's picture

At 35.07, up 13.7% on the year.

Thu, 06/23/2011 - 10:48 | 1394787 d00daa
d00daa's picture

What the fuck are you buying, tough guy?

C'mon, disclose your positions so we can all laugh at you.

 

Disclosure: long XRT Jul 50 puts

Thu, 06/23/2011 - 10:53 | 1394793 ElvisDog
ElvisDog's picture

Just curious without being critical, what are you buying?

Thu, 06/23/2011 - 11:06 | 1394858 Greeny
Greeny's picture

Debt traded securities with 7% + div (Example MKV) PLV PLS

and so on

gotta get them preferably under $25 won't give you

full list..

few MLP's and Canadian Miners (GOLD/Silver)

Even today they are higher than couple of weeks ago

I think bottom is in for Miners.. Even if you check GG

you'll that YTD it's still higher.. Here small Canadian

Run into those bad days AVR.TO got about 5 more, but they

are above my buying range for now..

Thu, 06/23/2011 - 11:17 | 1394916 Greeny
Greeny's picture

Do you know what preferred stock stock is? Check one for example: ALBMP Alabama Power Co., 6.45% Series Non-cumulative Preference Stock Call price $25 that where I'm waiting like Pike Fish.. Got it few times.. Check performance, those stocks don't give a f* about days like today..

Comcast Notes:

CCS, CCT, CCW (to high already) and so on..

Got it?

Thu, 06/23/2011 - 11:27 | 1394953 TruthInSunshine
TruthInSunshine's picture

Good luck on those Alabama infrastructure plays, and collecting your risk premium in that long line of soon to be stampeding creditors, as JP Morgan and a few other well-placed big boys are the only real note holders, literally.

'Preferred stock' gets so much guaranty in default evens /sarc/.

Make sure to double down on any infrastructure/utility play in Montgomery County, while you're at that poker table.

And make sure to look around the poker table, and check out everyone's facial expressions, including Jamie's, to get a better idea of who the biggest fool at that table is.

After all, it's not like Alabama isn't literally bankrupt, nor Montgomery County, in particular, and that all assets worth anything have been pledged, pledge again, and triple-pledge as securitized assets to the smart money - which isn't you, friend-o.

JPMorgan Chase Gains Booming Profits after Suckering Alabama's Biggest County AllGov
June 17, 2011 Jefferson County, Alabama, is placing nearly 1000 public workers on administrative leave without pay as officials struggle to pay off a staggering debt of $3.2 billion. The financial crater county leaders dug dates back to the 1990s when they ... Alabama Atty General Requests Intervention In County Sewer Rate Hike Wall Street Journal Debt-Laden Alabama County Lays Off Nearly A Quarter of Staff Wall Street Journal
June 23, 2011 debt-laden Jefferson County, Ala., grappling with the loss of a crucial revenue source, a jobs tax, handed out 547 pink slips as of Wednesday, the director of its human resources department, Demetrius Taylor, said. ... Jefferson County Courthouses Stay Open CBS42
June 23, 2011 BIRMINGHAM, Alabama (WIAT)-The Jefferson County Commission voted to give the court system $27 thousand dollars to fund security for the next three weeks. This is not a permanent solution, but Judge Scott Vowell is happy he says it will give them time ... Alabama County's Woes Threaten Its Neighbors Wall Street Journal
June 21, 2011 One leading analyst, Matt Fabian of Municipal market advisors, advised investors to shy away from all Alabama bonds, citing the state's unwillingness to help Jefferson County as it grapples with $3.2 billion in debt from a soured sewer bond financing ... Jefferson County courts face unusual troubles in budget crunch al.com (blog)
June 19, 2011 By Eric Velasco -- The Birmingham News BIRMINGHAM, Alabama -- Recent budget cuts have affected courts in nearly two-thirds of the states, but the impact may end up being most severe in Jefferson County, officials said. Layoffs of security personnel due ...

 

 

Jefferson County layoffs begin; 546 to get pink slips al.com (blog)
June 17, 2011 Commissioners said they did what they could to avoid the layoffs by first chopping the budget, then reducing the workweek and finally seeking replacement revenue from the Alabama Legislature, a move that largely failed. "It's tough to be a part of the ... Young Hickory's mean tone Cullman Times Online
June 17, 2011 In fact, the Jefferson County Republican senator may well be crown prince of Alabama conservatives. But there is another side of Scott Beason that troubles the hearts of compassionate Alabamians, both liberal and conservative. ...

 

June 16, 2011 Alabama Attorney General Luther Strange filed a motion late Wednesday in order to intervene on behalf of Jefferson County sewer users to oppose a 25% rate hike proposed by receiver John Young earlier this week. ... Alabama Attorney General Luther Strange wants to intervene in Jefferson County ... al.com (blog)
June 16, 2011 By Barnett Wright -- The Birmingham News Alabama Attorney General Luther Strange on Wednesday filed a motion to intervene on behalf of sewer customers in matters involving the Jefferson County sewer debt crisis. The motion was filed late Wednesday in ...
Thu, 06/23/2011 - 11:29 | 1394999 Greeny
Greeny's picture

Alabama Power is just Electric company, besides

I don't have to argue and don't want to.

Silver is down 4% today and that particular stock is up..

Alabama power just recently closed few Notes ABA, and

others.. It's like keep bitching about Local state problem

just because Company located there? Keep many notes even through

2008 crisis.. Nothing is perfectly safe, NOTHING, at least those

instruments are much, much less risky than stocks..

So buy Canned food friend and stay cool.

Thu, 06/23/2011 - 11:42 | 1395021 TruthInSunshine
TruthInSunshine's picture

You're almost right that nothing is safe.

Unless you're a true BSD like Buffet.

As but one of many examples, he got warrants, and made sure the warrants were insured doubly and triple-time, in the event of a default, due to any potential of 'greater creditor' claims, on his preferred stock allocations in companies such as GS.

Then, of course, there are his very friendly relations with gov.org people.

Anyways, I do wish the best for you. Public sector plays, whether outright equity allocations or bond purchases, are most definitely going to experience 'credit events' of significant magnitude over the next months, and as ChairSatan Bernank has made very clear (one of the few things he has), the Federal Reserve will not intervene in state and local unit of government crises, as it did with matters pertaining to the Federal Government or 'TBTF' and 'systemic risk' financial actors (aka the select few sitting on mountains of CDOs/CDSs).

Thu, 06/23/2011 - 11:25 | 1394961 ElvisDog
ElvisDog's picture

Mining stocks drive me crazy. No rhyme or reason to their movemets. I dumped all of mine a couple of months ago. Glad I did. I'm not a short-term trader and don't like the risk-reward odds that I see right now. I'm almost entirely in cash, physical PM, and popcorn waiting to see what shakes out over the next few months.

Thu, 06/23/2011 - 11:30 | 1395002 WonderDawg
WonderDawg's picture

Right there with ya, Dog, except for the bear fund. My physical PMs include plenty of brass and lead, as well.

Thu, 06/23/2011 - 11:47 | 1395072 Greeny
Greeny's picture

"Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market" -Warren Buffet"

Thu, 06/23/2011 - 11:42 | 1395050 Greeny
Greeny's picture

If you ever trade PM's you should know that Summertime

is the worse time for the PM's in general, that's when you have

to buy... Well at least place few on your list just to watch

and see where they go let's say be Dec-Feb.. What you see today

it's just a freak show. This dollar puke will die on the wine

today or tomorrow, Fed will trash dollar in any case, which will

lead commodities higher (not lower).. Today yes, they cheer

Oil down $3, nice buying opp, same goes for Silver/Gold IMHO..

Thu, 06/23/2011 - 11:50 | 1395083 WonderDawg
WonderDawg's picture

Well, that all sounds good, if you're right. However, I'm betting that we're in a secular bear market and a deflationary depression. So I think the dollar is getting stronger, not weaker, and all markets will soon tank, including equities, PMs, commodities and bonds.

But that's just me.

Thu, 06/23/2011 - 12:01 | 1395145 viahj
viahj's picture

try wordwrap rather than a hard return

Thu, 06/23/2011 - 10:22 | 1394613 DonnieD
DonnieD's picture

Election year = Obama put. I predict some Krugman-esque plan that will see the S&P shoot up 500 points and the dollar turn into Charman Ultrasoft overnight.

Thu, 06/23/2011 - 10:27 | 1394645 the grateful un...
the grateful unemployed's picture

the point and figure on the INDU is pretty scary. i would think the jugglers may have to drop the ball for a while here, and wait for fall to rally back. if they want to buy they will try to incite plenty of fear, between now and then. if they want  to sell in fall they will try to make the chart look like hope. fear is much better, maybe than can convince Bernanke to open the spigot (used to be a punchbowl). the election will largely be over by next spring. so a Santa Claus rally would choreograph nicely.

Thu, 06/23/2011 - 10:46 | 1394769 Johnny Lawrence
Johnny Lawrence's picture

Bill Gross is getting raped on his short bond trade.

Thu, 06/23/2011 - 10:52 | 1394785 Downtoolong
Downtoolong's picture

Spread trade of the day – short rose colored classes and go long the x-ray vision ones which allow you to see through the Walls of Central Banks.

Thu, 06/23/2011 - 11:31 | 1394991 Incubus
Incubus's picture

made in fukushima.

Especially resistant to godzilla radiation breath flames.

Thu, 06/23/2011 - 12:51 | 1395395 upWising
upWising's picture

Nankster: Put on your rose-coloured tri-focals and turn the crayon around.  The other end works too.

 

Thu, 06/23/2011 - 13:41 | 1395581 AldoHux_IV
AldoHux_IV's picture

Shifting of risk is what the banks know best and thus their paid for politicians.  Where 'o where the carousel stops no one knows.

Thu, 06/23/2011 - 15:28 | 1396093 dcb
dcb's picture

depends if you are buying long term,  or day trading. the way I have bought I really haven't lost much from where I started buying, and I have made more in how I have been using my shorts . bif load up on shorts as we got high yesterday because we were at the trend line on the udn. tight stops so I sold what I have bought, then buying at the dip today, riding up and selling, with rebuying the short as we got higher. I used money flow index, 10 minute period, and the macd crossover. it's worked very well for intra day trading for me, and I started my shorts at the top, 1350. (that is the top of the trend channel ).

now I expected a bit of a bigger bounce off of the bottom of the trend channel

How come I am the only person in the world who uses speed lines. I swear this is the method the algos' use to trade, and it has been right on target for tops and bottom all along.  the big bounce today exactly on the speed line. this line has to be observed if thye want the year end at 1450 (the consensus number). So I don't know what is going to happen, but this stuff works great for me.

 

as I have stated before on this site, close your shorts on a thursday because Mr. market doesn't like to go uinto the weekend looking bad.

Thu, 06/23/2011 - 15:48 | 1396262 dcb
dcb's picture

bought long at the open as the futures were so low. the shorts closed out when we went above the high if the first 1/2 hour, then a buy 3 shor 30 min before the close the 3:30 sell off. markt neutral once more

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