Why Dylan Grice's Commodities "Pair Trade" Is Irrelevant During Times Of Central Planning And Failed Market Efficiency

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 02/06/2011 - 15:40 | 939097 Cpl Hicks
Cpl Hicks's picture

"the only two ways to acquire wealth are to make it through honest work, or, once someone else has made it, to take it thence by dishonesty and force."

Oh, really? How about getting lucky at the slot machine or with a lottery ticket? You can marry it or inherit it. You could have been one of the early employees of Microsoft (a FYIFV 'club' member).

Sun, 02/06/2011 - 15:59 | 939127 gmrpeabody
gmrpeabody's picture

"can marry it or inherit it"

They would fall under the second category.

Sun, 02/06/2011 - 20:15 | 939254 slewie the pi-rat
slewie the pi-rat's picture

the e4 has some hot licks.

w/ the run on the banx, we're steamin in!

duh.  what else does our mil. shine it's brass for, anymore? corrigan seems incorrigible,  sounds like he may hava bit o the blarney pumpin, which may at least partly explain his ability to see straight.  ty, T.

be pretty cool if, in solidarity w/ the people of egypt, we cld get a few big gunners to cash out, along with the small fries fryer chefs,  tomorrow morning.  don't even buy the puts. just get out, go to ground, and hang out. following TD, here, hang w/ the PM's (don't sell yer money for green stamps).YouTube - Meet Asmaa Mahfouz and the vlog that Helped Spark the Revolution (fr. a blindman)

get out now, and avoid the rush. we're talkin 2 vigs for the egyptian peeps, and maybe a re-entry point you can live with, if there's anything left, by wed.  unwind.  relax.  take a few days off w/ yer family.

share their ankhst! peace.

Sun, 02/06/2011 - 19:20 | 939278 slewie the pi-rat
slewie the pi-rat's picture

you could gives the banks a little kiss, too:  ya might wanna visit an ATM near you during halftime, if ya can still navigate, or just while out if not into the stupor bowl, and let rocky (not the squirrel, ok, peabody?) know how yer feelin. whose money is it?  seems like the banksters might  have some kinda bowel blockage and maybe justa little drano would  be just the tick-ette...  i have TWO accounts, one w/ a little over $10, the other? $2+++.  NB:  do not take ALL the green stamps out, b/c the shitheads will automatically close the acoount for you, if you doodoo.

hoi, hoi, hoi polloi!

fractional fractal fracture?


Sun, 02/06/2011 - 17:59 | 939333 Quinvarius
Quinvarius's picture

casino overhead

Sun, 02/06/2011 - 18:39 | 939353 slewie the pi-rat
slewie the pi-rat's picture

there is no substitute for luck, Corporal;  ya certainly got that right.

keep yer head down and don't be a hero;  if ya hafta advance to the rear, di di mau!

Sun, 02/06/2011 - 21:09 | 939586 mynhair
mynhair's picture

Ala, (I served in Vietnam) Kerry.

Sun, 02/06/2011 - 21:41 | 939630 slewie the pi-rat
slewie the pi-rat's picture

most of the heroes in DC volunteered.  i was drafted, and decided to go, after a chat about it with my mother.  kafka-esque experiences; a few nightmares and sweats afterwards, but i never filed for any disabilities, and threw my medals in the fuking sewer, along w/ about a miilion other men who likewise marched.  assuming hicks is on active duty, i hope you don't mind me encouraging him to make it home in one piece too much...

Sun, 02/06/2011 - 16:09 | 939139 blind squirrel
blind squirrel's picture

I often think the same thing about people trading on technicals today.  Doesn't technical trading sort of assume a free market and people looking to make profit and/or protect principal.  The fed's inexorable buying regardless of looming losses kind of makes support and resistance levels meaningless.

Sun, 02/06/2011 - 16:20 | 939155 Dismal Scientist
Dismal Scientist's picture

Not owning commodities, in all their various forms, constitutes financial suicide. Never mind the nonsense about 'shorting human ingenuity', that is strictly for the intellectual masturbators.

Sun, 02/06/2011 - 17:39 | 939297 slewie the pi-rat
slewie the pi-rat's picture

cash talks, bullshit walks.  be advised.

0'course the PM's are gonna hafta be settled in green stamps pdq, anyhow.

i think i'm gonna CUM!!!!


Sun, 02/06/2011 - 16:24 | 939167 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

"Freedom!" -- Mel Gibson as William Wallace on the rack.

Zhongguo markets have neither been free nor transparent for quite some time (Decades?).

Meiguo markets have neither been free nor transparent for quite some time. Wishful thinking says since 2007. Probably at least since 2001.

Sun, 02/06/2011 - 16:40 | 939198 BernankeHasHemo...
BernankeHasHemorrhoids's picture

Bernanke is a criminal who should be swinging from a light pole.

Mon, 02/07/2011 - 17:00 | 941387 Panafrican Funk...
Panafrican Funktron Robot's picture

Yeah, lost a bit going short at a litte under Dow 10K, went long at 10.8 and have been riding it since.  So frickin' retarded, this market.  What can you do though.

Sun, 02/06/2011 - 17:41 | 939300 OptionsHedge
OptionsHedge's picture

The assumption that the markets were ever efficient is a hole for Alice in Wonderland.

Sun, 02/06/2011 - 18:43 | 939334 slewie the pi-rat
slewie the pi-rat's picture

YouTube - Down the Rabbit Hole

the doorknob may have been one of corrigan's progenitors...


Sun, 02/06/2011 - 19:24 | 939344 slewie the pi-rat
slewie the pi-rat's picture

you look like you might have an i for detail, OH.

doncha think butterfly straddles are pretty?

Sun, 02/06/2011 - 19:33 | 939468 KickIce
KickIce's picture

When you see that government is running society into the ground you do it for personal insurance.  To think that if another is incapable or refuses to come to this realization it is MY fault is beyond stupidity.

Sun, 02/06/2011 - 20:32 | 939532 slewie the pi-rat
slewie the pi-rat's picture

no doubt, you are entitled to your insurance.  i am incapable.  too poor.  i have a few things.  insurance is not one of them.  i like silver (physical---a few coins).  and peace.  and for children to eat.

stupid is what stupid does, sir.   1 or 2 outa three ain't good.  just one man's opinion.  you are most welcome to yours, also.  peace.

Sun, 02/06/2011 - 21:06 | 939584 mynhair
mynhair's picture

The true dictum is that 'to be long commodities is to be short human ingenuity but also to be long political stupidity and avarice.'

More truer words have never been spoken.  BTFD!

Sun, 02/06/2011 - 21:13 | 939592 mynhair
mynhair's picture

Ron Paul to the Bernank: What part of "I will not monetize the debt". was a lie?

The "I"?

Sun, 02/06/2011 - 22:04 | 939648 slewie the pi-rat
slewie the pi-rat's picture

ah, the time decay of 'options'...  the sure, steady heartbeat of the Faustian Fallacy.......................................................................................................................................................

Mon, 02/07/2011 - 06:25 | 940100 tom
tom's picture

Since gold is fundamentally an ornament, the only way that innovation could affect its value would be if someone invented new ways to find or extract it (this has happened historically, especially with the invention of cross-Atlantic travel, but seems well pretty exhausted now), or if some newly invented ornaments supplanted demand for gold (which, although new ornaments are constantly being invented, seems never to have happened in many thousands of years of human history).

Besides, innovation is too slow of a process to interfere much with the usually short-term bets on supply/demand of raw materials that people make when they say they are "long commodities".

Mon, 02/07/2011 - 16:59 | 941382 epwpixieq-1
epwpixieq-1's picture

"to be 'long commodities is to be short human ingenuity'."

to be 'long commodities is to be short in human stupidity'.

“Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe.”  · Albert Einstein

Mon, 02/07/2011 - 17:05 | 941404 Panafrican Funk...
Panafrican Funktron Robot's picture

The trick in the commodity space is to be long on that which supports human ingenuity (rare earths), AND the commodities that act as a counterbalance to our more destructive impulses (precious metals).  It definitely doesn't have to be an either/or situation here. 

Mon, 02/07/2011 - 17:09 | 941417 Panafrican Funk...
Panafrican Funktron Robot's picture

Another point I felt was missed was the reality that the near-universal commodity run up is basically just a way of shorting paper currency as a whole.  As human ingenuity (of the productive kind) is actually protected by hedging against human ingenuity (of the destructive kind), I see this activity as being humanity-positive overall.  Yes, I do realize that real people are being systematically killed as a result of the price increase in essential commodities such as rice, I in no way place the blame on the folks buying the commodities, but rather the folks pushing the paper currency policy that forces the commodity buys. 

Tue, 06/07/2011 - 10:22 | 1346457 gall batter
gall batter's picture


Do NOT follow this link or you will be banned from the site!