Statistically, the likelihood of a crash coming on any given day is small. But that is a little like telling a turkey not to worry because the likelihood of Thanksgiving is only 1 out of 365.
"Anybody who's short - and there are a lot of smart people who are in fact heavily short - they have to run for cover, and I think it could get ugly. In our account here, we quite literally were grasping for almost anything we could to reverse our position. Covering… or actually greatly reducing… our short position in the derivatives market was the first course of action.... We’ve learned over the years that when such things occur it is better to “shoot first and ask questions later."
"In our retirement account here at TGL we have simplified our position taking in the equity market: we have only a position in derivatives on the short side, and although it is not a material position it is one-sided. We’ve cast our long positions aside. We’ve simplified; we’ve gotten smaller; but we are bearishly inclined, and we are intent upon adding to those bearishly inclined positions..."
CME Group Inc., the world’s largest exchange operator, just completed an upgrade traders said would eliminate a shortcoming that gave some participants an advantage. Under the old system, data connections that linked customers to CME -- where key products like Treasury futures and contracts tied to the Standard & Poor’s 500 Index trade -- had noticeably different speeds, opening up the potential for gaming, according to traders and other experts. Those who knew how to gain faster access could increase their odds of being first in line to trade.
Currency Headwinds continue to make billions in losses for big public companies. Make use of your stock account and utilize currency ETF and ETN options.
"Can any of the Joe Sixpacks out there who’ve invested in this Bitcoin ETF to provide us a borrow as shorting it is not currently available..."
Is Bitcoin really THAT misunderstood?
- Lacking new ideas, G7 to agree on 'go-your-own-way' approach (Reuters)
- Japan's Aso tells G7 FX stability vital, no competitive devaluations (Reuters)
- Snubbed by West, Russia rolls out red carpet for Asian leaders (Reuters)
- The Fed Has Something to Prove to Wall Street (BBG)
- Trump's Supreme Court list: all conservative, some provocative (Reuters)
- Nasdaq Raises Lawsuit Threat Over SEC’s IEX Speed-Bump Plan (WSJ)
A "technical red flag" looms according to Sven Henrich - better known to Zero Hedge readers as Northman Trader. "The technical target that I see would be 1,573 on the S&P," Henrich warns an anxious CNBC anchorette, adding that the S&P 500 must stay above the 2,025 to 2,030 range in order to keep the index from falling by nearly 500 points from current levels. "If we break below this level by the end of May, then stocks may actually indeed retest lows or break lower.."
It has been more of the same overnight, as global stocks piggybacked on the strong US close and rose despite the lack of good (or bad) macro news, propelled higher by the two usual suspects: a higher USDJPY and a even higher oil, if mostly early on in the trading session.
Less than a week after Reuters broke the story that the Department of Justice is probing HFT powerhouse Citadel, which admits it executes 35% of all trades by retail investors in U.S.-listed stocks, whether it is also frontrunning those orders (an allegation that many are convinced is a rock-solid fact) we find that billionaire Ken Griffin is not at all concerned about the outcome of the investigation on his core business model and is instead expanding. Citadel is acquiring the equity-trading operations of Citigroup’s Automated Trading Desk division, one of the pioneers of high-frequency trading.
"Quietly, but steadily, in our own account… our retirement funds here at TGL and the only money we manage but money that is really rather important to us, obviously!... we are turning bearish of equities... For the record, as of Friday’s close we are +4.3% for the year-to-date, out-performing our International Index handily and still out-performing the S&P and thus most hedge funds."