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Nosebleed Trading Session Update: How I Fared During One Of The Most Volatile Trading Sessions In Market History

Reggie Middleton's picture




 

Yesterday was a rough, tumultuous ride. I went from supreme confidence to getting bloodied up. If you remember, the BoomBustBlog traders recommended a grab for profits or a gamma hedge. I decided to go all in to FIRE sector short risk, with just a wide trailing stop to protect me. I was quite comfortable up to the last 40 minutes of the session, wherein it seems as if Bernanke's floor traders swept in to teach smart asses such as my self a valuable lesson. Fortunately, CBs can only affect the markets, they can't control them. All short biased positions flourishing today as that French bank run that I promised looks to be coming to fruition and that 830% One Week Armageddon Trade moves right along... From my Twitter feed:

ReggieMiddleton: Load Up On Bank Puts? Futile Attempt To Make Insolvent Look Solvent By Interefering With Markets, Short Ban Has Started http://bit.ly/plfrwl


ReggieMiddletonReggieMiddleton:All wide trailing stops are still in place, allowing me (barring a violent gap up) a guaranteed 300% on the SPX, although it was 800%.


ReggieMiddletonReggieMiddleton: Nearly all of them are better traders than I, but instead of selling vol, I'm buying further up the ladder of risk at cheaper prices.

Update, my OTM cheaply bid puts are being hit. I'm getting deeper in the [short risk]  game. I will offer mini-reports on the companies in question soon

I went against the grain of both the consens and even the BoomBustBlog traders and loaded up on shorts in lieu of selling off profit and/or hedging. It was a bloody ride, and I was [mentally/emotionally] wiped after the Fed's intervention during the last 40 minutes of trading. Many of my FIRE sector and French bank positions were actually stopped out by the bell, making it difficult to even maintain a position with a semblance of risk management. I actually felt bad... You know regret, even though I moved wtih both the fundamentals and my gut. The following morning, my bold contrarian move was vindicated and we march on.

Time To Load Up On Bank Puts? The Futile…

Time To Load Up On Bank Puts? The Futile Attempt To Make The Insolvent Appear Solvent By Interefering With Market Pricing - Short Ban Has Started

Let's see hear... It didn't work during the last market crash. Actually, I don't think there was ever a time when it DID work. Nevertheless, let's try it anyway. You can't sell insolvent companies short! As anticipated last week in our post Didn't Anyone Notice The Seemingly Irreparable Damage To The Eurozone Last Week? Global Short Ban, Here We Come!...

The 830% One Week Armageddon Trade Comme…

The 830% One Week Armageddon Trade Commentary: Tuesday, 8-9-2011, Continuing The Easily Seen Market Crash?

A timely tidbit from one of contributing BoomBustBlog traders, Eurocalypse, basically an extension of what was expoused last week in Timely Trading Tips For 8/5/2011,which I excerpt: I deeply hope your readers and yourself have benefited from the options strategies, market has been so quick; I dont know if it could be published in time. ...I'd recommend to take partial profits....

Armageddon Put Trade Up Over 500% For Th…

Armageddon Put Trade Up Over 500% For The Week, More Room To Go And More Trades To Set Up!

As those who have been reading me for a while know, I have been crowing about sovereing debt default leading to a European bank collapse, causing global contagion for some time. For those who haven't, reference last years posts in the Pan-Europan Sovereign Debt Crisisseries, or The Anatomy Of A European Bank Run: Look At The Banking Situation BEFORE The Run...

 

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Thu, 08/11/2011 - 13:55 | 1551501 janus
janus's picture

it is easy to grin/

when your ship comes in/

and you've go the stock market beat/

but the man worth while/

is the man who can smile/

when his pants are too tight in the seat,

janus

Thu, 08/11/2011 - 10:43 | 1550816 Alexander Supertramp
Alexander Supertramp's picture

 

"Telling someone that you can’t beat the market is like telling a six-year old that Santa Claus doesn’t exist."  —Burton Malkiel, Princeton University professor and author of A Random Walk Down Wall Street

 

Thu, 08/11/2011 - 10:44 | 1550810 Alexander Supertramp
Alexander Supertramp's picture

 


"Odds are you don't know what the odds are." —Gary Belsky & Thomas Gilovich, Lessons From The New Science Of Behavioral Economics

 

Thu, 08/11/2011 - 10:02 | 1550635 g
g's picture

Have to respect the Reggie.

Thu, 08/11/2011 - 08:17 | 1550220 seabiscuit
seabiscuit's picture

Reggie,

 

Precious few admit when they are wrong, yet you freely admit it. Fantastic work.

You rock!

Thu, 08/11/2011 - 06:59 | 1550062 Portugal
Portugal's picture

Reggie... Its me again...Your Antipod...

Never understood your fixation with European Banks. Have you really looked over to US Banks results ( Bofa, GS, JP, ... ) or to other "European" ones (RBS, Lloyds, ...) to whom these last ones will resort when the attack on the GBP begins?

Do you really compare European banks with others? How many waivers GS for an instance got from accounting and supervisory boards juts to continue operating today ?  You’ll find the answer right here in ZH Archive...

 

Thu, 08/11/2011 - 00:57 | 1549889 chumbawamba
chumbawamba's picture

Reggie puts up.  He gets my respect.

I am Chumbawamba.

Thu, 08/11/2011 - 00:24 | 1549841 High Plains Drifter
High Plains Drifter's picture

http://newsbusters.org/blogs/noel-sheppard/2011/08/10/rick-santelli-stri...

merdith whitney calls tea party a bunch of out of work angry white guys, she pissed me off with this shit.....

Thu, 08/11/2011 - 09:10 | 1550367 paint it red ca...
paint it red call it hell's picture

you get your allies where you find them, the objective being create a movement to overwhelm the NWO deception. my enemies enemy is my friend, call it organic growth.

Thu, 08/11/2011 - 00:09 | 1549819 janus
janus's picture

Reginald!

It is your friend janus return to hip-hip, etc.  You'll be seein alot more of me in the very near, and after that as a matter of fact.  Janus, you see, he's startin to fancy himself a trader...i'm about to sign up to practice on the ole CME site (i like commodities right now; i mean, here in the south it's something you tend to consider now and again)...i''m practicin practicin as it stands...and, truth be told, havin quite a bit of success -- understand that i'm very shy and am reticent to pat myself on the back, but this kind of preformance merits a bit of strutin...like i'm cock of the walk. 

Seems to me they turn on a spigot of money round about five on sunday, and all you've got to do is be nimble and clever and above all WISE enough to learn when to dip the ole cup in and fill her till she runneth over.  i got a big cup...just look at me.

Champagne Wishes, etc.,

Janus

Wed, 08/10/2011 - 19:52 | 1549126 zorba THE GREEK
zorba THE GREEK's picture

I believe silver will be trade of the decade.

Wed, 08/10/2011 - 19:20 | 1549003 disabledvet
disabledvet's picture

again "the put is gold." all the rest is worthless. the call...if you are interested is silver. "the silent metal."

Wed, 08/10/2011 - 19:06 | 1548943 cocoablini
cocoablini's picture

FED does this to guys like you Reggie because it forces you to cover your shorts and turbocharge the buys or makes you skittish to bet against the system.

Wed, 08/10/2011 - 15:21 | 1547679 LynRobison
LynRobison's picture

Reggie, you have my utmost respect.

Wed, 08/10/2011 - 14:56 | 1547545 Zero Govt
Zero Govt's picture

Excellent work Reggie

i'm subscribing shortly just got a little (major) issue to sort next week with a Eurobank!!

Wed, 08/10/2011 - 14:39 | 1547527 MrBoompi
MrBoompi's picture

"wherein it seems as if Bernanke's floor traders swept in to teach smart asses such as my self a valuable lesson."

LOL Reggie.  This is exactly how it seems most of the time.  Especially with silver....

Wed, 08/10/2011 - 14:35 | 1547513 hotkarlandthecl...
hotkarlandtheclevelandsteamers's picture

Man even a 20% correction could not get your apple puts back in the money.

Wed, 08/10/2011 - 14:35 | 1547510 stormsailor
stormsailor's picture

I PUT ON AN /ES SHORT 20 AT 1146, SET MY STOP AT 1150 AND 1100.  LEFT MY OFFICE FOR A COUPLE OF HOURS.

 

MERRY CHRISTMAS

Wed, 08/10/2011 - 13:51 | 1547349 Zer0henge
Zer0henge's picture

You should probably be under inpatient treatment...

Wed, 08/10/2011 - 13:48 | 1547331 Mises
Mises's picture

Scoop up any FSG?

Wed, 08/10/2011 - 13:48 | 1547330 Slap That Taco
Slap That Taco's picture

Mark Faber says that shorting the 30 will be the short of the century.

Can someone please give me the specific time and date, I'm having fits trying to do this trade.

 

Thank you,

God.

 

Wed, 08/10/2011 - 19:29 | 1549033 IQ 145
IQ 145's picture

You need a Commodities Futures Trading Account. You can read up on the contract details and etc. on the CME home site. The long Bond Contract is just called US Treasury Bond on CME. It's akward because it's a short term contract and you have to keep rolling it over. I agree with him theoretically; but I doubt if it's the best individual speculator's play. We're all speculators; that's the first thing you want to get clear. The sales pitch for options sounds too good to be true; and sure enough it is. A straightforward futures contract is much better. The one thing I would advise is to close the stock market account and forget about the alphabet soup; (ETF's).

Wed, 08/10/2011 - 21:43 | 1549530 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Just read a good article in the Wall Street Journal.  Hillary made $100,000 in cattle futures that way!

Tuco Benedicto Pacifico Juan Maria Ramirez

Wed, 08/10/2011 - 15:04 | 1547622 Slim
Slim's picture

They've been saying this for years.  Be very careful because in a low growth uncertain environment, those who need income or a match against long-liabilities may eventually extend duration and this will stay low forever and long-bonds work for many institutions against their liability stream.  This is not non-typical of a credit blow up and what happens afterward.  Fed will also manipulate rates against you if they have to.  This bet needs a strengthening economy and solid recovery to work beyond some vol in a trading range.

People may piss on US fiat but the reality is that just like gold, you know you'll get something back (who knows what but you store some value) from the world's reserve currency backed by the world's biggest military (and if you don't, your gold won't help you anyway).  I don't know what the real rate of return will be but it's the primary world market, there's no substitute, and all central banks have a vested interest in it continuing for some time or at least long enough to smooth transitioning and get out of this globally linked mess.  I would make a long rates bet somewhere else or wait until you get the time/date burned in a stone tablet direct from God.

2 cents anyway.  Playing long-bond rates in this environment without nimble trading expertise and heavy macro/central bank links is playing with fire.

Thu, 08/11/2011 - 09:53 | 1550589 fajensen
fajensen's picture

the world's biggest military

The world's most Bloated millitary, IMO, even supposedly active soldiers look more like the bloody Michelin Man on 'Roids!

It is a cruel joke on the taxpayers - for every jihaddi killed (when they actaully hit the right house and all) a lifetime worth of taxes from hundreds of working Americans is spent. While on the opposition side, the total outlay is maybe a few thousand dollars, easily paid by the foreign aid given to Pakistan.

Wed, 08/10/2011 - 21:31 | 1549493 Slap That Taco
Slap That Taco's picture

Thanks a lot, makes good sense.

Wed, 08/10/2011 - 14:56 | 1547594 ReactionToClose...
ReactionToClosedMinds's picture

didn't Pimco's Gross coin that phrase .. and he could not time it right?

wonder if a certain competitor to Pimco is helping the stability 'team'

 

Wed, 08/10/2011 - 14:26 | 1547470 There is No Spoon
There is No Spoon's picture

bidding on tlt puts now, build the position over time don't try and time anything exactly

Wed, 08/10/2011 - 13:44 | 1547309 moneymutt
moneymutt's picture

I was thinking you were fine, as you had said to get out Tues am....dramatic times....

Wed, 08/10/2011 - 13:38 | 1547285 the not so migh...
the not so mighty maximiza's picture

Reggies Rated Junk ...prooved correct!!!!!

Wed, 08/10/2011 - 13:30 | 1547256 DarkStarDog
DarkStarDog's picture

Good for you Reggie !  Nice work

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