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Muppet Murder: Goldman's "Top #6 Trade Reco For 2015" Crushed, Stopped Out After 16.5% Loss In One Day
It's a one-two for the muppet mauling masters at Goldman Sachs, who first crucified anyone who listened to the Buy Best Buy reco from Tuesday, and now, those who put their money into Top Trade #6 for 2015 by the Goldman uber traders, which was to Short CFH/SEK - obviously on margin - just got crucified after the unlevered pair just crashed 16.5%, stopping out those who listened to Goldman and sold CHFSEK to Goldman's prop, pardon flow, traders, and leading to a complete loss on margin, unless of course one has an infinite balance sheet.
From Goldman's Robin Brooks, who is not quite Tom Stolper yet, but is slowly getting there.
Trade Update: Closing our Top Trade Recommendation #6: Short CHF/SEK as SNB removes minimum exchange rate
We close our Top Trade recommendation to be short CHF/SEK, opened at 7.70 on November 20, for a potential loss of 16.5% including carry, following the SNB’s removal of the EUR/CHF minimum exchange rate of 1.20. At the same time, the SNB cut rates further into negative territory to ?0.75%. EUR/CHF touched a low of 0.86 before recovering to around 1.02 at the time of writing.
The SNB’s surprise decision to abandon the floor today was linked in the press release to diminished overvaluation of the Swiss Franc. Our own measure of fair value for EUR/CHF (GSDEER) suggests that fair value has fallen from around 1.44 in 2010 to around 1.40 currently. As such, while the overvaluation of the Swiss Franc may have been diminishing, this effect looks to have been relatively small on our estimates, not least given the sharp appreciation of the CHF today in the wake of the announcement. Indeed, on our trade-weighted index of the Swiss Franc versus the G10 currencies, today’s strengthening in the Swiss Franc takes it above its peak value back in 2010, even factoring in the decline in EUR/$ in recent months.
Our trade recommendation was based on the idea that inflation dynamics in Sweden do not share the same structural component as those in the Euro area, and that this should ultimately be reflected in diverging monetary policy and the strengthening of the SEK vs the EUR. While this view remains intact – we continue to expect EUR/SEK lower – the implementation using the CHF on the short side was contingent on the SNB’s maintaining the floor. We close our short CHF/SEK recommendation for a potential loss of 16.5%.
Once again, one picture is worth 1000 Top Trade Recommendations:
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There are some hookers in Manhattan who will make their year this week.
Latest REUTERS News on EURO:
http://tersee.com/#!q=reuters+euro&t=text
I am sure goldman sucks wasn't short the franc in it's prop trading. That being said, i smell a huge long-term opprtunity shorting the swissie here against gold....
who is John Galt ?
Maybe I don't understand something but with a peg in place (that you think is going to stay in place) why wouldn't you just short the EUR and not have the potential for something like this to happen?
Another year, another muppet massacre.
Are there actually people that act on Goldman's reco's?
So now is the time to go long on lube, thx ZH.
Poor muppets have been pounded in the ass so many times you could drive a truck through it.
Yep, unable to rip a fart but still able to unleash a whispy fluff.
Every seller needs a buyer
Are you using the whole fist Lloyd?
They’re knee deep in it now.
I guess the head of SNB is NOT a former Goldman Sucks employee - unlike most all the others. They'll get that fixed soon enug!
It truely is NOT different this time.
Nope it's not but I'm having a schadenfreude moment.....
How can people sleep at night with open trades? I guess the same they sleep at night with their retirement accounts in safe hands.
Off topic: it would appear we have just witnessed our very own terrorist attack just now in Belgium - two dead, but these would be the jihadi terrorists. There's not much more news for the time being.
url?
http://www.krantenkoppen.be/go.php?b=lalibre&kID=166573
Sorry, this is in French - it all just happened and there's hardly any information available - from what I've understood, the police had been following three jihadi warriors who had returned from Syria and apparently they have been attacked by the police at a private home address - three dead for now.
Nothing on the scale of Paris though, it would seem.
Here comes Miss Piggy with her STAP-ON!!
Arrest Lloyd Blankfein for treason and financial terrorism
Hehe. Goldman's Sacks walks up to Kermie while in the position and says with a smirk, "Woops!"
Poor Kermie can only squeal.
Cheeky picture. It's now in the rotation for my 5 minute random desktop picture.
Tyler, please keep us informed on robbin' Robin's trade recos so we can fade accordingly. Much obliged
What will happen to Goldman traders if they get caught with Kermit the Prone as a screen saver?
Rapid advancement.
Fuck...now no one will buy my expensive home in CT.
Daily quakes continue in CT... But unfortunately it would stop anything that bankers are doing or planning.
What's ' diminished overvaluation ' mean in layman's terms , please?
I'm gonna go with "less overpriced. "
Burt and Ernie want in on the action.
but but recovery? oh wait joyflation...
frogse.cx
Are you insinuating that my good friend Lloyd LIED TO THE PEOPLE?
the best picture
Muppets IMPALED!
Anyone that still listens to these evil cocksuckers deserves to have their asses handed to them on a platter.
So Kermit's ass is somewhere off camera, on a silver platter? He does look like it is missing...
Thanks for not forgetting to add the fine print:
unless of course one has an infinite balance sheet
And the Fed thanks us all for letting it happen.
I think GS gets way too much negativity. They provide a valuable service. People who want to make money buy books and learn how investing works. People who want to lose money go to Goldman Sachs. Everybody wins. What's the problem? I personally don't understand the desire to lose money on dumb shit like extended warranties and investment advice from hair dressers, but some people love it. Who am I to say they are wrong?
You must be on the other side of some of those deals. ;-)
PULL!!!!!! KA-BUUUMMMMMMMMMMMMMM CLIENTS FACES RIP THEM OFF!!! MOFOs!!!!!!!!
Follow Goldman's trade recommendations and you, too, can have an ass like a clown's pocket.
Any goy stupid enough to do business with Goldman deserves to have their asshole occupy the territory where their buttcheeks used to be. Poor Kermit has nothing to sit on anymore.