Here Comes The Herd: "Highly Volatile Trading Conditions Expected Ahead"

Tyler Durden's picture


Last night we presented a very disturbing warning from one FX broker, Oanda, on what Sunday's election could mean for FX trading on Sunday (nothing good). And, as often happens in such instances, the idea has now been "incepted" - look for every FX brokerage to follow suit, likely followed by the plain vanilla exchanges to issue comparable warnings ahead of Monday.

From FXDD:


And for a suddenly very appropriate primer on herd dynamics we recommend the following article from Spiegel.

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 06/14/2012 - 14:21 | 2526499 Cognitive Dissonance
Cognitive Dissonance's picture

Snagglepuss - "Exit stage right."

(In fact it doesn't matter where you go as long as you get away from ground zero.)

Thu, 06/14/2012 - 14:22 | 2526507 WALLST8MY8BALL
WALLST8MY8BALL's picture

Heavens to Murgatroyd!

Thu, 06/14/2012 - 14:24 | 2526518 Pladizow
Pladizow's picture

If a Gov was thinking about it, this weekend would be a good time to officially devalue.

Thu, 06/14/2012 - 14:26 | 2526534 SilverTree
SilverTree's picture

Just sitck your finger in a dike.

Thu, 06/14/2012 - 14:47 | 2526647 knukles
knukles's picture

Add funds to your account....
What could go wrong?

Thu, 06/14/2012 - 14:50 | 2526664 Cognitive Dissonance
Cognitive Dissonance's picture

E V E R Y T H I N G!


Thu, 06/14/2012 - 14:53 | 2526672 JohnG
JohnG's picture's gone.

Thu, 06/14/2012 - 15:12 | 2526759 Troll Magnet
Troll Magnet's picture

seriously, what the fuck is up with greece? the rothchilds couldn't force them to use diebold or what?

Thu, 06/14/2012 - 16:36 | 2527156 Sudden Debt
Sudden Debt's picture

Adding funds....

Being closed out from your account...

Get a penny per grand in compensations....

Thu, 06/14/2012 - 14:48 | 2526650 BLACK_DOG
BLACK_DOG's picture

I did, she slapped me!

Thu, 06/14/2012 - 15:04 | 2526712 noses
noses's picture

Idiot. These weren't your fingers, it was your nose.

Thu, 06/14/2012 - 16:01 | 2527037 macholatte
Thu, 06/14/2012 - 14:27 | 2526543 Ahmeexnal
Ahmeexnal's picture

Ahhh....another rig operating out of templar owned Malta.
What could they possibly know that the sheeple watching euro2012 soccer tourney don't (and in most likelyhood will never care to know)?

Thu, 06/14/2012 - 14:50 | 2526661 knukles
knukles's picture

Wasn't that where Gene Saladin had that hole in one?

Thu, 06/14/2012 - 21:08 | 2527847 WmMcK
WmMcK's picture

Gene Sarazen - double eagle - 1935 Augusta?
Or is that one too many slippages?

Thu, 06/14/2012 - 14:26 | 2526524 Vincent Vega
Vincent Vega's picture

CD & WS8M8B, You guys are showing your age (and mine). Thanks for the laugh.

Thu, 06/14/2012 - 14:34 | 2526577 Cognitive Dissonance
Cognitive Dissonance's picture

Glad to be of service. We old pharts need to stick together.

Can't wait to move into my kid's basement after they cut my SS stipend. :)

Thu, 06/14/2012 - 14:35 | 2526584 Divided States ...
Divided States of America's picture

If these arent huge flashing warning signals beaming right in front of you, then you deserve to lose all your money.

Thu, 06/14/2012 - 14:38 | 2526599 Cognitive Dissonance
Cognitive Dissonance's picture

Hence my advice (above) to "Exit stage right".

Thu, 06/14/2012 - 16:34 | 2527147 Carl Spackler
Carl Spackler's picture

"after they cut my SS stipend"

CG, at least you're getting something - anything - from SS.

When I was in college in the 1980's, the economic textbooks proclaimed that I would pay 7 units in to receive one unit back in benefits from the Social Security fund, while the "Baby Boomers"(i.e., the greediest generation) got 7 units back for each unit they paid in.

Looks more like I should expect to receive $0.00 with SS on a path to going bust.




Thu, 06/14/2012 - 14:40 | 2526613 financial apoca...
financial apocalyptic contagion's picture

The markets are so fucked up

Trading limitations are imposed but we can still "share" this amazing announcement on fuckberg and shitter

Thu, 06/14/2012 - 14:44 | 2526637 UP Forester
UP Forester's picture

You must mean financial markets.

The Farmers Markets in the area are going gangbusters.

Will let you know when the biggest one IPOs, 'cuz they actually serve a useful purpose....

Thu, 06/14/2012 - 16:51 | 2526691 financial apoca...
financial apocalyptic contagion's picture


Thu, 06/14/2012 - 14:29 | 2526512 AlaricBalth
AlaricBalth's picture

Oh never mind.

Thu, 06/14/2012 - 14:26 | 2526533 Dr. Engali
Dr. Engali's picture

Your age is showing CD.

Thu, 06/14/2012 - 14:31 | 2526562 Cognitive Dissonance
Cognitive Dissonance's picture

Old phart and proud of it.

That is also why I try to include reference links. So the young em's can keep up. :)

Thu, 06/14/2012 - 14:40 | 2526604 Dr. Richard Head
Dr. Richard Head's picture

Back in my day we didn't have cartoons.  We used to dress up our cats and pull their tales for entertainment. 

Hell, back in my day we had silver money.  I remember when I was a young man I could buy a hooker for a silver dime.  Those were the days.

Thu, 06/14/2012 - 14:59 | 2526694 El Oregonian
El Oregonian's picture

Yea, and you probably had to spend a $20.00 Gold Walking Liberty coin for medicines to clean it up the diseases... 10 cent hookers?

Thu, 06/14/2012 - 15:51 | 2526983 Pairadimes
Pairadimes's picture

Give it a few short years, and that silver dime will once again be all you need.

Thu, 06/14/2012 - 14:40 | 2526610 Dr. Engali
Dr. Engali's picture

They don't know what they are missing with some of those old politically incorrect cartoons.  Ahh good times ;->

Thu, 06/14/2012 - 14:44 | 2526636 BLACK_DOG
BLACK_DOG's picture

roast is rear !

(old phart too)

Thu, 06/14/2012 - 14:49 | 2526660 Michael
Michael's picture

Sometimes with age goes extended knowledge and wisdom.

Magoo's Surprise Party

Thu, 06/14/2012 - 21:29 | 2527904 Meatballs
Meatballs's picture

El Kabong!

Thu, 06/14/2012 - 21:48 | 2527961 Buck Johnson
Buck Johnson's picture

The market should be bloody tomorrow, if not the PPT is working overtime to keep it up.

Thu, 06/14/2012 - 14:23 | 2526504 Spitzer
Spitzer's picture

CNBS "How to Euro proof your portfolio"

Euro low is in.

Time for the dollar to eat dirt

Thu, 06/14/2012 - 14:25 | 2526521 Dr. Engali
Dr. Engali's picture

I tend to agree with you. There are way too many shorts on the Euro now......unless they cover going into the weekend. Then it should be interesting.

Thu, 06/14/2012 - 16:11 | 2527071 xtop23
xtop23's picture

Agreed. I went short USD a tad early. Hanging onto my position though.

Thu, 06/14/2012 - 14:23 | 2526510 HoofHearted
HoofHearted's picture

So, are they saying..."You're all dumb money and are going to get this all wrong. Get out while we can still use your cash as margin for us to lever up on some prop bets."

Thu, 06/14/2012 - 14:36 | 2526589 Matt
Matt's picture

Or they don't want to take losses for other people's bad bets. If someone is at 100:1 leverage and there is a 2 percent move when markets reopen, wouldn't the FX trading service lose the difference between the clients' assets and the money owed? Even if the client has some cash reserves in case of margin calls, if it is not enough, the rest of the loss would be taken by the service, right?

Thu, 06/14/2012 - 14:26 | 2526515 Yen Cross
Yen Cross's picture

 I'm going to "Wally World" , after I get my haircut tomorrow morning. The auto pilot is set.

Thu, 06/14/2012 - 14:26 | 2526530 lolmao500
lolmao500's picture

Volatility : money.

Thu, 06/14/2012 - 14:26 | 2526531 rumblefish
rumblefish's picture

so if the greece leaves the euro --> euro stornger? --> Dollar falls? -- > Dow +350?

Thu, 06/14/2012 - 14:27 | 2526545 lolmao500
lolmao500's picture

The markets are so insane, this is probably what's gonna happen... anyway, the longer Greece stays in the euro, the worst it will be. Them leaving quickly will be the ``best`` scenario...

Thu, 06/14/2012 - 14:30 | 2526553 geewhiz190
geewhiz190's picture

what if the election has no winner ? do they vote again? and again?  this is the most widely advertised potentaily volatile event since y2k.

Thu, 06/14/2012 - 14:46 | 2526645 Matt
Matt's picture

If the election has no winner or somehow New Democracy forms a coalition, EUR could surge and the massive losses could be to the shorts. It could go either way, so best to get out of the pool. 

Someone will probably have to govern with a minority or coalition, you can't just keep having election do-overs in perpetuity.

Thu, 06/14/2012 - 14:54 | 2526674 MarsInScorpio
MarsInScorpio's picture

Yes you can.


This isn't NFL football where you go to a different system if the game is still tied after two attempts to score.


Thu, 06/14/2012 - 15:06 | 2526718 ThirdWorldDude
ThirdWorldDude's picture

In Europe we have (penalty) shoot-outs if the game's a draw after extra-time...

Thu, 06/14/2012 - 15:21 | 2526832 walküre
walküre's picture

Now that would be cool. Have the candidates draw duelling pistols in the wee hours of the morning after.

Thu, 06/14/2012 - 16:50 | 2527190 Carl Spackler
Carl Spackler's picture

3rd World Dude...yours is a true statement, and it reminds me of an old Monty Python's Flying Circus episode in which the Greek philosophers (i.e., Socrates, Plato, Archimedes, among others, in their togas) were playing againt the Germans (Marx, Nietzsche, et al.) in a football match.

The comedy was genius...Socrates just stood at mid-field walking around aimlessly and pondering!  I seem to recall that the match ended in a draw.  Found the link...

Something tells me such is a microcosm of what the world should expect out of the European Union this weekend ! 

Thu, 06/14/2012 - 14:59 | 2526696 sunaJ
sunaJ's picture

Oh reeeeeeeeally?



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