Where's Santa? Stocks Are Tanking As Dollar Goes Into Freefall

EURUSD just topped 1.20...



As the dollar index continues its post-Christmas Day collapse...



US equity markets are also getting hammered...



Okienomics Dr. Engali Fri, 12/29/2017 - 11:48 Permalink

Not entirely jesting, Doc.  I have a long portfolio of companies that make real things and have a long track record of paying dividends slightly less than their net income (and some REITs that pay less than total FFO), and a I supplement those positions with periodic selling of covered calls for a pretty nice overall yield.  Given, as you say, the rigged market, I'm keenly aware that SPY puts are a losing proposition... until they're not.  Consequently, I direct a very small portion of my yield to buying far out-of-the-money puts on SPY.  For example, right now SPY is trading at 267.  Seven 2/8/18 232.50 puts cost $115; that's a lot of cheap leverage.  Will we enter a bear market between now and the end of January?  Probably not, and if not, great, my portfolio is in fine shape.  But if we do, my VERY CHEAP puts will offset some of the losses.  Insurance is what you buy expecting to never use.  I jest about those puts being worth a fortune because the ZH headline is totally misleading.

In reply to by Dr. Engali

PitBullsRule Fri, 12/29/2017 - 11:09 Permalink

I have, at my finger tips, a powerful tool, called Yahoo Finance.

And with this tool, I can tell you, stocks are not tanking.  The DOW is down 0.15% as I type.

That makes this story Bullshit.

So if you have one story which is complete bullshit, which is easily verifiable, what does that mean about all your other stories that we can't verify?

troubadourcapital Fri, 12/29/2017 - 11:09 Permalink

People forget: the Santa Claus rally worked a lot better before 1990 than it did after 1990. That's just the statistic. This seasonality - especially post-2008 - has not been as bullish as the media makes it seem.

quasi_verbatim Fri, 12/29/2017 - 11:14 Permalink

I really,really hate this new look ZH.

First, they came for the layout and format and stuffed that up. Then, they came for the commenters and faded them to compacted small font pale grey. And you can view in any order you want as long as it's oldest first, newest last.

Tyler heard it on the mainstream.

Jtrillian Fri, 12/29/2017 - 11:22 Permalink

Santa is a fictional character used to undermine the trust that children have in their parents in order for the state to ensure their programming is successful. 

What you need to be asking is where is the PPT?  Clearly they are still on vacation.