Perhaps the dollar is finding its strength in the massive liquidations and margin calls… perhaps market participants think that the numbers coming out of the foreign markets are more bogus than our own… perhaps the markets are pricing in the implicit military threat of not accepting dollars. I’ve heard comparisons of the US to the…
The market looks poised to rocket up after an explosive weekend of *gasp* nothing. If the speed of the recent decline is any indicator, this is setting up to be one of the sharpest bear rallies in history. TBT for a bet on rising Treasury yields as the TED spread narrows.
DGP and SKF will be a nice pair if the Friday reports are poop…
We’re back to overbought, “everything is OK” levels. I sold my home builders and semiconductors this afternoon. I’m looking for another gap up and then a long steady fade all day. SKF is looking for a bounce as the volume spiked. Precious metals puked another couple points, but I think we’re 2/3’s of the way…
Home builders, Semiconductors, Biotechnology, Water and Natural Gas… a strange assortment of market leaders for the day.ITB is a home builders index and like its better known brother XHB, it has taken a beating over the last two years, down nearly 60%. After finding a low ~13.50 on January 9th, ITB has shown remarkable strength,…
DGP + SKF = Win. Buy Yen, sell real estate, here we go again… “Normal” bear market conditions have returned with dramatic under performance in banks and real estate. Gold and silver continue to rally, and the dollar is beginning to slide to more all time lows. I would like to thank the bulls for…
I’ve been so overly medicated these past few days I haven’t had the patience to write more than two sentences. All I can do is come up with half-brained t-shirt ideas like “Liquidity Crisis” underneath an empty beer mug. I’m smoking more of everything and doing less of anything, and damn it feels good to…
Booooyaaaaahhhh! I think I’m gonna quit trading equities and move into Forex (just a thought)… Sometime last week I moved everything into Yen. This has turned out to be a nothing short of perfect as the dollar fell to new lows Sunday evening. I sold my Yen as it regained strength, but then quickly jumped…
Having missed the market open by about an hour, I didn’t have to do any guess work as to the markets direction. SMN (double short basic materials) is up 6.97%, UYG (double long financials) down 4.85%, which is roughly a 2% gain on a -1.5% day. Thus, the hedge trade worked, but there was no…
In my last post I suggested a pairs trade including SKF and DGP. Since that post, DGP has fallen 3%, and SKF has risen 10%, netting a handsome 7% in the last 4 days. While I firmly believe in the soundness of the fundamental logic (a move to hard assets over paper assets due to…