Thursday, October 23, 2008

Attraction Points

29.34 28.84 28.03 27.02 qqqq
31.45 31.95 32.76 33.77

866.91 852.41 828.83 799.63 es
928.10 942.60 966.09 995.38

873 861 840 815 spx
926 938 958 984

96.851 96.591 96.168 95.645 jpy
97.948 98.208 98.629 99.155

702.6696.7 687.0 675.0 xau
721.8 727.8 737.4 749.4

Subject: Forest Gump Explains the Mortgage Mess, Presented By Dear Rick This is the best explanation I've heard. Not sure what it says about me to require a Forest Gump explanation to understand this mess… Mortgage Backed Securities are like boxes of chocolates. Criminals on Wall Street stole a few chocolates from the boxes and replaced them with turds. Their criminal buddies at Standard & Poor rated these boxes AAA Investment Grade chocolates. These boxes were then sold all over the world to investors. Eventually somebody bites into a turd and discovers the crime. Suddenly nobody trusts American chocolates anymore worldwide.Hank Paulson now wants the American taxpayers to buy up and hold all these boxes of turd-infested chocolates for $700 billion dollars until the market for turds returns to normal. Meanwhile, Hank's buddies, the Wall Street criminals who stole all the good chocolates are not being investigated, arrested, or indicted.Mama always said: 'Sniff the chocolates first, Forrest'.Quote of the day from a fund manager:'This is worse than a divorce... I've lost half of my net worth and I still have my wife..'

36 comments:

Vin said...

Morning, Boris.

The APs are so wide today; interesting times.

I'm immensely amused by the popularity of this triangle leading to doom. If enough people believe in it, could it become reality? Ha! Thanks for the objective data points. :)

boris said...

Dear Vin,
Wide, is due to the volatility, part of the claculations Dear VIn,

I turst only numbers. Belive me I have seen a lot. Including working for JPM and others on wall street.

But I trust only numbers. I am calm as long as I blieve in what will happen. Willing to navigate, but must follow the core beliefs.

If I listen all that is written I will be dead or mad house. I do not. I have thrown all media out of my room and try to feed only on what is essential. Leanred that from reading between the lines in OLD USSR. There they gave you so little info. In USA they give you so much , the head spins.

Well, I have an advantage of learning both methods.

I trust only numbers. Not people. Never do I turst anybody, including myself. ONly the numbers I produce.

I belive in destiny. ANd numbers tell them.

Bug I am very flexible if it seems not to work temporarily or otherwise

Good Trading

boris said...

Dear Subscribers, Readers
Good Chance closing higher today, but need to survive the 13:00PM

Good Trading

boris said...

Dear Subscriber, Reader
I hope I do not have to stress this again. Watch that the JPY does not give up this base it is building now around 97 area.

Good Trading

boris said...

Dear Investor toss in another 2% into the stock market, if not sure, make it the total market, otherwise do it in the stocks I recommended before ( aggregaes and MLPS and etc). That would bring us back to 38% in stocks

Good Trading

tim9lives said...

You are correct Boris,,,,in the USA,,,they give us so much info,,,on purpose,,,to confuse us.
It is like Pavlov's dog,,,,they turn off the lights,,,and ring the bell,,,because they want us to salivate for the feeding(bell),,,at the same time they wants us to shiver with fear(darkness).
They know what they are doing for sure.
They have trained the sheople- Tim

boris said...

Dear Tim,
I do not like to compare anybody to dog, but I am afraid this is exactly how they treat us.

GOod Trading

D said...

What about the guy that divorced his wife and lost half of half...

I know a couple of those that didn't listen to me.

sharon said...

Dear Boris

Did you see the Shekel today - from 3.92 to 3.77 in one day - wow! speculators work hard today.

boris said...

Dear Sharon,
Yes, Did see.
What you have is what I said. This is a

MAD MAD MAD world, and remember I first saw this movie, I was still in USSR. Hallelujah!

Little did I know, that I will be living it in 2008!(:-

I warned the entire world that SOPITALISTS will make the world so volatile, we will be begging them to stop...

Some of us are, I am afraid

Good Tradnig

sharon said...

thanx Boris

I hope I see the shekel in 4.x till the end of the year.

Sharon

boris said...

Dear Readers,
Do you know what time is it?
Yes, 13:00 ET is upon us, the time to survive

Good Trading

Vin said...

Sage advice, Boris. One cannot hope to surpass by following blindly.

Is surviving equivalent to avoiding utter destruction? I am impressed that none of the lower APs for SPX have been hit yet, but I might be speaking too soon...

boris said...

Dear Vin, Readers,

YOu are witnessing the harassment by powers, they want, dream you to be out now. they use every tactic to screw, you. Just keep you cool and stop handy and watch, this storm may clear within next 35 minutes, or you want to be out.
Because they may decide there is too much dead weight on this shuttle to take off.
Good Trading

daveo said...

GE is cratering......new 52 wk low.

Vin said...

What a shake out... volume seems tame, though.

boris said...

Dear Readers,
The time window for the storm to pass is just about to pass out and any more YEN attack will not be good for this market.

Investors should stay with 38% investment. Traders, should not take much risk here, another 15-20 points on YEN could be damaging

GOod Trading

Vin said...

Hm. Yen is taking its time confirming the updraft.

boris said...

If Yen dost not stop here, we are sliding under 95
GOod Trading

boris said...

Dear Dave,
Thanks for GE reporting
Good Trading

jl said...

any thots on taking a small long qqqq position in here Boris???
jeffrey

boris said...

There is some chance of YEN stopp at 95.90, but need to be fast, if you trade.
Not suggesting anthing just giving you a point, dynmic one generated inside day
GOod Trading

boris said...

Bounced from that point 95.90 exactly
GOod Trading
Remember there is low of FEBRUARY around 95.76
GOod Trading

boris said...

Dear Readers, very good bounce so far. Excellent bounce point.
Will it survive?

Good Trading

D said...

march 1 low on the usd/jpy was 95.7 and we just made it to 95.92...

closed that gap and hopefully those are blue skies in front of us.

boris said...

Dear Jeffrey,
That was the idea for giving all of you the JPY point.

If you wanted it was there to dod it.

Good Trading

Vin said...

Excellent call on the JPY. Thanks, Boris.

boris said...

Did not I say be fast.

Well,
Need to be fast(:-

Good Trading

boris said...

we have bounce 60 points in 56 inutes . not bad

Good Trading

boris said...

Sorry 65 ponts in 7 minutes now

Good Trading
ENJOY.

I said be fast(:-

Again, Need to be fast(:-

boris said...

Incredible 110 point turn around in JPY in 1 hour and Stock market 30 SPX point turn. and close positive.

INCREDIBLE! that is all I can say

Good Trading

John said...

Boris,

Your best guess_ could this have been the bottom or close?

I bought a little more of SDY and got a great price.

thanx

old john

boris said...

Dear John,
Good For you.
I still can not be sure. It could certainly be the bottom. But there will be a retest in a longer run, if it is November/December or even January/February, who knows. YBR certainly thinks so , right?

YOu know that, you see it there.

Even if it is the bottom, we will retest it somehow.

Good Trading

John said...

Boris,

Thanx, looking at that retirement account.

Another question- Have you ever looked at PFF which is the ETF for preferred shares. The dividend is outstanding but maybe too much so.

old john
Great call today, I made some coffee money and bought SDY

boris said...

Dear John,
I have recommended at one point.
I think it was PFL,
I will look at PFF, but I would suggest that that you take a look at LQD also, these are supposed to be bonds of the "better" companies of USA.

GOod Trading

boris said...

Dear John,
I have recommended at one point.
I think it was PFL,
I will look at PFF, but I would suggest that that you take a look at LQD also, these are supposed to be bonds of the "better" companies of USA.

ADDITION, Of course, the littel worse of those can be found in something like VANGUARD, higher grade JUNK BONDS, BB and better,
VWEHX

GOod Trading.

Have you also looked at VFIIX, this is GNMA's for income. It is great. If it goes down a bit in principle, do you really care? If it gives you 5+ % for next 30 years?
NOW REMEMBER GNMA's are totally GOV GUARANTEED ( INTEREST AND PRINCIPLE)!!!(:-

GOod Trading