Dear Readers, I could be wrong here again, but here is what I think the secret market turmoil last 5 weeks and especially last two days is....
It is the massive dumping of stocks buy foreigners to buy the Treasuries. That is the only way you get the Stocks Collapsing and $ rising... That is why I asked you to watch the YEN/JPY, cause that is where the dumping is going on... in YEN leveraged carry-trade investments!
Good Trading
N r2k 759.60 - 787.00
O GLD 65.66 - 66.92
O QQQQ 49.95 - 50.39
O ECA 64.54 - 65.66
N SPX 1414.00 - 1464.32
O TSX 14114.38 - 13906.11
12:29 ET , EVIL SISTERS ON THE RUN, Wicked Witch Of The East - JPY up/down 150 Pts!!!!!!I told you this morning, Wanted To See/Feel manipulation, this was it BROTHERS
Jim Taylor, JD said...
Hi Boris, HI JD....(BORIS)
Bounce off Support Cluster:
13054
2501
1435.5
ENDS at 0:9:45 PDT
Jim
19 comments:
New learner here. Like all of the comments and am learning a lot. Why would foreigners buy the dollar and not someother safehaven product like gold?
Dear Bob,
They would buy GOLD, of course, they must have, or we would not be up today. The thing is first they must scare current owners. Somebody must sell/lose for others to win.
I think people like the Treasury at this point.
$ and Gold for these reasons may go up together, novel thinking ha...
Dear BOB, welcome to our house.
And very good Trading to you.
R2K went green! wonder where this strength is coming from?
Dear Chrnoictown, Strength is coming from the secret. Foreigers dumping US stocks. Which stocks do they own?
NOT RUT stocks...
I will add your name to our thank you list
Good Trading
Hi Boris,
My trigger finger in itching, and I feel I need to buy... not just yet???
Thanks for your insight.
Good For you Dear HOPPER.
Good Trading
If we fill the gap and hold - BUY, if we fill and fail - SELL. I think we fail, next buy late Tuesday/early Wednesday. IMMHO.
The FED is pouring in liquidity to keep this pig flying.
Dear Sqroot, Good INFO. Good Trading Dear SQROOT.
Hi Boris,
Bounce off Support Cluster:
13054
2501
1435.5
ENDS at 0:9:45 PDT
Jim
I thought the following was amusing
John B
Author unknown.......kind of clever
Investment Dealers are excited to announce the newest structured finance product - Constant Obligation Leveraged Originated Structured Oscillating Money Bridged Asset Guarantees, or COLOSTOMY BAGS. Designed to accommodate the most sophisticated investment strategies, Colostomy Bags contain the equity tranches of Structured High Interest Taxable Derivatives, or SH IT, and are leveraged an infinite amount of times through the innovative use of derivatives.
"Its an actively managed, unlimited liability, open ended investment with no maturity date, which pays LIBOR plus 5,000 and has no correlation to traditional investments" said a spokesman for the Investment Dealer who engineered the product. "It's based on a CDO structure, but it's designed to default BEFORE the first coupon payment, which you'll agree has no correlation with stodgy traditional investments and is a perfect fit for portable alpha scams, er, strategies." Following the default, each month more leverage is added to the structure to pay for the coupon and the Dealer's fees which are set at 80%. "We feel the fees are reasonable, given the adrenaline rush you'll get each month attempting to mark these."
The Colostomy Bags carry a AAAA rating, based on the rating agencies opinion that they are even safer than Treasuries. "You can't use traditional credit analysis to value these babies, no sir-ree" said a spokesman for a rating agency. "Just like Icelandic Banks, we give them the highest rating because you just know that the Fed will bail out all the hedgies who buy these things..remember like Long Term Capital? And the best part is, the beauty of this structure is that the loss given default is NEGATIVE, so by extension we feel that the CDS will trade through Treasuries."
Inhaling deeply on a fatty, he continued "We've been tinkering with our model, which served us well for Enron and the Telecoms in '02, and our stress testing shows that the probability of loss in the senior tranche is close to zero." The model, constructed of a wishing well, Joseph Jett's trading blotter, and drawings of Unicorns then collapsed in a heap. "Well, back to the drawing board!" he cackled.
A real money investor, huddled on the windowsill outside his office, said he remained optimistic about holding the Colostomy Bags but was a bit concerned with the 95% decline in value on the first day they traded. "We've taken a bit of a haircut on these but I'm waiting to see the first servicer report, which should arrive in a few months. At first I was annoyed that the dealer who sold them to me refused to make a market in them, but that makes my job easier since I'm not tempted to sell."
We located a hedge fund manager at a due diligence meeting in the VIP room at Score's. He said he was skeptical of the structure at first but was dared into buying it by a fixed income salesman. "He said to me, 'what's wrong with you, its quadruple A rated, just buy it, what are you a pu ssy?' He also said it was going into 'an index', although he didn't say which one, but I felt that I had to buy it. And that was good enough for me, bro'."
Dear John, Billarious!
Good Trading
Dear Boris,
For a beginning investor like me, this week’s stock market serves to evoke nothing less than fear and anxiety. Amidst the tumult, I appreciate your taking out the time to acknowledge our humanity and to evoke those who individually gather here daily as “family.”
Yes, Boris your Blog is a family: I value the many distinct voices that you have brought together daily to try and understand what the hell is going in today’s topsy-turvy world of global capitalism, how to sift through the hype, how to determine truth from lies. Thank you again, Stan
Boris,
UBS claimed a few days ago in one of their morning updates that USDJPY 117 is the line in the sand for the Japanes retail forex traders.
Meaning I suppose that under that level on a sustained basis, and they will bail en masse from the carry trade.
They did not give any support for this claim.
I can see the C-wave crash possibility, even feel it coming in my bones - which usually means it ain't gonna happen, at least not the obvious way.
However, a modest number of suitable option straddle/strangle positions, especially ones just happening to hedge existing long positions, might be appropriate, even for the long term buy & hold investor.
Regards,
(Been offline a few days because of computer crash, possibly symbolic?)
Dear Stan,
What people learn here would hav been a BOON for me, if I had it when I started as an investor.
Enjoy it and thanks to all for expressing their opinions.
I , for my part, must wear multiple hats serving community of different needs, but truely, Investor, a little guy, is my best focus. For them my heart goes out.
Thanks for being here and have a nice weekend.
Good Trading.
Switching some of my short funds into precious metals here.
waiting for rut to come down a little here to dump shorts
after this is done Ill keep about 10% short--15% pm's--15% UNG--the rest for trading and cash
hope natural gas keeps going here
Good Ideas , Dear Cobbense, thanks
Good Trading
Dear Boris,
outstanding community on this stormy sea!
Just for the record:
USDJPY 117.1650 5:51pmET
Are we crashing into the "sand"?
Very best rgrds
Istvan
Dear Istvan, As I suggested, likelyhood of us making the high in YEN today is very high.
I think it will go lower for now and will let the markets alone to go hihger for a while.
I am adding your name to our list of charaters their Istvan. I do not know how could I forget your name, but yes, I need a good sleep to restore my brain.
GOod Trading Dear Istvan.
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