Yesterday against my long PCU and FCX positions which I sold upside calls on also for may. Materials seem a bit overbought here so I needed a hedge, hope this does it. I have a tight stop in though in case this gets blown out.
Yes the big gains so for the last month have been in financials and will be for the rest of the year. Its sad the same banks and CEO's that fleeced America. Along with the rating agencies that said all is great. I think I am going to throw up.
RVing is fun. I'm betting on the ultra bank and reits, SSO, etc for year end. The industry lobbyists apparently convinced the SEC chairwoman not to include sellside book runners not to include pre borrowing of shares to be shorted. This would creat too much transparency on the issue of naked short counterfeiting. Pre-borrowing of shares would have removed the scantily clad strategy of simply locating shares to be shorted. By counterfeiting stocks/shares, this allows for hedge fund "liquidity" of typically low volume issues. My take is chairwoman Shapiro is relying on self regulatory none abusive book running manipulation.
Professor Nouriel Roubini, also dubbed Doctor Doom, said he sees improvement in the US economy but still sees the US economy registering negative 2 percent by the end of 2009 with about 1% to 2% GDP for 2010. I think Roubini is still upset that the government didn't nationalize some of the big banks.
Will be watching them close. CNBC hype may hurt them. Darn I took ELP off watch $9 a couple months ago would of been a great entry. It is a utility co. in Brazil. Put it on watch or scale in.JMHO Do DD
Leaving sat. to go RVing for a week.
China's huge stimulus package relative to their GDP should provide a significant boost to their local economy. Many US economists have been pushing China to focus less on an export economy and more on local consumer consumption. To be honest, I don't have any clue on these short term moves in the markets here but I'm holding significant cash no matter what.
I'm not buying anything but bare essentials and even if stocks rally to new heights, I'll sell into it.
I may even cut back on monthly stock contributions from my wife's salaries soon. If these professionals can't get a grip on their nonsense, I may even shut down all contributions and close out most accounts, leaving perhaps only 2 or 3.
The stock market pulled away gamblers from the horse racing industry and there's a battle between loyyists from the stock market and pro-ponents of internet gambling. Heck, the stock market is already legalized internet gambling in the US. If sell side bookies can issue ficticious shares legally in the stock market, there is no difference in crooks counterfeiting currency in their basements.
Basically SMN and UYM (SKF&UYG, etc) diverged for an extended period of time and they should be in the process of converging as the spread shrinks between the counter-parts.
My it tight. These ultra shorts and their counter parts are trending down together. One should be trending up and the other down but both having significant spreads but sloping down, suggest to me Proshares ETFs are just trading leveraged tools for intraday moves and to employ bookies.