Wednesday, January 13, 2010
Daimler, Commissions and Bankers
The chart of Daimler ticker DAI (daily view above) shows a steep decline that commenced in mid October and was accompanied by heavy volume. Since early November when the decline was arrested the stop has been slugging and slogging higher and looks to be rolling over.
I am punting 1 unit short of DAI here at $52.33 with a stop at $54.81
Are you catching any of the dog and pony show, errr excuse me, I meant the FCIC (Financial Crisis Inquiry Commission) hearing with the bankers today on Nirvanavision? Nice to see these leading lights of American capitalism and ingenuity set us all straight. How much you wanna bet that if they (GS, JPM, MS et. al) were all wiped off the face of the earth, plenty of companies would still be able to raise capital and access markets, at much cheaper rates given the expensive middle man now being removed from the equation along with his vig?
Yeah, I know. That's far too sophomoric, juvenile, and simplistic an explanation as things are much complex and sophisticated in real world global capital markets. This has to be true, just ask the manager of that fund in your 401k/IRA account who bought Wall St.'s cyanide laced, alphabet soup, PIK , toggle crap not worth the paper it was printed on bonds for your retirement account. But don't take my word for it, make sure you run it by a Harvard MBA for a more detailed, cerebral assessment.
While on the topic of commissions like the FCIC, maybe Lord Blankfein and his rocket scientist minions over at Goldman can conjure up a product so I may get long political commissions. Actually a double or triple long would be great Lloyd. I mean, so long as you're continuing to do God's work and all.
Is it just me or is their (the bankers testifying) verbal diarrhea just beyond pathetic. I just love when they offer their opinions and why the heck are they even speaking without orange jumpsuits and leg irons on?
Here are a couple of outrageous and novel concepts I would like you to consider. Let's say we convene a panel of local, community bankers who:
a) DIDN'T lever up 40, 50 and 60:1,
b) DIDN'T aid, abet and foster mortgage fraud,
c) DIDN'T package NINJA loans into toxic packages for investors blowing up their institutions in the process and lastly,
d) KNEW the loan applicant, verified his/her statements and held and holds the loan on the books, and..... hang on now, I'm not done..... marked to market! (i know this last one is truly amazing in its complexity)
How about we convene a panel of idiot bloggers - who saw this whole thing coming and yet to this very day continued to be ignored by Washington and marginalized by the mainstream media - for some real answers.
Hah ! Never in a million years. Why? Cause then the indictments would have come raining down and that is simply intolerable.
Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $12.06
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $6.05
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $8.49
Long 1 unit Ultrashort Real Estate ticker SRS @ $9.82
Long 1 unit Direxion Tech 3X Bear ticker TYP @ $10.68
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $21.97
Short 1 unit Daimler ticker DAI @ $52.23 stop @ $54.81