Monday, August 16, 2010

Couple of Items

Bonds versus Stocks

Are you catching the boobs and boobs (shills) in chairs on CNBC this morning? Is it me or is it the order of the day trying to pooh pooh the move in bonds? Do you also see them trying to talk you out of those paltry yields - nominal mind you as they never discuss real rates - in bonds and get you to move into stocks?

Do yourself a huge favor and ignore them. They know not what they speak of because their bread is buttered by an upward moving stock market. This and the fact they would sell their mothers and sisters into sex slavery for a 7 figure bonus is all you need to know about them. Govern yourself accordingly.

High Frequency Trading and Goldman

For those of you who continue to think Goldman are everywhere and always the smartest guys in the room. I bring you back to the high frequency trading (HFT) issue.

You can, like the legions of retail brokers whose survival depends on positive markets ignore this, or like the shills on CNBC prefer to simply dismiss it as unimportant and non-existent I urge you to reconsider.

This issue HUGELY important. Don't bother asking your broker about it because if he is anything like the handful I have broached the subject with locally he/she likely has a better idea of how to split atoms than grasp this issue.

If you still don't think so ask yourself why this "Goldman's Prop Desk Spin Off Hits A Wall: Bank Won't Let New Fund Take Code With It." , going on.

Ahhh, just tune in to CNBC and let them tell you it was a 'fat finger' trade again or heaven forbid it was carnys. Yes carnys or carnival workers on the loose reeking havoc with shirts that say "shit happens". Would you expect anything less from the boobs and boobs on CNBC? Of course not.

And speaking of CNBC....
over the weekend I caught a small inconsequential piece on ponzi magnate Allan Stanford, eerrr excuse I meant to say SIR Allan Stanford and it made me think of future financial TV hall of famer Carl Quintanilla. In particular his infamous, well thought out in advance, penetrating question to the former financier and now felon "What's it like to be a billionaire?" When I first mentioned this here ridiculing Quintanilla many thought I was jesting, engaging in hyperbole, until I linked the actual interview via YouTube. Anyway after reading the piece it made me want to ask Carl the question we all want to know now....."what's it like to be a complete nincompoop?"

Strayer Education

Did you catch the announcement this morning regarding Strayer Education, ticker STRA?

"Strayer Education, Inc. disclosed in a regulatory filing that the U.S. Department of Education's data and analysis released related to Strayer University are at odds with its internal analysis conducted in light of the guidance issued by the Department.

On August 13, 2010, the Department of Education released loan repayment rate data in connection with gainful employment Notice of Proposed Rulemaking.

The Arlington, Virginia-based company said it is seeking to clarify the discrepancy, which has significant operational, financial, and public policy implications."


To quote Ricky Ricardo of I love Lucy Fame ..... "Lucy, you got some 'splaining to do !!"

Of course when the dust settles no one will be held accountable anywhere anyhow, a miniscule fine will be paid with Strayer neither admitting nor denying wrongdoing and of course the management team, in particular the CEO, walking away with 7-8 figure severance packages.
I absolutely adore free market capitalism. Heads I win, tails someone else loses. Without question yet another compelling reason to be long stocks, right?


Miscellaneous

I caught a small inconsequential piece on Allan Stanford, eerrr excuse I meant to say SIR Allan Stanford and it made me think of future financial TV hall of famer Carl Quintanilla's infamous penetrating question "What's it like to be a billionaire?" When I first mentioned this piece many thought I was jesting, engaging in hyperbole until I linked the actual interview via YouTube. Anyway after reading the piece it made me want to ask Carl the question we all want to know, "What's it like to be nincompoop?"



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".


Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.50

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