Monday, November 8, 2010

The Beat Goes On

Took a few days off with some friends for golf school and gotta say enjoyed it very much. 

Lots happening in the markets which really doesn't require much analysis per say. Actually any type of analysis at this juncture appears to be a waste of mental capital. 

As was any rational analysis back in 1999 was proven fruitless so it is today as well. The David Tepper school of trading seems to be in full force at the moment until it isn't anymore. Don't worry, as I am sure there will be plenty of life vests for all when need be.

That said, I happened to catch an interesting piece off Bloomberg regarding our current 'state' of affairs. The title of the piece, ECB Rejects Request For Greek Swap Files, Citing 'Acute' Risks, should tell you all you need to know. 

According to the article: piece: 

The European Central Bank refused to disclose internal documents showing how Greece used derivatives to hide its government debt because of the “acute” risk of roiling markets, President Jean-Claude Trichet said.

“The information contained in the two documents would undermine the public confidence as regards the effective conduct of economic policy,” Trichet wrote in an Oct. 21 letter in which he rejected the appeal.

Hang on now. The story is incomplete.WE need an enabler.

 The government now says the swaps, some of which were arranged by Goldman Sachs Group may have caused “long-term damage” for taxpayers.

Ahhh there we go. Fitting to see Goldman at the scene. Would you expect anyone less?

Shocked by any of this?  
Do you even care? 

I also happened to catch the story about Unicredit and it's debt collection scam.

"It seems that Erie, Pennsylvania debt collection agency Unicredit not only set up a fake courtroom, complete with phony judge, with which to bamboozle and intimidate, but it dressed up employees like sheriff’s deputies to “serve” faked court papers on consumers."

One great big ponzi game. Charades for grown ups.

Anyone care?  Is anyone sober?

This is all so fitting for a this delusional make-believe world we inhabit here. 

The banks pretend the loans are good as people sit in the homes not having made a payment in 12, 18, 24 months. Pick your  number. Worthless Helocs and 2nds are held at these same banks at mark to fantasy levels. Record levels of food stamp usage, anemic job creation guaranteed QE 2 is all good, and any further bad economic numbers is good as it ensures QE 3, 4 and 5 are surely coming down the pipe.

The investment and trading thoughts of a David Tepper (or a trained seal for that matter) make so much more sense to me now. How easy it all is.

Now normally I would be going off the rails by now but as you can see I am extraordinarily calm. See I am no dummy, I may be slow but I am no dummy. I considered seeking the counsel of a yellow pages head masseuse and getting to a comfortably numb (apologies to Pink Floyd which is playing as I write) happy face via a daily dosage of Zoloft.

Instead I am content to be happy as the beat goes on.

Housekeeping notes;

On Wednesday this past week I was stopped out of :
1 unit TLT @ $99.20 for a loss of just over 1/2 a pt. 
1 unit TLT @ 98.72 for a gain of just over 6 pts.

On Thursday this past week I was stopped out of:
2 units CAT @ $81.75 for a loss of 4 pts.
1 unit AAPL @ $315.40 for a loss of 3 1/4 pts. 
1 unit UUP @ $21.94 for a loss of about 1/2 a pt.
1 unit DZZ @ $8.50 for a loss of just over a 1/2 pt.

On Friday this past week I was stopped out of:
1 unit TLT @ $98.10 for a loss of just over 2 pts.

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 U.S. Dollar Bull ticker UUP @ $22.56 stops @ $21.44

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