Today's action should answer any questions on the argument.
The feds will do any and all things to avoid deflation. Higher inflation here we come. Do not let today's action throw you off. See March 8 post. XLF ran wild today.
Just typical games at the feds. If it is you or I that made bad investments, too bad. But if you are Citibank, then bail them out at our expense.
Never was and never will be a level playing field. Understanding this helps you to make serious money off these moronic moves. Keep your head down because the last thing owners of these bad stocks want to hear is how well you are doing. Bragging it up will just be asking for more regulations.
History repeats itself, just not exactly. Anyone that traded in the 70's can smell a similar stench. Same games, just different players.
Subscribe to:
Post Comments (Atom)
2 comments:
Great call on the xlf! You are right as always Dell.
You called this whole market decline a year ago.
Speaking of games any comments on our friend "Mr. Clean" Spitzer and wall street regulations?
What do you think of a calendar spread on chk...it's ceo is adding to is 31 million shares...
The SEC has no prosecution authority. I know what a joke huh? The agency used to watch over the security industry cannot take swindlers to court. That is why certain states have more abuses. New York has the pockets to prosecute for crimes and therefore many look to New York to do this.
Do not look for any regulations to help this problem, because the fox guarding the hen house is not letting that happen. Instead look for rediculous changes like yesterday.
I doubt many even understand (or care) what happened yesterday.
The federal reserve basically is allowing all junk mortgages that investment houses and banks are holding to use as collateral for an extended 28 days for a repay instead of the typical over night.
So holders of these toxic junk can roll them off their books just in time for reporting season making those toxic notes magically disappear and become treasuries instead.
Earnings should look good and another round for the good old boys.
As traders we see this and wait for the masses to once again bid up these names and then we short.
Very simple if you are paying attention.
CHK while an excellent choice, I would like to see some correction in the energies. Too much too fast for my tastes. I do have an XLF diagonal that has taken off. So I am with you, just waiting for another great entry point.
Post a Comment