Trading Archive

Initial JPM thoughts

First, while this loss is a one time adjustment to capital, the use of this type of ‘trading’ as a profit center is probably a thing of the past. Additionally, my guess is the whale has been liquidating a long oil position (and maybe paying on long bma ratios) for the last ...Read More

Psychopaths On Wall Street

I’d guess closer to 100%. ;) The Shocking Statistic About Psychopaths On Wall Street By Sam Ro February 28 — The March/April issue of the CFA Magazine has a fascinating article titled “The Financial Psychopath Next Door.” A shocking statistic jumped out at us. From the article: Studies conducted by Canadian forensic ...Read More

Armo trader post

Interview link here ...Read More

Volatility article in Markets Media

Thanks to Will Thompson. I got a nice mention here explaining how tail hedging can cause the kind of volatility we are now seeing, much like the crash of 1987: Volatility: An Asset Class or Quick Buck? Posted on August 8, 2011 The CBOE Volatility Index, commonly referred to as the market’s ...Read More

a word on tail hedging

Just realized there’s been enormous institutional tail hedging I forgot about as per the elevated vol skews from out of the money option buying that that triggers accelerating selling as price falls. Much like the 1987 crash. Should have picked this dynamic up sooner but that kind of unstable equilibrium can’t be ...Read More

Zoellick Sees ‘Elephant,’ Not Endorsing Gold Standard

Back pedaling from yesterday’s remarks, but just getting the fish hook in deeper. Gold is a non financial asset,not an ‘alternative monetary asset’ Starting to look like the QE fairy dust is wearing off. The dollar selling was the focus of the ‘risk on’ hysteria, and it looks like the dollar may ...Read More

cross currents

I wasn’t sure whether to send this, as it reveals my lack of clarity on current events, but decided to send it to make the point. Here’s what I see: Markets are already discounting a large QE and are also discounting that QE actually makes a difference: The dollar went down Gold ...Read More

State of the Hedge Fund Industry Conference – Sept 14 – NYC

State of the Hedge Fund Industry September 14, 2010, 1pm-5pm followed by cocktail reception New York City Join us as distinguished experts from the hedge fund industry speak candidly about the biggest issues affecting managers today. Speakers will discuss challenges and opportunities in a post-financial crisis world, including the new—more difficult—capital raising ...Read More

updates

Markets are getting closer to the idea that: Interest rates don’t/won’t help QE doesn’t/won’t help With the larger point being coming to terms with the possibility the Fed can’t inflate, or do much of anything that actually matters for the real economy, except maybe fund zombie entities to keep them from failing. ...Read More

UN calling trade deficit a privilege

[Skip to the end] Interesting! At least a small sign of the world beginning to figure it all out. >    >   The United Nations called on Tuesday for a new global reserve currency to end dollar >   supremacy which has allowed the United States the “privilege” of building a huge trade >   deficit. >    UN ...Read More