Kudos to MMs

MMs sold tons of vola yesterday, and today they lowered the vola, either as a result of demand for protection, or otherwise. That is obvious - just look at the % decline in VIX given the move in SIFs. They are massively defending the downside. That could backfire.

nitro
 
Bearish continuation flag forming SPX. Unless something breaks this pattern, pattern odds are 80 delta we go lower to at best sideways short term [days]

nitro
 
This rally on Friday and the this morning overnight gains are based on the $500B China stimulus package.

SIFs were lead higher on inside information of this. You can tell by analyzing what equities participated in the rally, and what lagged. For example, look at commodity stocks, and then look at financials. No wonder the rally made no sense [at least to me - I had no idea that China announced that until today]. Oh well, part of the game, but no less annoying.

GM CDS trading as if bankruptcy imminent. If you are a holder of the common, rush for the exit.

AIG a bottomless pit of disaster.

I don't know here. I don't like long with the GM problem hanging over markets head.

nitro
 
Imo 900 SPX retest imminent. When, I don't know. Perhaps not in the ultra-short term, but in the next couple of days? 90 delta.

GM has to go go zero to be able to get out of the union mess, renegotiate terms and restructure itself. No other way around it. BTW, if you are long the GM puts, it may rally 200% from say .50 to $1.50. Don't be a pig.

nitro
 
C probably going to $7.50. GS is probably going to $50. MS to $10.0. NQ is very sensitive to these stocks, and the message is clear.

If UUP goes above 26.50 cleanly, 900 SPX a done deal, and then it is a matter of where we land.

nitro
 
All the previous mentioned stocks are going bankrupt. Greed is no good at all. We were all not satisfied with regular profits and now we end up with bankruptcies. When will GS get a lifeline?
 
Quote from GEBAKK:

All the previous mentioned stocks are going bankrupt. Greed is no good at all. We were all not satisfied with regular profits and now we end up with bankruptcies. When will GS get a lifeline?
More...
ZERO delta they go bankrupt. GS and MS are untouchables. C may have more downside to go, but it is not in dire straights.

All these companies have to figure out how to make $ in a de-leveraged environment.

nitro
 
You must log in or register to reply here.
Back
Top