Oil beginning to threaten SIFs

If this action around 1175 SPX turns out not to be capitulation, I say with grave concern that the GS prediction of 1100 SPX is probably correct.

The pain would be intense, and several hedge fund blowouts would be next in line. VIX would be well above 40.

nitro
 
I stronly recommend you buy little puts to protect yourself. This could be catastrophic.

You MUST be long vol. Don't look at VIX and think it is too high. Impossible to hedge short gamma in equities since SEC rule, so firms using SPX vol to "sell" [buy SPX vol] against their equity positions.

nitro
 
The basis point spread on Morgan Stanley is exploding:

"MS Morgan Stanley debt protection costs surge to 895 bps, were 796 bps earlier, according to trader - Reuters (19.09 -9.61) -Update-" briefing.com
 
Well, when the world says, no mas, some may be thinking, go long Rothschild style.

I would be very careful if you are a trader. If you are an investor and can take two or three months of losses, these prices are "blood in the street" prices.

Take from that what you will.

nitro
 
I don't get the statement by Mack at MS.

Ok, lets get the facts straight:

1) He has good 1/4
2) Fundamentals are sound
3) He has plenty of cash on hand
4) This is the fault of the short sellers according to him.

May I make one slight suggestion? USE THAT CASH ON HAND TO SQUEEZE THE SHORT SELLERS OUT THEN. If he is right, he will torch them. Put your $ where your mouth is.

STOP THE BULLSHIT!

:mad: nitro :mad:
 
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