Overnight Flash Crash...

[bond_trad3r]

Whoa.

But no crash since Fed went from $45 to $90 billion in a meeting. Nothing to stop Excel Ben from calling an emergency meeting and double again to $180 billion. Yields are going to zero. Yield curve will be flatter than a pancake.

 

[ktm]

Looks like there was selling volume but nothing to hold up the futures and it just went through the floor for a few seconds.

I'm not sure the Fed holds this up (they will certainly try), but the threat of a deal should keep the wheels from coming off the market.

The real problem could be the fact that if Boehner can't get the Tea Party folks to pass something as GOP centric as the 1M+ tax increase bill, then how is he going to get support for whatever he agrees to with Obama?

If the public realizes that the sides are really very far apart (Obama's position vs. the Tea Party position) and the tea party controls House passage, then we may drop like a stone.

 

[Scataphagos]

Quote from ktm:

"... If.. the tea party controls House passage, then we may drop like a stone.

We can only hope.

 

[tradingjournals]

If the market follows the efficient market hypothesis, and taking into account the ex-dividend date, models are telling me that it is normal if SPY were to start trading between 142.03 and 142.37.

 

[tradingjournals]

Quote from tradingjournals:

If the market follows the efficient market hypothesis, and taking into account the ex-dividend date, models are telling me that it is normal if SPY were to start trading between 142.03 and 142.37.

The bottom was 142.03 + one cent.

 

[hajimow]

As I said last night, buy TZA. It can go to $17 in 2 weeks.

FYI: TZA is 3 times bearish Russel 2000. Russel 2000 is way overvalued compared to S&P. It should drop harder than market.

As I write this TZA is up to 13.89. If you look at its chart, it has enormous room to go up if market keeps dropping. I believe market will continue to drop after a hesitation even after a deal is reached.

 

[tradingjournals]

Quote from hajimow:

As I said last night, buy TZA. It can go to $17 in 2 weeks.

FYI: TZA is 3 times bearish Russel 2000. Russel 2000 is way overvalued compared to S&P. It should drop harder than market.

As I write this TZA is up to 13.89. If you look at its chart, it has enormous room to go up if market keeps dropping. I believe market will continue to drop after a hesitation even after a deal is reached.

Is there a similar one for nasdaq-100? Which do you think would be weaker IWM or QQQ?

What is the cost of the leverage in TZA? Do they leverage via puts?

 

[iceman1]

Quote from hajimow:

As I said last night, buy TZA. It can go to $17 in 2 weeks.

FYI: TZA is 3 times bearish Russel 2000. Russel 2000 is way overvalued compared to S&P. It should drop harder than market.

As I write this TZA is up to 13.89. If you look at its chart, it has enormous room to go up if market keeps dropping. I believe market will continue to drop after a hesitation even after a deal is reached.

\\

Do you guarantee it?

I see it going higher into the New Year! Am I crazy?

 

[hajimow]

Quote from iceman1:

\\

Do you guarantee it?

I see it going higher into the New Year! Am I crazy?

I cannot guarantee it but the way I have been trading I am up 32% in my IRA YTD and 117% in my trading account.

 

[hajimow]

Quote from tradingjournals:

Is there a similar one for nasdaq-100? Which do you think would be weaker IWM or QQQ?

What is the cost of the leverage in TZA? Do they leverage via puts?

I believe TZA is architected based on future PUTs of RUT. You can get more info online. IWM has been very strong recently so I expect more pullback once the market starts to falter.