Market Neutral Deleveraging Pain Acute AgainSubmitted by Tyler Durden on 06/02/2010 21:12 +0300
On May 3 we noted that the HSKAX has posted a massive drop and that this was indicative of substantial deleveraging within the market neutral population, noting that "Market Neutral players are getting carted out feet first as liquidity is now totally gone and 100k SPY blocks move the market. M/Ns are deleveraging massively as the index hits lows not seen since mid-2008." Some took this observation very personally and said this is indicative of nothing. Three days later the Dow dropped 1,000 points. It is time to point out the HSKAX chart once again, which has just dropped to a fresh two year low. The traditional liquidity provider deleveraging continues, and only the 2 man crews with 2 i920 CPUs are left to add limit orders. Until, of course, they decide to not do that anymore, just like they did a month ago.
2. The FED caught in the act - since they could not bailout Lehman they now feel free to bailout anyone else who is a close friend of any masonic club or any other greek alphabet gang bang buddies.
Submitted by Tyler Durden on 06/04/2010 21:24 +0300