THE DOT - if this turns orange or red be alert

Friday, June 4, 2010

Brainstorming Friday

1. Well thats how fast you get screwed if you do not know anything about astrology - markets dropped 3.5% and took away all weekly profits. The SPX closed even on the lowest level in 6 months almost only on Feb 8th we closed lower at 1056 difference is this is the first 5 weeks in a row down market in 14 months - I guess you get where I am getting to - we closed exactly at the 2 support lines which hold up last week at the low but this time we are rather heading to break below as I had written its only a matter of 2 weeks to do so. Heading for the next target 1000-25 SPX short term.


Market Neutral Deleveraging Pain Acute Again

Tyler Durden's picture

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.


Brief Update On Tishman Speyer's Fed "Rescue" Conflict Of Interest new

Earlier we reported that the Fed is now in the business of bailing out real estate companies, specifically Tishman Speyer. Little did we realize we are about to have another Stephen Friedman moment on our hands. It may, but probably won't, come as a surprise, that Jerry Speyer is on the Board of Directors of the very same Fed that approved the restructuring of his firm's loans in Chicago. We are confident Jerry recused himself of any deliberations that used taxpayer money to provide his firm with a couple hundred million in immediate funding. We just wonder if Tishman Speyer is also considering converting to a Bank Holding Company and accessing the Fed's Discount Window: after all, what's a few hundred billion in taxpayer capital between conflicted CEOs-slash-directors of companies that have no business in getting indulgences from the Fed? Oh yes, that would be just another example of the now perfectly accepted, legal and encouraged concept of conflict of interest, "less than arm's-length" dealings between kleptocrats and middle class money.

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