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That sums things up for today. The day-to-day volatility remains just way too high. You put your toe in the water and you lose your entire leg. So you must be patient unless you're day trading. The latter has been the venue and style of choice that can produce results. Most investors don't have the time or fortitude to deal with markets on that basis.

The Treasury auctions continue. While bonds are getting sold, the results in the aftermarket for them haven't been good. There are more bonds to be sold than you can shake a stick at which is why many want to short.

There are just two more trading days in the month and it's hard to imagine we'll close the month flat or even higher. But, we've witnessed some powerful bear market rallies since the bear first made its appearance.

Let's see what happens.

Disclaimer: Among other issues the ETF Digest maintains positions in IEF, TLT, TBT, GLD, GDX and FXE.

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    The Author wrote:

    "The Treasury auctions continue. While bonds are getting sold, the results in the aftermarket for them haven't been good. There are more bonds to be sold than you can shake a stick at which is why many want to short."

    Indeed. The rest of the world has woken up to the fact that America is bankrupt in every sense of the word. Can't really blame them for that.

    China is on a buying spree in an attempt to unload their $2T reserves before the dollar collapses or is seriously devalued.

    Few outside America are buying America's bull anymore. Sooner rather than later no one will.
    Feb 26 05:40 AM | Link | Reply
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    are you shorting the Euro and USTBS at the same time and long in gold? Dont blame you for that, but are you sure that gold remains strong in recessions? There is 17% growth in recycled gold according to World Gold Council. Thanks Mr. Fry
    Feb 26 07:32 AM | Link | Reply
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    I'm not sure about anything!
    Feb 26 08:09 AM | Link | Reply
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    <<Indeed. The rest of the world has woken up to the fact that America is bankrupt in every sense of the word. Can't really blame them for that.>>

    Agreed.

    The rest of the world is starting to understand that letting 5% of the worlds total population (The USA) account for most of world consumption and progress is a deadly mistake that cannot, and will not be repeated. Though it is going to take time (I mean years not months) as that time going on, the billions of people in other countries are going to start making, consuming, and developing their OWN economies, their OWN consumption, and OWN finance, and generating their OWN self sustaining economies going forward.

    I have no idea how this plays out, and yes for now, China and the US are very much linked to closely. However as the years go on, you are going to see China "quietly" de-coupling from the reliance on the U.S.

    Based on the rhetoric we have seen and heard from other countries around the world, the U.S. is no longer in good standing in the eyes of other nations. Remember, though some nations such as the U.K. Ireland, Iceland, etc, are basket cases in their own right, the majority of the world is suffering for one reason and one reason alone: The garbage that was sold to them by U.S. investment banks, our govt, and our other banks.

    When this is said and done the rest of the world is going to remember that, no question about it.

    Feb 26 08:40 AM | Link | Reply
  •  
    Right now volatility is so high and market movements so unpredicable, that long short pairs trading is one of the few ways to make money. Taking a one-way position in financial, for example, is a big gamble right now. I'm taking positions long and short, and selling the first one to show a reasonable profit, then waiting for the other to come back and go into profit. Using 2x and 3x leverage ups the anti and is hairy, but I need the adrenaline!
    Feb 26 09:08 AM | Link | Reply
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    Too risky. Have you backtested? Long+short, over time, is a losers bet with most ETFs.


    On Feb 26 09:08 AM AndrewBaker wrote:

    > Right now volatility is so high and market movements so unpredicable,
    > that long short pairs trading is one of the few ways to make money.
    > Taking a one-way position in financial, for example, is a big gamble
    > right now. I'm taking positions long and short, and selling the first
    > one to show a reasonable profit, then waiting for the other to come
    > back and go into profit. Using 2x and 3x leverage ups the anti and
    > is hairy, but I need the adrenaline!
    Feb 26 11:24 PM | Link | Reply
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    I use the greater leverage for the direction I think is the immediate one, then have a few days - if I still want to stay in - for a reversal to pay off the other way. Provided I'm more often right than wrong, it works. It's a gambling strategy which gives me a buzz as much as a trading technique. Agreed maybe only for a few adrenaline junkies!


    On Feb 26 11:24 PM a believer wrote:

    > Too risky. Have you backtested? Long+short, over time, is a losers
    > bet with most ETFs.
    Mar 04 03:25 PM | Link | Reply
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    s
    Jun 23 02:00 AM | Link | Reply
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