MidCap SPDRs (MDY)

All Comments on MDY

  • commenter
    syndicat
    Oct 01 08:06 AM
    Tuesday Overview: Confusion and Caution [view article]
    If you invested $10,000 in the NASDAQ Composite index exactly 10 years ago, you have a $12 loss. Of course, you have had a lot of excitement.

    See chart titled Index Performance:
    www.invescopowershares...


    Monday the QQQQ closed at $37.82, a 1.9% premium to Net Asset Value. Very strange. I noticed this yesterday when the QQQQ was trading down 25c in the pre-market and the NASDAQ futures were up 2%. (yes, I know the QQQQ is based on another index, the NDX).
    Leading QQQQ component stocks were all higher.





    Reply
  • commenter
    Owen
    Oct 01 05:12 AM
    Tuesday Overview: Confusion and Caution [view article]
    This isn't the NYSE. There are no specialists on NASDAQ.


    On Sep 30 09:18 PM fatcat wrote:

    > Classic whipsaw in GOOG,but they took it too far...all trades were
    > busted..the specialist were under alot of pressure the last 2 days,nothing
    > would surprise me..     Reply
  • commenter
    Aalan
    Oct 01 01:56 AM
    Tuesday Overview: Confusion and Caution [view article]
    I happened to be watching the GOOG data feed when the glitch occurred. Nice and easy around 415, then suddenly 489, then 5.10 (yes, with a decimal point!) within seconds of each other. Obviously a data-feed glitch, as NASDAQ asserts, and not actual trades. The "closing" price was probably just a random point among many errors, so NASDAQ was right to scrub it from the record--otherwise your daily-close charts (and even monthly) from now until forever will be distorted. Reply
  • commenter
    thedozer
    Oct 01 12:01 AM
    Tuesday Overview: Confusion and Caution [view article]
    Years of bad decisions and stupid mistakes have created an economic nightmare in this country, but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support any congressperson who votes to implement such a policy. Instead, I submit the following three steps:

    Common Sense Plan.

    I. INSURANCE

    A. Insure the subprime bonds/mortgages with an underlying FHA-type insurance. Government-insured and backed loans would have an instant market all over the world, creating immediate and needed liquidity.

    B. In order for a company to accept the government-backed insurance, they must do two things:

    1. Rewrite any mortgage that is more than three months delinquent to a 6% fixed-rate mortgage.
    a. Roll all back payments with no late fees or legal costs into the balance. This brings homeowners current and allows them a chance to keep their homes.
    b. Cancel all prepayment penalties to encourage refinancing or the sale of the property to pay off the bad loan. In the event of foreclosure or short sale, the borrower will not be held liable for any deficit balance. FHA does this now, and that encourages mortgage companies to go the extra mile while
    working with the borrower—again limiting foreclosures and ruined lives.

    2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and executive team members as long as the company holds these government-insured bonds/mortgages. This keeps underperforming executives from being paid when they don’t do their jobs.

    C. This backstop will cost less than $50 billion—a small fraction of the current proposal.




    II. MARK TO MARKET

    A. Remove mark to market accounting rules for two years on only subprime Tier III bonds/mortgages. This keeps companies from being forced to artificially mark down bonds/mortgages below the value of the underlying mortgages and real estate.

    B. This move creates patience in the market and has an immediate stabilizing effect on failing and ailing banks—and it costs the taxpayer nothing.




    III. CAPITAL GAINS TAX

    A. Remove the capital gains tax completely. Investors will flood the real estate and stock market in search of tax-free profits, creating tremendous—and immediate—liquidity in the markets. Again, this costs the taxpayer nothing.

    B. This move will be seen as a lightning rod politically because many will say it is helping the rich. The truth is the rich will benefit, but it will be their money that stimulates the economy. This will enable all Americans to have more stable jobs and retirement investments that go up instead of down. This is not a time for envy, and it’s not a time for politics. It’s time for all of us, as Americans, to
    stand up, speak out, and fix this mess.     Reply
  • commenter
    fatcat
    Sep 30 09:18 PM
    Tuesday Overview: Confusion and Caution [view article]
    Classic whipsaw in GOOG,but they took it too far...all trades were busted..the specialist were under alot of pressure the last 2 days,nothing would surprise me.. Reply
  • commenter
    investor88
    Sep 30 09:08 PM
    Tuesday Overview: Confusion and Caution [view article]
    Excellent review as always. Couldn't agree more on a 80% cash holding stance in these uncertain times. Assuming a bailout passes the House and Senate, I suppose it may be fair to bet on market rebound for trading purposes. The question is the likely strength and duration of the bear market rebound, a day, week, month or quarter? I think any rebound is maybe a week or two. Reply
  • commenter
    tshk1221
    Sep 30 08:53 PM
    Tuesday Overview: Confusion and Caution [view article]
    Curbs-in is way correct. His charts made us confused more and more.

    Let's follow the Oracle's path, guys.     Reply
  • commenter
    4263mike
    Sep 30 08:48 PM
    Tuesday Overview: Confusion and Caution [view article]
    While reading these charts and enjoying David's obvious love of the bail out plan, I came up with a new bail out plan. Go ahead and give them their $billions but it all has to come out of re-election campaign funds instead of taxpayer dollars. Politicians love picking our pockets so see how they like it for a change! Reply
  • commenter
    Curbs-In
    Sep 30 08:28 PM
    Tuesday Overview: Confusion and Caution [view article]
    Perhaps thew most important conclusion you made from your charts and graphs:

    Many wonder why we’re carrying such heavy [over 80%] cash balances, but this type of action is the reason, combined with the fact that this is the most manipulated market in history.

     Reply
  • commenter
    4263mike
    Sep 30 09:12 AM
    Tuesday Outlook: Bailout Brouhaha [view article]
    Just got this message when I tried to contact my US Representative

    "Messaging Service Unavailable
    The House of Representatives is currently experiencing an extraordinarily high amount of email traffic. The Write Your Representative function is therefore intermittantly available. While we realize communicating to your Members of Congress is critical, we suggest attempting to do so at a later time, when demand is not so high. System engineers are working to resolve this issue and we appreciate your patience."

    AND, you want these guys to manage $700B with no strings attached (you really want to know where the &700B went, sorry due to ext ordinary demand, we stopped keeping records) and after that, run your health care (sorry, that life saving operation is temporarily unavailable) plus any other socialized program they can think of? Heaven help us if they succeed!!
    You think its just an isolated government bungle? Try buying gold coins from the US mint; sorry, we ran out.
    Reply
  • commenter
    Dr
    Divergence
    Sep 29 03:53 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Thanks. Great answer, and I agree with you. Reply
  • commenter
    Richard Shaw
    Sep 29 02:17 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Dr. Divergence:

    This is uncharted territory. Closest example may be the INP exhange traded note from Barclays that stopped issuing creation units when India temporarily stopped certain foreign investments. That went way out of wack.

    In this case the instruments used to fund the inverse fund are most likely of definite term, except for their actual stock shorts. The derivatives will expire and the fund will become less short. Until the next report, we won't know how many if any actual stock shorts they have.

    Absent actual stock shorts the fund assets will be in run-off and would eventually be all cash or government debt instruments. In a rational world, the price would approach the NAV in that case.

    The expectations for future actions by Congress would probably be key, but I have no idea what those actions would be or how the market would respond.

    Today when the bailout vote failed the SPY was off nearly 7%.

    SKF is up 18+% as of the moment with nearly 16 million volume. XLF is down 11+% with 52 million volume, so the 2x leverage is approximately working for the moment.     Reply
  • commenter
    Dr
    Divergence
    Sep 29 01:29 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Point taken, Richard. Good article. Do you have any views about the tracking error issue in SKF et al now that they are unable to issue new creation units due to the short ban? Reply
  • commenter
    Richard Shaw
    Sep 29 01:21 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Dr Divergence

    I said it "exposes" short investor to interest. That is meant to convey that interest "could" be a factor if the trade goes against the investor to create a margin call.

    The point is correct about the "potential" for interest cost, which is not a potential cost with a non-margined long position in an inverse fund.     Reply
  • commenter
    Dr
    Divergence
    Sep 29 12:58 PM
    My Website
    Short Cut to Profits? A Closer Look at Inverse Funds [view article]
    Your point #6 is factually incorrect. No interest is paid on a short sale. The sale takes place in a margin account and the short SALE generates a free credit in the account. Generally the broker will credit the short selling customer with somewhere from 50% to 70% of the interest earned on the free credit, subject to negotiation based on account size, trading frequency etc. Reply
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