Zekeko's Comments

Market Memory: An Abbreviated Tale Of Two Bottoms (Part 1)

Thu, 17 Sep 2009 00:09:42 -0400

Thanks but it's true. Look at this mkt! Nobody wants to buy into the move but they have to. Watch out as shorts rush in again close to 1100. If they get clobbered again that will make the mkt go to 1200. Shorts will SHAT their pants again. Usually SHORTS are contrarian thunkers. Not this time everyone thinks the mkt should dump. It's the most obvious trade out there to short the mkt and this why we keep rising.

On Sep 14 08:59 PM iNVestorUnrest wrote:

> ok that's the funniest comment I've read in a long time!!

Market Memory: An Abbreviated Tale Of Two Bottoms (Part 1)

Sun, 06 Sep 2009 15:44:16 -0400

Can you invest in huggies? Proctor and Gamble or Kimberly Clark may be stocks to own cause me thinks Shorts SHAT their pants and need a clean up in aisle 1.

I know people were shorting all week long into that jobs report number. I think I smell a doo-doo

Is a Crash Impending?

Sun, 06 Sep 2009 15:35:51 -0400

Are you making stock predictions about what happened last year? Unless you have access to a time machine and can short the market one year ago you may want to change your title to "is a crash impending again"

Scary Drop in Velocity of Money: Is Deflation Knocking?

Sun, 06 Sep 2009 15:29:45 -0400

deflation has kicked the door wide open--anybody talkin' about inflation now has been a victim of random "teabaggin'"

Base Metal Miners Win UBS Upgrades

Sun, 06 Sep 2009 15:24:58 -0400

yeah way late to this upgrade makes me want to sell

Higher Interest Rates: Not a Question of 'If' but 'When'

Sun, 06 Sep 2009 15:22:47 -0400

not until housing prices rise or stabilize--they know raising interest rates will cause a longer recession

Market Still Giving Benefit of Doubt to Recovery's Next Phase

Sun, 06 Sep 2009 15:20:47 -0400

we are recovering like someone that attends the ALCOHOLICS ANONYMOUS meeting. We still have bad hangovers.

Market Memory: An Abbreviated Tale Of Two Bottoms (Part 1)

Sun, 06 Sep 2009 15:19:05 -0400

It's a good argument to ask the mainstream media like CNBC what bottom are they talking about because that's all they talk about. Are we going to retest the bottom? CNBC may be the best contrarian play out there. When they pump you dump! When Cramer says buy you run to the hills! When they scare investors out you buy. I know it's never simple like that but I like your point that the Dow jones and S&P 500 are distractions when the real story is about individual stocks.

You may be right on that this market can jump higher because way too many people missed the bottom and aren't invested. Everyone on CNBC telling you it's overbought and about to drop wants to buy the market much lower that's all. And they are getting crushed shorting since 666.

Time to Look at Auto Stocks?

Sun, 03 May 2009 21:49:50 -0400

HAHAHAHA! Man oh man buy auto stocks??? Screw that if you believe auto stocks are a buy then why not buy a stock liK GE which is cheap and less risk?

Or buy steel b/c it takes steel to make cars. Nucor and Arcelor Mittal make more sense than GM or F

Why This Rally Is Unsustainable

Sun, 03 May 2009 21:46:35 -0400

shorts are shattin' their pants right now for the last two months

FAS/FAZ: Dangerously Crossing the Ultimate Pairs Trade

Sun, 03 May 2009 21:45:37 -0400

DIVIDIVI-- yep, employment ##'s this week, swine flu scares, lotsa short sellers on the wrong side since March.

I agree with to quote the writer:

"We all know the underlying conditions of the economy and financial system are perilous and wracked with danger going forward. But I think the dichotomy is becoming clear: Professional money managers that missed the move up who are begging for a second chance to buy on a retest, and those that remain short convinced the market has overplayed its hand and will dump on any given notice. I’m an optimist for the most part, so you see where my directional bias remains. However, that does not mean that I take any of the risks for granted to the point that I would trust the market to treat my portfolio with fragile care and consideration."

to me this says if you don't want to get outta the mkt then you better cover your ass with any tools out there and if you don't like OPTIONS then at least with the FAS-FAZ you don't have decay with expiration week

use FAS-FAZ to hedge not make money

On May 03 06:48 PM divi-divi wrote:

> I went long FAZ for the first time a few weeks ago and unfortunately
>
> bought 500 shares at almost the high of the day at 13, I made a stupid
> mistake and pulled the trigger right at the open after FAZ went up
> to 13 and change in the pre-market, and then it tanked to the 9's
> by the close. FAZ has not returned to 13 since that day.
>
> Now I am waiting to get even, but of course I am nervous about the
> stress test this week, I did not plan to be in FAZ this long. I
> thought about doing the exact same trade as this article discusses,
> sell 250 shares of FAZ and buy 250 FAS, to try and at least break
> even on the volatility over the stress test, (I'm a novice trader
> as you can tell from my FAZ mistake) it just seemed to me that the
> trade might work when I noticed FAS dropping lower than FAZ.

>
> I am a bit confused about the time frame the author of this article
> suggests staying in this trade, because I was hoping to exit this
> week if I break even, but after reading the article I am wondering
> if it would be worthwhile to stay in it in case we test the March
> lows. I don't think the banks will continue to rally unless they
> are being propped up by the gov, even Goldman Sachs says the banks
> are overextended now, and most money managers are saying they are
> going to buy tech. I tend to think that this is a sucker's rally,
> and when more retail investors start to come in as the S&P nears
> 900, the bank stocks will be shorted.
>
> I don't know if I should hold on to FAS and FAZ until one makes a
> big move, or just get out if I break about even.
>
> I am long a few REITS, so I was also thinking about hanging on to
> FAZ as a hedge, but the decay worries me. Some traders say the
decay
> doesn't matter because if the banks tank, FAZ will take off big and
> make up for it.
>
> Any help to get the novice trader back to even or better would be
> greatly appreciated (please don't suggest any option plays, I don't
> want to get involved with them.)
>
> Thanks so much!
>
>
>

FAS/FAZ: Dangerously Crossing the Ultimate Pairs Trade

Sun, 03 May 2009 21:39:32 -0400

dividivi-yep i read the article a couple of times b/c it's long and there's a lot in there. I think the writer said he was bullish on the mkt and using the FAZ-FAS trade as a hedge on financial stocks.

If you are long on stocks like reits then you definitely want protection. I think it said in the article something about a flat mkt outcome would disapppoint returns on FAZ-FAS but means that you are makin'--at least not losing--money on your stocks!

If you trade an option STRADDLE AT-THE-MONEY you want one side of the trade to go to zero b/c it means the VOL is in your favor on the other side

FAS/FAZ: Dangerously Crossing the Ultimate Pairs Trade

Sat, 02 May 2009 14:41:44 -0400

Oh yeah if you think they both are droppin' to zero then put your money where your mouth is and short both ETFs.

That is a ballsy trade I would like to see. Maybe you'll make money

FAS/FAZ: Dangerously Crossing the Ultimate Pairs Trade

Sat, 02 May 2009 14:34:21 -0400

what a "stooopid" comment.

Comments like this indicate you don't trade options. If you ever traded options you would know that buying volatility with straddles and strangles costs a lot of money and most of time you lose money on both sides b/c of decay and expiration. This is why pros sell options instead of buying them b/c they have the advantage of decaying time value.

I'm not gonna defend the trade one way or the other. But I like the idea of using it as a defensive hedge in case this market retests March 9th.

The writer even put in the title "dangerous" and said he didn't want FAZ to make money b/c it meant his stocks were going down. Nobody told you to put FAZ or FAS in your 401K-IRA

Take it from a person that trades options regularly--price does matter. 8 dollars each to enter the equivalent of an AT-THE-MONEY straddle is cheap without stress of expiration

Pick a stock like AAPL or GOLDMAN SACHS or any stock for that matter and try to buy an AT-THE-MONEY STRADDLE and see how much it cost you just in the front month--use JUNE b/c May expires in two weeks.

The only reason to buy VOL is to protect huge swings in the market and buy insurance. Do you stop buying insurance on your house and car every month even if you don't file a claim?

On Apr 29 12:20 PM john the babptist wrote:

> what a stooopid article. there I said it! Someone should stop
> super bad advice like this appreaing on this site. All 3x leveraged
> funs should be viewed as day trades only. As they decay over time
> for sure and will eventually all end up at 0. I think the extreem
> volitility is going out of the market now (could still trend down
> slowly though or sideways) This may be the end of an eara for the
> 3x funds anyway....

Fed Watch: Green Shoots Notwithstanding, Odds Favor More Easing

Sat, 02 May 2009 13:53:42 -0400

in order for any green shoots to actually occur, they must grow out of a pile of shit in the first place. And by the looks of it, there's plenty of shit to sort through in this market

Why This Rally Is Unsustainable

Sat, 02 May 2009 13:50:11 -0400

keep shorting and put your money where your mouth is. We are not retesting March 9th lows.

The Financial Power Elite May Not Bounce Back

Sat, 02 May 2009 13:49:14 -0400

aig was the fall guy to pay off bets in full. What a joke. The financial oligarchs always talk about free markets in public but take socialized taxpayer provided welfare behind closed doors

Three Card Monte and the Feigned Outrage Against AIG

Mon, 16 Mar 2009 19:08:12 -0400

Yessir! You were right! All CNBC and cable news anchors were crying about was the millions in "BONUS" paid to the employees.

What about the BILLIONS FUNNELED to the investment banks?

I don't think scarface washed his money that clean.

I like your three card monty analogy. It crystallizes the point because Aig is the fall guy.

Stocks That Trade Like Binary Options: Speculative Plays Under $10

Fri, 28 Nov 2008 08:46:37 -0500

Looks like you are right--there are BETTER discounts in the stock market than retail stores this black friday.

While people lose their minds in the stores fighting for discounts I'll be checking my shopping list on the stocks

The Honeymoon Is Over: Gauging the Market with an Obama Presidency

Sat, 08 Nov 2008 12:10:17 -0500

" suspension of any campaign promises to raise capital gains is absolutely necessary in a time of great economic crisis. If you want to shear a sheep, you better feed it and allow it to grow first. Wall Street is starving for stability and news of real encouragement to create an underlying bid in the market. Any potential tax raising is detrimental to economic recovery.

While the future of Main Street and Wall Street are inexorably tied like a perpetual loop, punitive decision making such as taxes will only curtail private capital injections and increase the liability of government bailouts to maintain liquidity in the markets and underlying economies of the world."

That was a positive panel of economists we saw in yesterdays conference. I think with a jump in the market they know that Obama is not out to ruin the stock market and will most likely be a moderate when it comes to our economy.

But as quoted if you want to shear that sheep you better feed the street first and give them want they want or there wont be any taxes to tax back!

What If Warren Buffett Is Wrong About the Markets?

Tue, 28 Oct 2008 02:03:33 -0400

Yeah, what if Buffett is just telling people to buy to shore up his own positions. Even buffett doesn't have enough cash reserves to buy the entire S&P

The $700 Billion Disconnect: Lost in Translation

Thu, 25 Sep 2008 16:30:24 -0400

Jim Rogers? I like Jim Rogers but this guy has profited on a major bet in commodities--which means he was betting against the u.s. dollar and rise inflation. Didn't he and Soros actually collaborate in a currency scam against the British Banks?

Not to mention, he moved outside of the U.S. so if he doesn't like it so much why should anyone listen to his opinion?

Wiping Your Assets Clean: Aftermath of a 500 Point Crush

Thu, 25 Sep 2008 00:01:16 -0400

nice articles. Just read this because your article on short sellers was impressive read.

Don't Be Fooled - Short Selling Restrictions Do Work

Thu, 25 Sep 2008 00:00:23 -0400

My my my this is really truthful about short selling. Uptick is a sham when it comes to decimals.

Ban short selling all the way. Look how orderly the markets have been like this author stated, not volatile. Yeah, down, but not crazy selling pressure like last week and now all the financials are still in business. something must be working.

A Trader Reflects on a Scary Week

Mon, 22 Sep 2008 17:11:12 -0400

Many people were scared last week. I like your position in Lockheed the most going into an election year and uncertainty in the world. I think that is your best trading idea.

I'm not sure if financials of any kind are a wise investment now, even the credit cards like Visa and Mastercard will face shrinking payments process if the the economy pulls back.

Your perspective on the market makers is very revealing and I do agree that they could be a back door to violating short selling rules. Overall, a long but well thought out article