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Weekly Investment & Finance Thread (Sept.-16-20 edition)
Daily investment & finance thread ^
| September 16th, 2013
| Freeper Investors
Posted on 09/16/2013 3:25:39 AM PDT by expat_panama
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To: abb; Abigail Adams; abigail2; Aliska; Aquamarine; B.O. Plenty; BenLurkin; bert; BipolarBob; ...
To: expat_panama
Pretty good rally if you were in over the weekend and sold early.
3
posted on
09/16/2013 2:20:34 PM PDT
by
Lurkina.n.Learnin
(If global warming exists I hope it is strong enough to reverse the Big Government snowball)
To: Lurkina.n.Learnin
One of those days today, shot up and spent the day grinding down. A lot of work; same return at the end of the day if there was just steady growth throughout, but 'steady' would've been a lot more pleasant.
What the heck, I'll be grateful for a profit and quit complaining:
DJIA up 0.8%
S&P up 0.6%
NASDAQ flat at -1/10%
To: expat_panama
5
posted on
09/16/2013 2:34:31 PM PDT
by
taildragger
(The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks....)
To: taildragger
Huh, now there's a thought.
I buy foreign stocks all the time --in fact just bot EDU today (Chinese education firm). The thing is I only buy them when they're listed on U.S. exchanges so I get all recourse/transparency stuff I'm used to. Not sure what the story is on foreign bonds tho, please share anything you find out 'cause who knows, bonds just may be the direction we're all going in a week or two. Foreign bonds especially...
To: abb; Abigail Adams; abigail2; Aliska; Aquamarine; B.O. Plenty; BenLurkin; bert; BipolarBob; ...
09/16/2013 07:34 PM ET - Stocks closed mixed Monday, as the Nasdaq continued a lagging trend. The composite fell 0.1% after a bearish reversal that saw the index erase a 0.9% burst at the open. The S&P 500 gained 0.6% and the Dow Jones industrial average 0.8% as volume rose across the board. Since the Nasdaq made a new high Sept. 9, it has inched up just 0.3%. By comparison, ... More »
--and this morning's index futures are flat. More "wait'n'see" I guess...
To: expat_panama
ZH is busily postulating that, when OBRA has a failure (3 times in last 4 weeks), the thing to do is to sell gold (presumably futures, but ETFs might do as well) looking for a $7-10 drop within an hour. I happen to think this is crap, and VERY dangerous...just passing the notion along for whatever it may be worth.
Trying a new short-term (< 1 week) IV arb strategy in options, in this case GMCR. Will report on success/failure on Thursday or Friday.
8
posted on
09/17/2013 5:38:59 AM PDT
by
SAJ
To: SAJ
—and metals futures are down this AM.
If you get a chance, I’d be grateful for some help w/ acronyms ZH and OBRA. In the mean time, I know I got homework to do on Implied Volatility Arbitrage.
To: expat_panama
Sorry, Pete. ZH is zerohedge.com, the notorious gloom-doom-and-we're-all-gonna-die site that rants regarding financial matters.
OBRA (sic) is a typo. Should have typed OPRA, the Option Price Reporting Authority. Yesterday, oppie prices were simply unavailable for 30-40 minutes. The ultimate player/arbiter/everything else here is OPRA.
The IV trade I'm trying is buying an Oct ATM staddle and writing slightly more OOM strangles that expire this Friday. Clearly, this situationally limits opportunities to those stocks that have weeklies (except for the week of the 3rd Monday of the month), but, seems to me that if there happens to be excess IV on the short side (and, here, it is small, just a couple of points), then the trade should profit.
We shall see, shortly.
10
posted on
09/17/2013 6:11:28 AM PDT
by
SAJ
To: SAJ
staddle = straddle.
Sorry, (mutter)...
11
posted on
09/17/2013 6:15:27 AM PDT
by
SAJ
To: SAJ
the thing to do is to sell gold (presumably futures, but ETFs might do as well) looking for a $7-10 drop within an hour. I would think the opposite might be true for an extended stock market outage or war or any other economic bad news. But I could be wrong.
To: expat_panama
13
posted on
09/17/2013 6:42:41 AM PDT
by
csmusaret
(Will remove Obama-Biden bumperstickers for $10)
To: SAJ
It’s an inconvenience when a listing goes down for a half hr but what’s scary is it often gets used by the morons in Washington to say we got a ‘crisis’ that demands massive legislative action. Fortunately what happened w/ NASDAQ not too long ago never got anywhere but we’re still dealing with the messes the lawmakers spit out after Oct. ‘87, the dotcom in ‘00, and Oct. ‘08.
To: csmusaret
The video was dumb.
I loved it —TX!
To: BipolarBob
Bob -- The **market** wasn't quoteless; only the options. BIG difference from, for example, when NASDAQ went quoteless briefly a couple-three weeks ago.
Apples and oranges, m'FRiend. As noted in the original post, I think this sort of event-timing (putative) trade is an horrible idea, just awful, no matter whether stocks, options, or kumquat quotes go down.
16
posted on
09/17/2013 6:56:57 AM PDT
by
SAJ
To: expat_panama
One of these days, the HFT crowd are going to do something REALLY indefensible, and crash one or another set of mkt quotes...and THEN we shall see if anyone at all is serious about market integrity (cough). There is no valid broad economic purpose to allowing HFT, only permission of a very dubious form of self-enrichment of favoured groups.
No 'legislative action' is required to correct this situation, either. SEC have plenary authority already to order the cessation of any form of mkt manipulation. No sane person can possibly argue that HFT is anything other than manipulation (well, HFT practitioners are probably sane enough, but I'm speaking of disinterested parties).
17
posted on
09/17/2013 7:02:39 AM PDT
by
SAJ
To: SAJ
No sane person can possibly argue that HFT is anything other than manipulation (well, HFT practitioners are probably sane enough, but I'm speaking of disinterested parties). I like HFT's because I make money from them, as does virtually everyone that trades stocks. That makes anyone who never trades "disinterested", and I can understand their favoring government control of capital. It's a controversy; back in August Aliska were talking about this, she felt it was 'cheating' --a view held by many. My view is that I don't mind whenever someone 'cheats' me in a way that I end up making money.
To: expat_panama
Really? Care to describe your method from profiting on the back of this scheme?
19
posted on
09/17/2013 7:45:18 AM PDT
by
SAJ
To: SAJ
describe your method from profiting on the back of this scheme?Scheme, backside, hmmm. AH, you're talking about private enterprise and the open market vs state control! Still not sure what you want to know about it.
I mean, you already know that other stuff being equal a market price transaction goes through when the highest offered bid meets the lowest price asked, and that entrepreneurs are constantly looking for market niches which is constantly making trading more efficient therefore more profitable. We also know that that onlookers often try to chisel a percentage without doing any work so they call for government control.
So when I trade I find the HFTers pay me more when I sell and they ask less than the other seller when I buy. I profit. I like profit. I don't like gov't interference stopping my profits. What am I missing?
Seriously, I understand this (like all new market niches) is controversial and that the discussion often tends to generate more heat than light. Please forgive my focus.
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