The market as casino chip trading continues without relent- unless you were loaded to the gills coming into the day (and most days) it is impossible to catch these continuous gap ups or gap downs.
I am selling some long exposure with the caveat that if the S&P breaks north of 804, all the HAL9000s of the world shall jump into the market and I'll be buying back mucho merchandise to partake in Kool Aid dreams.
- Sold my entire Ultrashort Real Estate (SRS) short for boffo bucks - this was bought in the last 15 minutes Friday, and the perfect example of how you cannot partake in moves unless you are "already in" overnight. +11% today
- Sold most of the Morgan Stanley (MS) that we went long Friday +13% today (remember we are playing this both long and short)
- Sold some Mosaic (MOS)
- Some some Lennar (LEN) that we went long Friday +12%
- Sold almost all HDFC Bank (HDB) + 11%
Remember, we've rallied countless times (remember last Wednesday?) on government interventions. The sheer scale of money being thrown at the problem is now overwhelming so you have to allow that it is now reaching a point of drowning the system in money. I was thinking last night about all the individual programs we've introduced (not to mention the old school lowering of rates to zilch), and how much program is costing/being thrown into the system... considering the entire U.S. economy is $13-$14 Trillion, we literally are creating a new parallel US economy to throw at the current one. So we have to allow that simply by sheer force, all this will create some illusory "good times" at least in terms of asset prices as so many US pesos chase a fixed amount of assets.
But indeed, this is thievery of the highest order. But that's not the spin; in fact Cristina Romer - head of the White House Council of Economists said the private investors we are literally handing money to, to buy assets (all in the name of not calling it nationalization) are doing us a favor!
- the head of the president's Council of Economic Advisers, noting that private investors are "kind of doing us a favor" in buying toxic assets and should be recognized for their contribution.
I can't even make this stuff up. Reverse Robin Hood (steal from the middle to give to the upper 0.2%) lives. Momma, have your baby grow up to be a US banker - those who ruin the system have heaven and earth moved for them. I'll have more details on how this plan really is scamming you, but I am going to look for some writers who can put it far more elegantly than I can. All I know is PIMCO's Bill Gross is loving it, which means its a rip off for the common man.
Long all names mentioned in fund; no personal position
Did you like this article?
's
