Weekend Post: Hurricane Irene Edition

As the Wold Banksters gather in the idyllic mountain retreat of Jackson Hole, Wyoming, the East Coast was pounded by a Hurricane.  Anyone else see the symbolism there?

Any way, one of the headlines I saw was that Trichet was working on "radical" solutions for the Euro banks:
http://www.businessinsider.com/the-eu-is-working-on-a-radical-plan-for-banks-2011-8

Awesome.  All we need now is a radical plan how to make the bad debt disappear and we should be all "good."

One of the interesting events of the last week was Uncle Warren putting $5BN into BofA.  The interesting bit for me was how the Global Stock Market rallied huge on this "investment."  Hmmm....

So, you're telling me that a $5 Billion investment from a really rich investor can cause a global rally in asset values worth $500BN to $1 Trillion?  And, we also learned in 2010 that the market can "flash crash" just because some firm decides to sell $3BN in S&P futures in a short period of time?

"C'mon Man!"

If the markets are truly this fragile and vulnerable, then what's going to happen if something really bad happens?  

Ooops.  I almost forgot....the markets did lose 60% of it's value in less than TWO years way, way, way back in 2009.

And, we wonder why people would rather park their bucks in low yielding Government securities....

I've been thinking more about gold lately, thus it's the focus of my efforts the last few weekends.  I find myself wanting to short OCT straddles, like the 1700/1900 or 1600/1900.  I think we're going to lapse into triangular congestion next several weeks.   I also find myself wanting to just take a stab at being short OCT futures around $1854.

Gold Report 28AUG11


In regard to the S&P 500, I just see more "sideways" triangular chop in the next 2-3 weeks.  Zzzzzzz.

14 comments:

Nickles Bitchez said...

Hyperinflation?

Say it isn't so!!!

But let me 're-align' my waves then...

abcd-Qe'n'PRINT-e-X...

After that I'll probably be dead, so I'll leave my NICKLE collection to whoever is left (to sort out)...

Remember - They are about the PERFECT weight/Cu/& Nickle content to slag bullets with...

Andy T said...

I know I'll be taking a roll of Kennedy's off you before then....

AmenRa said...

Andy T

I'm going to leave your post up for Monday morning. Actually I think I'm going to do that from here on out.

Andy T said...

Sounds good bro.

Take Monday AMs off....

Most traders do anyway.

AmenRa said...

Interesting week of economic reports.
Dallas Fed Mfg (est -6)
Consumer Confidence (3k surveyed > 500) & est 52.5
ADP (est 110k)
Chicago PMI (est 54.0)
ISM Mfg (est 48.5)
Initial Claims (est 407k)
NFP (est 67k & 9.1%).

AmenRa said...

Bernanke said no QE yet markets are rising as if it's still coming. Are they rising because Irene will help boost GDP (broken window)? Is it another EOM window dressing?

AmenRa said...

Yahoo headline: Futures Gain As Normal Wall Street Operations Expected

GTFOOH

AmenRa said...

http://www.ft.com/intl/cms/s/0/1c1c92b6-d22e-11e0-9137-00144feab49a.html?ftcamp=rss#axzz1WQ7Eo8c4
Brussels rules out bank recapitalisation

By Peter Spiegel in Brussels

European Union officials on Monday insisted Europe’s banks did not need a new round of public-sector recapitalisation, arguing they had made significant progress towards shoring up their finances over the course of the last year.

Amadeu Altafaj-Tardio, spokesman for EU economic chief Olli Rehn, said the recently-completed stress tests for the banking sector showed that only a select group of banks were in need of capital injections and that national authorities were already dealing with those cases.

“European banks are much better capitalised than they were even a year ago,” Mr Altafaj said.

The Commission’s stance, likely to be repeated this afternoon when Mr Rehn appears before the European Parliament’s economic affairs committee, appeared to be a direct refutation of warnings at the weekend by Christine Lagarde, the IMF chief, who called for a forced public-sector injection of capital into Europe’s banks.

AmenRa said...

Dallas Fed -11.4 WTE
Pending Home Sales -1.3% WTE

Andy T said...

Gold got smacked right into that first level resistance.

Andy T said...

DXY looks like it's been in a sleeper hold last several weeks....

Geez.

AmenRa said...

Andy T

Today was LTD for gold futures.

mcHAPPY said...

Ra,

What do you think of this?

http://jamesgoodeonthemoney.blogspot.com/2011/08/how-now-down-dow.html

AmenRa said...

mcHAPPY

He posted that right before the EOM window dressing shenanigans. Todays action put the SPX above its weekly 3LB mid but it's still below the monthly 3LB mid.


Corner is up.

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