Thursday, April 2, 2009

Feel Lucky Punk?

Has the gov't shot all of their bullets now? Is the chamber empty? Do you feel lucky?

The only bullet left is the uptick rule. We are months from that. And not much of a bullet. The only reason they will need to use that if the market slides from here.

The M2M ruling is significant for the short term. It gives investors the idea that toxic assets are gone or are a lot less toxic. It may be true for some, but not all. It also gives banks the ability to model their own price for assets which have no market. This is very dangerous and is why FASB 157 was created in the first place.

Regardless I think we should see a tail off of the market the rest of the day. Not a fast tail off, but a slow pull back. There is no more news for the bulls to look forward to. If it does not tail off and rises, it is a pure momentum play which is understandable. No sense sticking your neck out on this one. FASB was obviously forced into this against their will. Wall Street wins at the cost of Main Street once again.


  1. We are going into an upwards consolidation then choppy sideways trading for a while.

    My strategy now is to 1) buy commodity currencies on the dips and sell on rally strength; and 2) buy vix calls near eod rally days and sell on the gap down the next morning.


  2. The VIX is now going GREEN....this could get interesting

  3. VIX is solid once again. Wow. Jobs report tomorrow. But VIX historically goes down on Fridays. Not always, but historically it goes down due to nature of options trading.

  4. yeh baby this pig is gettin very fat and that close sucked....hehhehe

  5. Hey BSen... pls consider adding me to your blog roll..... as you are obviously on mine!!!!

    Keep up the good work....

    over 900 hits today, and hope to throw some traffic your way, as to make up for any past mistakes....


    plus there are girls trading over here.... lol...