Monday, June 1, 2009

Artificial Things Suck (Well, Most Artificial Things)

There are only two things I like that are artificial and earnings manipulation and destroying our country aren't the two. This is absolutely insane. Sometimes artificial things get so large they become unattractive and that is where the market is today. The manufactured push thru the 200ma on the day GM goes under (including the move Friday which we should have seen as blatant front running) takes this artificial reconstruction and makes it way too lopsided to the bulls. Like two eyes staring in different directions, I don't know which way to look.

Some would call this a Double Top. A little lopsided on the right side (or maybe there is some form of temperature difference). As the pros continue to milk the shorts the balloons get larger which is kind of an oxymoron. With the recent thirst for perfection in appearance by our masters, you would think they would not overshoot their target, but sometimes I guess grown males get carried away.

Playing the large double tops takes some expert slight of hand and a supple touch. My success has been playing the 60m indicators both long and short when they hit extremes and keeping stops tight which takes emotion out of the game. Small yet firm plays that are very satisfying.

I'll post something more meaningful later tonight. The 60m deal is really working well and has removed emotion from my trading. Profits up and aggravation(at least with the investments) down.


  1. The nice thing about today's rally is that the banks didn't come out and play much. I suppose with Yields popping and other negative economic news that came out and is soon to be revealed....the bank market appears to have shot its wad so to speak! I believed today was to be red but never thought that news that folks were making more but spending less was "good" news or throughout the day that yields popping up causing Mortgage rates to mostly follow suit and thus halting the 'green shoots' of the housing recovery may have tempered the rally. Let's not forget that the extra money folks are making will go for the much higher gas prices. It is nice that construction is better...but who will be buying now? Look forward to your post later Shanky....ought to be interesting!


  2. 30 year no point conforming over 6%

    30 yr 1/4 pt conforming 5 7/8

    so much for housing

  3. I have a friend who tried recently to refinance to save about $400/m. He has 50% equity in his large home, a 6 figure income, and great credit history. Guess what - every bank has said no. They don't plan to lend the cash they have to anyone! They likely are sitting on it, trading with it, and might lend some out once rates are much higher (lower risk/higher reward for them.)

    Great eh?

  4. Schweizer, I am an Army Officer with a TS Clearance, 30% equity in my house and make payments on time with an extra 25% on the top to pay the principle down. Moreover, I have had the same job since I bought the house and make MORE a yr that the house is worth. DENIED to refinance. WTF over! People wonder why I am a little pessimistic on this "Housing Recovery". Throw in the higher interest rates and higher gas long recovery. Hope everyone got shorts yesterday at close...



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