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World Stock Markets Trading Discussion - Carefree carousing


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All Ords 5-day chart

big.chart?nosettings=1&symb=AU:XAO&uf=0&

http://bigcharts.mar...com/default.asp

 

More of the same today with All Ords closing +0.4%.  Financials +1.1% rose to the top of the gainers and Telecomms -1.2% was at the other end.

Over in Asia, China slugged for -2.5%, Hong Kong -0.4%, Japan and India closed.

UK/Europe just open with minor gains: FTSE +0.3%, DAX +0.1%, CAC +0.2%.

 

big.chart?nosettings=1&symb=UK%3AUKX&uf=

 

 

big.chart?nosettings=1&symb=DX%3ADAX&uf=

 

 

big.chart?nosettings=1&symb=FR%3APX1&uf=

  http://bigcharts.mar...com/default.asp

 

 

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WHAT IS SEEN AND WHAT IS NOT SEEN

The best trades are to see what is not seen by the market and act accordingly.

i.e. to arbitrage between what is seen and what is not seen. 

(Thank you Frederick Bastiat for that wonderful turn of phrase)

That's why I take my hat of to Warrens great S&P put sale (now sadly ended when the puts NOW!!! would actually be of real value)

Warren was able to sell lots of long dated S&P puts after 2008 and make a fortune

All the while the FED through QE was handing out one big S&P put for FREE.

Ill say that again in case you missed it.....FOR FREE!!!!!!!!!!!!!!!!!!!!

Warren was able to monetize this free FED put and actually get some one to pay good money for it.

$2.5 Billion in good money

And when QE ended he simply stopped selling the puts!!!

He simply arbitraged between the invisible FED free puts and the visible puts he was selling!!!!!!!!

Between the seen and the unseen!!!!

Brilliant!!!!!!!!!!!!!!!!

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ONE MORE SEEN AND UNSEEN TRADE

What is any one buying CDS on Deutche Bank debt (seen insurance)

When the German Government will bail them out (unseen insurance)

Deutche Bank debt is as good as German Government debt.

Indeed one could build an ETF around seen/unseen trades.

Lets call it the Bastiat ETF in honor of the great economist.

 

Having said that I think it is high time for European sovereign debt yields to start blowing out

As the US Government sucks up capital to finance their deficit.

 

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