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A Scientific Quiz


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If the market decline has not made you excited, here is a story that I posted earlier at Night Stool page....

 

The day finally arrived: Forrest Gump dies and goes to Heaven. He is at the Pearly Gates, and is met by St. Peter himself. However, the gates are closed.

 

Forrest approaches the Gatekeeper. St. Peter says, ?Well, Forrest, it?s certainly good to see you. We have heard a lot about you. I must inform you that this place is filling up fast, and we?ve been administering an entrance examination for everyone. The tests are short, but you have to pass them before you can get into Heaven.?

 

Forrest responds, ?It shor is good to be here St. Peter, sir. But nobody tolt me about the entrance exam. Shor hope the test ain?t too hard; life was a big enough test as it was.?

 

St. Peter goes on, ?Yes, I know, Forest, but the test is only three questions. Here are the questions:

1. ?What days of the week begin with the letter T??

2. ?How many seconds are there in a year??

3. ?What is God?s first name??

 

Forrest leaves to think the questions over.

 

He returns the next day and sees St. Peter, who waives him up and says, ?Now that you have had a chance to think the questions over, tell me your answers.?

 

Forrest says, ?Well, the first one- how many days in the week begin with the letter ?T?? Shucks, that one?s easy. That?d be Today and Tomorrow.?

 

St Peter?s eyes open wide and he exclaims, ?Forrest, that?s not what I was thinking, but------ you do have a point and I guess I didn?t specify, so I?ll give you credit for that answer. How about the next one?? asks St. Peter. ?How many seconds in a year??

 

?Now that one?s harder,? says Forrest, ?but I thunk and thunk about that and I guess the only answer is 12.?

 

Astounded, St. Peter says, ?12? 12? Forrest, how on Heaven?s name could you come up with 12 seconds in a year??

 

Forrest says, ?Shucks, there?s gotta be 12: January 2nd, February 2nd, March 2nd???

 

?Hold it,? interrupts St. Peter. ?I see where you?re going with this, and I see your point, though that wasn?t quite what I had in mind, but I?ll have to give you credit for that one, too. Let?s go on with the next and final question. Can you tell me God?s first name??

 

?Shor,? Forrest replied, ?it?s Andy.?

 

?Andy?!!? exclaimed an exasperated and frustrated St. Peter. ?Okay, I can understand how you came up with your answers to my first two questions, but just how in the world did you come up with the name of Andy as the first name of God??

 

?Shucks, that was the easiest one of all,? Forrest replied. ?I learned it from the song?..

 

?ANDY WALKS WITH ME, ANDY TALKS WITH ME, ANDY TELLS ME I AM HIS OWN??

 

St. Peter opens the Pearly Gates and said, ?Run in, Forrest, run!?

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Meta,

 

Not sure. It is so closely correlated with gold that I trade it using the gold and dollar charts. CHF tracks gold very very closely and unlike gold no one pretends that there isn't massive intervention. That is what the ESF stated purpose is. So the feed index becomes very important in timing these trades.

 

 

The great thing is that currencies generally move very slowly in relation to the rest of the market. I based this hedge on the gold chart along with an anticipated jam next week. I have been holding these options for over a year!

 

This hedge is a very short term trade. I plan on holding for 10 days to 2 weeks at the most.

 

The intervention in holding down CHF has been a complete joke. They desperately tried to hold it below .70 and would short it every day at the same time gold was shorted just before the NY open. Over time it has taken less and less time to recover. As recently as 3 weeks ago they were pushing it down as much as .6% per day and it was completely recovering within 1-2 hours and rising.

 

I don't know where the line in the sand is but in my experience all CHF intervention correlates to gold spot intervention. Monday and Tuesday will be important days.

 

If they don't do anything I may lighten up on the hedge Monday or Tuesday. We shall see.

 

These options expire in March so I really don't need to do much of anything either way because I know where we are headed long term. Just wanted to cover some profit because it felt right.

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