Jump to content

Broken Beer Steins Scatter Wall Street


Recommended Posts

  • Replies 433
  • Created
  • Last Reply

http://biz.yahoo.com/ap/080316/jpmorgan_bear_stearns.html

JPMorgan Chief Financial Officer Michael Cavanagh did not say what would happen to Bear Stearns' 14,000 employees worldwide or whether the 85-year-old Bear Stearns name would live on after surviving the Great Depression, two World Wars and a slew of recessions.
the article's math is so subprime--the last 85 years contained only one world war. . . . unless your calendar's based on derivative leverage.
Link to comment
Share on other sites

PEI bottom on 3/22 next week. If it is, I can't believe how accurate M. Armstrong was with his 1997 PEI calendar.

 

Why do they always wait for Sunday night?

651976[/snapback]

 

Wonder if the pastor/preacher/priest told them all to turn their blackberries off during services today?

 

Then again maybe the church leaders were all saying prayers and wondering if their money was safe?

Link to comment
Share on other sites

It's just basic math. We've covered this before. See if you can run a search for "slippage" using Google in the left column

651973[/snapback]

 

Ok, now I'm looking at not-ultra ETFs:

 

http://finance.yahoo.com/q/bc?s=RWM&t=1y&l...&c=RYAFX,%5Erut

 

Correct me if I'm wrong, but RWM from proshares seems to have no slippage at all (rydex has). I guess the evil is in 2x exposure.

Link to comment
Share on other sites

Ok, now I'm looking at not-ultra ETFs:

 

http://finance.yahoo.com/q/bc?s=RWM&t=1y&l...&c=RYAFX,%5Erut

 

Correct me if I'm wrong, but RWM from proshares seems to have no slippage at all (rydex has). I guess the evil is in 2x exposure.

651983[/snapback]

I have a different idea about how these work. I spent a couple of years in bearx. Whenever the market turned back up, bearx was about 2% lower than it should have been, but it corrected over a few days. With these ETFs, it shows up as the premium or discount in the ETF itself. I haven't run any numbers on these etfs, but from a little bit of trading qid and qqqq over the last 3 months, it seems the same. At the time, I thought it had to do with the price of options. Today I'm not so sure. Problem is, you're going to want to get out just after the turn, which is exactly when it goes against you. I just don't let it bother me. 1 or 2% won't make or break my strategy, and, anyway, I rarely get out early enough for this to hurt too bad.

 

Compare the nasdaq vs qid for 5 days and 3 months and see how it tracks well when the trend holds, but breaks off trend on a turnaround.

 

I have not looked at this thing too closely over a lot of turnarounds, but the math I've done over a couple of trades since the January bottom don't show a big slippage problem. A bigger problem is the 50 cents I lose fumbling around logging into my broker.

Link to comment
Share on other sites

http://beprepared.com/

Bought from them - good people

651801[/snapback]

 

Are you stocking up on food? Just curious.

Depending on what you're doing, I know a few sites. :ph34r:

 

 

My wife went to a church sponsored financial planning seminar. 

 

She wants to know why I won't diversify out of my precious metal stocks.

 

What should I tell her?  <_<  <_<

 

:ph34r:  ;)

651857[/snapback]

 

To keep my wife at bay, I told her she can buy as much gold jewlery as she wants. That made her happy, and she's helping us invest. :D

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...