"Bernanke laid the perfect trap for you bitchasses. He knew S&P
would move on the banks. He didn’t say a word until they made their
move. Like the true chess master that he is, he defeated S&P before
they started their assault on the US banking system. In the after hours
last night, short sellers went all in, hoping for the worst, expecting
tragedy.
Bernanke exacted maximum pain on your bullshit brokerage accounts by
dropping the hammer on you “DEFCON 3″ brainless, dickless know
nothings–precisely at the time you were caught leaning hardest. Sublime."
- iBankCoin's "The Fly"
Were we long or short? Read on - if only for the schaden-freude.
So, it turns out the Central Banker's had something up their sleeve all along. Indeed, this is why we held on to our Gold position over the last few weeks through thick and thin, pain and more pain.
What we didn't predict, however, was that this would happen this week. In fact, if it hadn't happened today we would've returned a nice profit on the news, with commodity prices spiking on this new injection of liquidity.
Given the disconnect between equity prices and other risk assets this week (see here for the conspiracy theory) we regarded this as an opportune moment to get short the market pre-Santa-or-no-Santa-uncertainty.
Our FTSE position, taken last night @ 5318 showed a nice profit this morning, as expected, on continued worsening of fundamental EU indicators (peripheral yields, financials etc). We left the trade running hoping to catch a break down on London open.
What in fact happened was a triple whammy of bullish newsflow:
1. http://www.zerohedge.com/news/china-begins-loosening-cycle-gold-crude-futures-spike
2. http://www.zerohedge.com/news/here-comes-global-liquidity-bail-out
3. http://www.zerohedge.com/news/adp-payroll-print-206000-comes-4-std-devs-higher-130000-consensus-above-highest-wall-street-est
Fortunately we were stopped at 5400. Mark the fund down by 2%.
No comments:
Post a Comment