17 replies to this topic

[dTraderB]

One of my golden rules of trading is to move quickly out of existing position and go net short or net long depending on new information or events. 

So, earlier this week I started building a BIG SHORT position but quickly aborted that when the REPO madness started hitting the twitter feeds. Based on informed analysis I decided to trade mainly LONG for the rest of the week. 

 

This afternoon, I closed all LONGS and bought VXX LONG and JAN QQQ puts. 

 

What could have been a disaster turned out to be a nice profit after quick analysis and closing/opening new position.

 

SO, I am now NET SHORT again and watching what transpires over the weekend until the new week begins with trading on Sunday evening. 

 

 

 

 

 

[dTraderB]

There is more to the REPO stuff

 

Not as dramatic as this but something is happening and it has not been explained to the market particicipants

 

Brian Brantley‏ @investentropy

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Brian Brantley Retweeted Will Meade

Or a liquidity crisis out of the European banking sector. You know, that whole Repo thing

Brian Brantley added,

Will Meade @realwillmeade

A trader-hedge fund this afternoon somewhere on the planet purchased 50,000 $VIX April2020 $65 calls for 10 cents VIX is currently $12.65, almost 500% gain to $65 Last time VIX hit 65 was Oct 2008…

2:19 PM - 25 Oct 2019

[dTraderB]

Opinion: The Federal Reserve is in stealth intervention mode

MarketWatch-8 hours ago

But market demand for overnight repo operations has far exceeded even the $75 billion the Fed has allocated, suggesting a lot more liquidity demand. Hence ...

What Is The Fed Hiding With Its “Repo” Operations

Gold Seek-9 hours ago

I put “repo” in quotes because the term is a thin veil for what is indisputably the return of “QE” money printing. The statement posted on the Fed's website ...

[skott]

So you aborted the Shorts but didn't post it right? and went long and made $$$ but didn't post that either, right? All the while during
the week when you were supposedly long, you continued to make bearish posts? am I missing something here?

[da_cheif]

So you aborted the Shorts but didn't post it right? and went long and made $$$ but didn't post that either, right? All the while during
the week when you were supposedly long, you continued to make bearish posts? am I missing something here?

[ryanoo]

Negative divergence in SPX, but the current period could be similar to Feb-Aug 2017 (during the same period QQQ didn't show the same neg div).  When weekly chart shows a neg div then it usually has a LT consequence.

Chart clearly has a neg div, not as pronounced as in 2018 though.  If breaks out, maybe a blowoff top within six months as from Sep'17 to Jan'18?  Nov'19 break out, Apr or May'20 top.

https://pbs.twimg.co...W0QXUAEXyG8.png

[opinionated]

Typical TA means ---->Nothing<----  when they crank up QE....  and the world banks have all said they are ramping up into November....  

 

Advce...  Do a bit of research about massive QE and it's effects before you sleep on a short position.

[skott]

Typical TA means ---->Nothing<----  when they crank up QE....  and the world banks have all said they are ramping up into November....  
 
Advce...  Do a bit of research about massive QE and it's effects before you sleep on a short position.

What you are possibly missing is that they are implementing qe4 when we are at full employment, no deflation, no crash occurring. There is a big problem in the background

[dTraderB]

DOW 50000 by end of year if all it took to rally markets was pumping a trillion or two into the system

 

BTW, you are free to read or not read my posts and I will not be going back to dredge previous posts or extracts from those posts to try to "convince" you of anything 
 

Been here since the last century & will continue to post in this Great Forum that has withstood the asininity and arrogance of many. Thank you, Mark.

[12SPX]

DOW 50000 by end of year if all it took to rally markets was pumping a trillion or two into the system

 

BTW, you are free to read or not read my posts and I will not be going back to dredge previous posts or extracts from those posts to try to "convince" you of anything 
 

Been here since the last century & will continue to post in this Great Forum that has withstood the asininity and arrogance of many. Thank you, Mark.

Yay!!  And love the morning posts, hint hint lol!!