First, congrats to Mr. Le Fly. After getting beat up on the VXX, it may be the biggest win of the year for everyone involved. 50% quick. In a messed-up ETN. Super-duper.
Let me say that much of this panic correction has been rather predictable even stripping out Europe and the loss of liquidity.
It should now be obvious that “investors” no longer invest. They “borrow” cheap currency from other countries and buy other “stuff”, whether it is oil or copper or stocks. The ease of “borrowing” determines the “investment”.
It has all become a game between countries and currencies. Between Central Bankers and Primary Dealers. All racing to beat each other to some mysterious finish line. Then the extremes are all reversed and the race is the other way.
This is obviously not really a stock market or a market of stocks. Sure, some company news can bring about movement, but its as we mentioned in the past; all in or all out. All long or all short.
How can this be regulated? I’ll tell you; it can’t. Policy makers don’t know enough to win and Central Bankers need the game to go on at any cost. At any cost…
We are now near the flash-crash zone. Defensive stocks are being hit–though not nearly as hard as the speculative darlings. In this market, Apple Inc. [[aapl]] will be the key stock to watch. Because it is everyone’s fav, you’ll know when the direction changes by watching its action. I don’t recommend to buy it, but in this market, it is your tell…
ADDENDUM: the lesson? don’t always believe what the market is telling you–even if it is screaming it in your face for months…It is a great lier…
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