Great Article
Haha i love the Ninjas writings…
They are clear without loosing the facts and lots of links to support his view!
I second this!
Slowly Building Shorts
Here some excerpts:
“The Bulltards tagged 1400. The falling 200 day EMA is nearby, ready to provide resistance. The SPX is now overbought on the daily timeframe (Slow STO). Volume has shriveled up, not exactly inspiring much confidence in the the rally to date. A drop to Support around 1370 is highly probable. The 1320 - 1330 area would be the next area of interest.
Volatility (VIX) has fallen to what amounts to COMPLACENCY levels in this credit crisis environment. Although technical analysis isn’t nearly as relevant on the VIX, this 20 area does appear to be an area of support.
Fannie Mae (FNM) has bounced from $18 to $35. Since then FNM has made a series of lower highs, $35, $32, $30, on declining volume. I have been shorting above $30 and have been taking some profits around $25. (I’m using puts to limit my downside risk.) I have my full position again and am looking for a break below $25 this time around. March New Home sales and Case Schiller Home Prices all showed an ACCELERATION of real estate mess.
Same goes for Freddie Mac (FRE). FRE bounced from $16 to about $34. Since then FRE has made a series of lower highs on declining volume. I have been shorting above $27 area using puts. I am now fully short again and looking for a break below the $22 area.
FNM and FRE are pretty much doomed. While they may eventually be bailed out or nationalized, the common shareholder will get ANNIHILATED.”
“Citigroup (C) raised $3 billion yesterday. Common shareholders continue to get diluted. This should come as no surprise to anybody. I recently wrote that things would get worse at ShittyGroup before they could get better in: Citigroup Earnings, Downgrades and LIBOR
Late last week I began nibbling at various short positions. I should be happily short by the end of the week or early next week just in time for the next leg down.
Read these recent headlines. You don’t even have to read the articles to get in the right ‘mood’. This stuff isn’t just a temporary blip. This is real and the long run consequences aren’t going to be pretty.”
“Getting long risky assets, such as equities, now and betting on a ‘second half recovery’ before the recession has really even started is border line retarded.”
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News
More News -> 15 Mins until Fed Decision
Headz up to the Cryptogon! Kevin over there fast as a shark ;)
Iran Pricing Oil in Euros and Yen +++++
And Now, the “Humanzee” or Chimpanzee/Human Hybrid ++++
New Zealand: Cook Strait Tidal Energy Project Getting Underway ++
Shortages Threaten Farmers’ Key Tool: Fertilizer ++++
Germany: EU Bails Out WestLB +++++
FDA Report Shows 49 Problems at Merck Vaccine Plant +++
News Wrapup
Big Picture->
Bear Stearns Bailout “Worst Fed Mistake in a Generation” +++
Inflation Abounds ++++
Gold Hanging on by Its Fingernails ++++
Words from the (investment) wise for the week that was (April 21 – 27, 2008) +++++
Petrobras’ Voyage to the Bottom of the Sea ++
Don’t be Fooled by this Sucker’s Rally; Buy Gold on Weakness ++
U.N. and World Bank say to tackle food crisis ++
Medicare “drifting towards disaster”: U.S. official ++
The Monetary Model of Exchange Rates, Money Demand Shocks and Order Flow +++
Banks: The End of the Beginning… +++
Inflation Fears & Food Shortages +++
Another Record Low in the Dollar +++
Are we Heading towards Global Famine? - Part 3 +++++
$200 Oil, $2,000 Gold ? +++++
Prison World +++++
Global Demographics - (Almost) Uncharted Waters ++++
(u may have to scroll down a bit below the head article)
Food Prices, Farmland, Global Rebalancing and Rural Labour Shortages ++++
(u may have to scroll down a bit below the head article)
Proposition Bets, Markets, and Suckers, from Jeff Watson ++++++
Bull Markets and Busted Banks +++
Stimulus Package: Does It Even Work? ++
Horatio Alger Multiplied by 1.3 Billion ++
Bagehot’s Lessons For The Fed, ++
Human Organs for Sale, Legally, in … Which Country? ++++
Global Inflation Continues to Accelerate ++++
Why the Stock Bulls Are Dead Wrong -
and I’m Stocking Up on Gold Instead ++++
A Word About Mortgage Resets: Tsunami ++++
Time to buy on the Chinese dip ++
Japan: Land of the Setting Sun… +++++
Via Cryptogon ->
Activists Collapse Radome at ECHELON Intercept Facility in New Zealand ++
13 Killed in Tijuana Gunbattles ++
Chinese Children Sold “Like Cabbages” Into Slavery +++
Number of U.S. Homes Facing Foreclosure Sees One Year Increase of 112% +++
Oil Company Profits Up Sharply +++
McCain Accused of Accepting Improper Donations from Rothschilds ++++
Revolution MoneyExchange +++++
‘Retired’ Goldman Sachs Executive to Head Trading for Merrill Lynch +++
Dollar Slide Drives Budget as Japan Shuns Treasuries +++++
Wachovia Facing Drug Money Laundering Investigation ++++
UK: Bank Bail-Outs to be Kept Secret ++++++
The Rise of the Sanford and Son Global Economy: Urban Miners Look for Precious Metals in Cell Phones ++
UK: BP Shutting Key Oil, Gas Pipeline System Over Ineos Strike ++
Computer Security Community Warns High Street Chains +++
New Zealand Food Prices Increasd 28.5% Over the Last Year ++
American Firm to Build Amusement Park in Baghdad +
Forex->
Ten Things Everyone Should Know About the VIX +++++
Recession Proof Your Portfolio: 50 Best Blogs for Free Investment Advice +++++
Austrian Economics->
What is Fractional Reserve Banking? +++++
What Is Fascism? +++++
Why Not Let Markets Set Prices? +++++
Position Update
GPB/JPY got stopped out (stop too tight again) for a Loss of 51pips.
No Open Positions as of writing.
As we await the Interest Rate Decision from the Federal Reserve Bank we can see carry trade strength all over the front while the EUR/USD is ranging but still on bearish course.
GPB/JPY 1H ->
GPB/CHF 1H ->
EUR/USD 1H ->
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