Monthly Archives: March 2012

it’s because they got the trade wrong

yesterday Bloomberg was reporting the annual ranking of HF manager earnings by AR Magazine and the severity of the 35% drop…   to Average pay for the 25 top earners was $576 million last year, down from $883 million in 2010, … Continue reading

Posted in Uncategorized | Tagged , , , , , | Leave a comment

Where’s the Next Accident? See Negative Gamma Positions

you are probably aware of the carnage in the $TVIX 2x VIX ETN issued by Credit Suisse.  In this morning’s WSJ an article titled Chaos Over a Plunging Note reports that now the SEC is looking into the behavior of … Continue reading

Posted in Uncategorized | Tagged , , , , , , | Leave a comment

the Internal Conflict Inside the Fed’s Bubble of Fear

so what’s going on here?  Stocks have rallied to new highs, supposedly on better economic data, but on very little volume.  Bonds got crushed in a violent FOMC unwind yet held and have rebounded.  The specs are still shorting a … Continue reading

Posted in Uncategorized | Tagged , , , , , | Leave a comment

Risk-On/Off Question of the Day

What drives the multiple?  growth or inflation

Posted in Uncategorized | Tagged , , , , | Leave a comment

a Reflexive Process in the Bond Market

earlier this morning we tweeted on the twitter an interesting post from FT’s Money Supply blog by Robin Harding (sub req) regarding some comments by the Bank of Japan’s Gov Shirakawa made over this weekend at a Fed conference on … Continue reading

Posted in Uncategorized | Tagged , , , , | Leave a comment

The Market’s Diverging Inflation Expectations

with gas prices rising and becoming a hot button political issue we wanted to explore the market’s inflation expectations a little deeper.  As we pointed out in Gas Prices and the Real Equity Risk Premium market multiples will contract when … Continue reading

Posted in Uncategorized | Tagged , , , , | Leave a comment

Inverted Risk-On/Off Update – Gluttons For Punishment

This week’s CFTC COT report shows our Inverted Risk-On/Off trade as represented by the large speculator’s net position a substantial paring down of the risk-on long $FV_F while re-initiating a material increase in a net short $ES_F position increasing from … Continue reading

Posted in Uncategorized | Tagged , , , , | Leave a comment