ConMan - 07 July 2009 02:09 PM

willrob - 07 July 2009 02:08 PM

ConMan - 07 July 2009 01:58 PM

FWIW, 885 is the 200 dma on the S&P.
edit: fixed the “220” dma

Broke through to the downside, and now all hell is breaking loose. I exaggerate slightly. Some parts of hell sem to be holding up quite well.

Yeah, the medical portion of Hell is still kickin’. Humana up nearly 5%.

Yesterday something like 70% of monies were running into healthcare. Everybody is basically afraid of the liquidity trap (a summary of every one of Mayor Quimby’s fears).

However, I don’t care about that because I’m focused on the arbitrage play in the financials.

Eric Landstrom - 07 July 2009 03:10 PM

ConMan - 07 July 2009 02:09 PM

willrob - 07 July 2009 02:08 PM

ConMan - 07 July 2009 01:58 PM

FWIW, 885 is the 200 dma on the S&P.
edit: fixed the “220” dma

Broke through to the downside, and now all hell is breaking loose. I exaggerate slightly. Some parts of hell sem to be holding up quite well.

Yeah, the medical portion of Hell is still kickin’. Humana up nearly 5%.

Yesterday something like 70% of monies were running into healthcare. Everybody is basically afraid of the liquidity trap (a summary of every one of Mayor Quimby’s fears).

However, I don’t care about that because I’m focused on the arbitrage play in the financials.

Indeed.  When someone can show me how any of this liquidity can translate into sustained wage and economic (ie manufacturing) growth, I’ll concede the point.  until then, I think Ben is not only wasting his time but making everything much much worse.

Wednesday

R4         150.25
  midpoint   148.00
R3       145.75
  midpoint   143.50
R2       141.25
  midpoint   139.79
R1       138.33
  midpoint   137.54
PP       136.75
  midpoint   135.29
S1       133.83
  midpoint   133.04
S2       132.25
  midpoint   130.00
S3       127.75
  midpoint   125.50
S4       123.25

Everyone is conceding as we speak Mr Mayor.  Time to lay down and give in to our masters we serve.

Financial arbitrage Mr L? 

Market inefficiencies run in milliseconds nowadays where institutions use speed of light computations using super-fast real time high-volume information with near zero transaction costs to exploit price discrepancies before they can be seen by the investing public.

Is there a special way to execute financial arb using a longer term time frame that is already priced in?  Do we short the financial sector and long health care based on money flow?

I am very confused by this market

Any help/insight is appreciated.

NOOP - 07 July 2009 10:24 PM

Everyone is conceding as we speak Mr Mayor.  Time to lay down and give in to our masters we serve.

Financial arbitrage Mr L? 

Market inefficiencies run in milliseconds nowadays where institutions use speed of light computations using super-fast real time high-volume information with near zero transaction costs to exploit price discrepancies before they can be seen by the investing public.

Is there a special way to execute financial arb using a longer term time frame that is already priced in?  Do we short the financial sector and long health care based on money flow?

I am very confused by this market

Any help/insight is appreciated.

Preferred shareholders are offered 7.308 shares of Citi’s common for each share of eligible share of Citi preferred. C-PP, C-PM, and C-PG are all eligible. While the exchange rate is fix the value of Citi’s common stock is not fixed. Hence the arbitrage opportunity. Consider C-PG which is currently trading at $17.13 and divide by 7.308, the current cost of C common via preferred is $2.344 (around 30 cents less than current price). Additionally, C-PG has a dividend which will not be eliminated. If C common falls below the fixed exchange rate, preferred holders can choose to not exercise and continue to receive the dividend which is a bit over 11% yield. 

We have until July 24 to take the tender but I think many people are waiting for D-day when both BAC and C report on the 17th.

Watching Uncle Art’s 877 level on the S&P. He mentioned on Monday that it would be an H&S confirmation.

edit: fwiw, we just broke through the May 15 low of 878.94 and the May 4 low of 879.21.

Someone really wants to crash this market.

Back on May 14 (the last time we were in this range on the S&P) Art Cashin said “We need to watch 877, then 862…if they break through that, we could go back to 820.”

So many people have been talking about this head an shoulders on the S&P I would not be at all surprised to see it broken briefly, then a big bullish surge arrives out of nowhere. The shorts have been piling on in anticipation, and have had plenty of time to do so. Who’s left to push it lower still? It’ll only take someone like Goldman to turn their programmed trading system back on and drag this thing up by the bootstraps as the shorts get squeezed.

As for AAPL it popped below a retracement level at 134.63 and then recovered. To me that is a sign the bulls have not given up the fight just yet.

litespeed - 07 July 2009 08:18 AM

cramar - 06 July 2009 12:04 PM

Mayor Quimby - 06 July 2009 10:39 AM

I like FAZ.

Me2!

Anyone trading FAZ/FAS should be aware that they are reverse splitting on Thursday.

Thanks for the heads up.

Can anyone speculate on what could happen? For example the 10/1 split on FAZ would mean 1000 shares become 100 and the price of $5.50 would be $55.00 I assume. But other than that, what can happen? Volume would go down by a factor of 10?  Volatility would decrease because less volume?  What else?

Is that a cup and handle forming on AAPL?

wheeles - 08 July 2009 11:12 AM

Is that a cup and handle forming on AAPL?

Not exactly. It’s almost been completely negated. However, if we get a decent break above 136, then 137 is quite probable.

Purchased more BAC moments ago.

Purchased BAC again. 

Ooh la la!

You know over the past 10 months I’ve watched people get knocked out of the market, lose interest, and lose their jobs but what a sad day it is that the once mighty AFB has a registered user of one person online while the market is open. 

Even so, all downward trends come to an end and bend. May all of your fortunes turn around. 

“They” let the pressure off and the DOW and Naz are now positive.