May 17, 2010 – The Real Cause of the ‘Flash Crash’

Featured Trades: (SPX), (YCS), (TBT) 1) The Real Cause of the 'Flash Crash.' When I boarded my plane in San Francisco on Thursday morning, May 6, the Dow was down an uncomfortable, but tolerable 150 points. When I arrived in New York that night I was greeted with headlines screaming 'CRASH: DOW PLUNGES 1,000.' I was not surprised. In a letter sent to my premium … [Read more...]

May 7, 2010 – There’s a Massive Global Risk Reversal Going on

Featured Trades: (GLOBAL RISK REVERSAL)   1) There's a Massive Global Risk Reversal Going on. The Gulfstream is fueled up, the flight plan filed, and my pilot is carping about missing our IFR clearance slot, so I'll just quickly dash off a few words here before I take off for the Big Apple. They are rioting in the streets in Athens, and bankers are being burned … [Read more...]

May 6, 2010 – Yesterday, the lemmings discovered the Law of Gravity

  Featured Trades: (SPX), (BP) 1) Yesterday, the lemmings discovered the Law of Gravity,and the plaintive squeals of the dying mammals could be heard throughout the financial markets. European finance ministers must be depressed that their $140 billion bailout of Greece only bought them 24hours of grace in the eyes of investors. The European finance ministers … [Read more...]

May 5, 2010 – The Leverage Window Just Opened Wider

  Featured Trades: (UBR), (UPV), (UMX), (UXJ), (TMV) 1) The Leverage Window Just Opened Wider. Just as the public debate on risk control gets underway on Capitol Hill, a number of instruments have been launched that will allow unsophisticated retail investors to ramp up their leverage, big time. It's like handing out free fireworks right after your hometown … [Read more...]

May 4, 2010 – My Square Root Scenario is Happening

  Featured Trades: (Q1 GDP) 1) My Square Root Scenario is Happening. The 'square root' scenario that I have been forecasting for the US economy is coming to pass. On Friday, the Commerce Department's Bureau of Economic Analysis confirmed that the US grew at a 3.2% annualized rate in Q1, compared to a 2009 Q3 figure of 2.2%,  and 2009 Q4 growth of 5.6%. What's … [Read more...]

May 3, 2010 – The Aussie Crosses are On Fire

Featured Trades: (AUSSIE/EURO CROSS), (AUSSIE/YEN CROSS) 1) The Aussie Crosses are On Fire. In the last few days, two of the key foreign exchange cross trades that I have been recommending this year have exploded to new highs. They include the Aussie/yen cross at AUS$0.874 and the Aussie/euro cross at AUS$0.705 (click here for the call). These crosses involve going long … [Read more...]