• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

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

Diary

 

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 might as well drown themselves in the seas of red on my screen. Only the Vix and British Petroleum (BP) are green. How perverse. Oil down$3.50! Boiiing! Silver off a buck! Kaboom! The ten year Treasury at 5.59%! Pow!It also looks like the oil spill in the Gulf of Mexico could make a sizeable dent in US Q2 GDP. You all know that I have been negative on equities for a while now (click here for my piece on buying cheap downside protection). The global nature of the sell off across all asset classes also came as no surprise (click here for that prediction). The flight to quality has given another shot of adrenaline to the dollar against my core shorts, the yen and the euro,both of which broke down to new lows for the year today. Most fascinating is that my April surprise came through too (click here for the report). The withdrawal of the Fed at the beginning of the quarter as the sole purchaser of real estate debt in the market, led not to a crash in bond prices, but a huge six point rally, sending yields into the dump. With the coming collapse of the Treasury market the new mantra among traders, it turns out everyone was short! Once again, Shanghai's status as a canary in the coal mine for all global markets is reaffirmed (click here for the explanation). Where am I going to buy the dip first? Shanghai.The hedge fund managers who saw all of these complex pieces fitting together and positioned for it made multiple killings. Those who didn't, have joined their furry cousins at the bottom of the cliff.

S&P 500 Large Cap Index

LemmingDead2.jpg picture by madhedge

A Dead Lemming, RIP

 

 

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 madhedgefundtrader@yahoo.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png madhedgefundtrader@yahoo.com2010-05-06 02:00:492010-05-06 02:00:49May 6, 2010 - Yesterday, the lemmings discovered the Law of Gravity

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: May 5, 2010 - The Leverage Window Just Opened Wider Link to: May 5, 2010 - The Leverage Window Just Opened Wider May 5, 2010 - The Leverage Window Just Opened Wider Link to: May 7, 2010 - There's a Massive Global Risk Reversal Going on Link to: May 7, 2010 - There's a Massive Global Risk Reversal Going on May 7, 2010 - There's a Massive Global Risk Reversal Going on
Scroll to top