The S&P 500 traded in a narrow 10 point range today. The pit was very quiet. As previously chronicled here, the big money has been ominously quiet during this equity run up.

The bond has been trading in a narrow range of late. However, it is trading at the high end of that range as I write.

ZN_F 120 Minute Chart

…Meanwhile, back at the office, I continue to ponder the question, When will the FED stun the world? While there are no certainties in life, only probabilities, it is the opinion of Mr. Volatility that it will be sooner, rather than later.

Given that I am positioned to profit from the wild move in volatility that will occur, I will continue to post any news or opinions I feel relevant.

Whenever it happens, the profits will be immense. The FED needs rates lower, and therefore, Treasuries must go higher. All paths lead back to that central theme. The FED needs something to happen. They have very powerful discretion at their disposal. Don’t fight it. Ride along. All roads lead to Rome.

The other themes that will work are including, but not limited too: i) A massive move higher in Gold and Silver ii) A massive move to zero for many REITs and iii) A massive move lower in the Euro $EURUSD.

Peace

Sometimes when I am listening to someone, I am recording what they say.

One Day I recorded Randy Pausches’ Last Lecture.

Now, sometimes, when I perceive that someone is trying to put my dreams on hold, I replay some of the things Randy told me.

Thanks Randy.

We cannot change the cards we are dealt, just how we play the hand. If I don’t seem as depressed or morose as I should be, I’m sorry to disappoint you.

Experience is what you get when you didn’t get what you wanted.

When you see yourself doing something badly and nobody’s bothering to tell you anymore, that’s a very bad place to be. Your critics are the ones telling you they still love you and care.

It’s very important to know when you’re in a pissing match. And it’s very important to get out of it as quickly as possible.

You can’t get there alone and I believe in karma.

Don’t complain; just work harder.

Be good at something. It makes you valuable.

The brick walls are there for a reason. The brick walls are not there to keep us out; the brick walls are there to give us a chance to show how badly we want something. The brick walls are there to stop the people who don’t want it badly enough. They are there to stop the other people!

The best way to teach somebody something is to have them think they’re learning something else.

Do not tell people how to live their lives. Just tell them stories. And they will figure out how those stories apply to them.

Did you figure out the head fake? It’s not about how to achieve your dreams. It’s about how to lead your life. If you lead your life the right way, the karma will take care of itself. The dreams will come to you.

-Randy Pausch
The Last Lecture

Shortage Of Short Paper (Zero Hedge)

“All we need now is illiquidity in the bond market to follow the joke that equity liquidity has become to put a cherry on top of this utterly broken market. Either way, this will make it even more fun for the Fed to follow through with its QE [Quantitative Easing] strategy.”

QUESTIONS ABOUT GOLDMAN SACHS’ ROLE IN MARKET (New York Post)

“SOMETHING smells fishy in the market. And the aroma seems to be coming from Goldman Sachs.”

“According to the latest numbers put out by the New York Stock Exchange, Goldman did twice the number of so-called big program trades during the week of April 13.”

Mr. Know-It-All on Conspiracies (Wired)

There’s hope, but your cogent arguments are unlikely to hasten any shift in your brother’s thinking. In fact, your strenuous efforts at dissuasion could end up reinforcing his views.

Peace