Superheroes know their place in the universe and in the pursuit of being good at something do their best to add value.
-Mr. Volatility

Reactions to President Barack Obama’s comments at the Group of 20 summit in Pittsburgh are the major headlines heading into the weekend. Traders are speaking of a potential “shock” in the oil market, warning oil may trade much higher. According to my work, oil and energy are the most vulnerable sectors in the short term. Any response to geopolitical concerns will reflect in a bid for the US dollar, which will pressure oil lower.

Crude Oil Futures - Weekly

US Dollar Index - Weekly

Data point triangulation leads to probability deduction.

As the formula persists, so do the profits.

Though shorting into the trend is never easy, at some point the crowd is to be faded.

RIMM - Oil on canvas 25.Sept.09

Season I, Episode II is live. Before viewing, be sure to turn up the volume.

My mission is timeless. Within it’s timelessness there are cross sections of time.

This cross section takes us back to the 70s. Art is trading and trading is art. My gold trade in the 70s is one of my finest works of art.

You never give me your money
You only give me your funny paper
And in the middle of negotiations
You break down
-The Beatles

The S&P traded around the midpoint of yesterday’s range the majority of the session. The indices bolted higher in the last hour and the S&P futures closed above yesterday’s high and above the  1,000 mark. The high volume ramp in equities in the last hour was not confirmed by the credit market as credit spreads were generally flat.

S&P e-mini 15 minute

Short Squeeze or Ominous Sign?

Gold remains the talk of the town.  Why is gold decoupling from the correlations in observance prior to yesterday? I find it next to impossible (though all things are possible) that gold is breaking out in anticipation of inflation. There are no signs of inflation as far as I can see. To the contrary, all signs point to deflation. If the inflation trade is on, why aren’t interest rates spiking?

Is the move in gold a flight to safety in anticipation of military action somewhere? If  so, why is oil not spiking?

Does someone know something the rest of us don’t?

Technically speaking, gold will not breakout with any conviction until it clears the $1,000 barrier and holds the line. Until then, we may be seeing a good old fashioned short squeeze. Hong Kong is pulling all it’s physical gold holdings from depositories in London. Are reserves sufficient enough to meet physical delivery?

Astrology or Numerology?

The number 9 has been a focus of these pages for some time. In what is termed a new moon, the sun and the moon will come together (The Beatles, Abbey Road, 1969) on September 18th, 2009. 6×3=18 and 6+3=9, which brings me back to 9-9-09.

Season I Episode II

On 9-9-09 at 9:09:09 Episode II of The Adventures of Mr. Volatility will be released. In Episode II, we are going to take a ride on The Errol Flynn circa 1976. Gold made a massive move higher in the late 70’s. I want to tell you a story about it.

Stay tuned.

Come Together

As you are well aware, Disney (DIS) agreed to acquire Marvel Entertainment, Inc. (MVL) for 4 billion dollars—thus ending my own negotiations with Disney regarding a buyout of the Mr. Volatility franchise.

No doubt, this news will come as a relief to many who revel in the exclusivity of Mr. V’s mission; but the Disney name behind me might have been to my advantage. Moreover, it was looking like a decent time for me to partner with Disney and to play a role on their board of directors.

The breakdown in negotiations was particularly regrettable as Disney and I agreed on everything…

Except price.

When Bob Iger tracked me down at that dark nightclub in LA and offered me the 4 billion, I certainly appreciated his sagacious interest and pursuit. But alas, I had to be practical and assure him that the value of the Mr. Volatility franchise is worth at least 35 times that.

He laughed. An incensed but knowing laugh.

I laughed. A dissatisfied but resolute laugh.

He didn’t believe in my value. But did he ever value my beliefs?

So Marvel will now merge with Disney, thus securing over 5,000 Marvel characters and integrating them into their media empire. Sadly, the 5,000 will not include a single superhero for the only earthly territory yet undefended—the financial markets.

Moving forward, I will continue to execute my vision. My mission:

It is my vision that, through meaningful work and collaboration, I can better myself.
Using my inspirations as a guide, I will produce things of importance, and open doors for those that believe in themselves, and build an immense store of energy.