Physicists love to make jokes about their work and it’s implications. It occurs to them that “the eternal maker of enigmas” might also be a trickster.
-Heinz Pagels

In today’s edition of Trader Art, I present the 3rd in my series on the the Ten Year U.S. Treasury Note. For those that do not follow Bond futures, this picture mirrors the ETF symbol $IEF. The first in the series can be found in my post from March 2nd. The second is from my post April 5th.

To explain the relevance of this piece, I quote myself:

“As the mathematics begin to work in my favor, I always adjust my risk.”

Trader Art 3/^+*

Peace

Can an intelligence create another intelligence more intelligent than itself?
-Ray Kurzweill
The Age of Spiritual Machines

1) I bought Bank of America puts for 22 cents. They are now bidding 68 cents. My strike price is 4. I think I’ll sell these for about $3 by sometime next week. Gambler’s ruin has ensued. Where is the analyst that upgraded Merrill Lynch back in September? When Bank of America (BAC) bought Merrill Lynch, they sealed their fate. Natures Math does not lie. It cannot.

2) Prologis (PLD) should be below $1 by the third Friday in April. The tipping point has tipped. The common equity will be wiped away. Nature’s math is irrefutable.

3) A great friend had a breakthrough the other day. He said:

If it is ‘too good to be true’ and it is true, then it’s REALLY good.

Things that are ‘too good to be true’ often are true. The difference is whether you believe or not.

Peace

Luke: I can’t believe it.Yoda: That is why you fail.

Earliest men perceived…their world as largely chaotic, and so do we! There is a difference, however. The cavemen viewed nature as as indifferently rolling unbiased dice; modern men recognize nature’s dice are only slightly but nonetheless purposefully loaded.

-Joseph Ford

From different reference frames there can never be agreement on the simultaneity of events.

-Unknown

Are you readin’ me? Do you believe I do voodoo.

A trade is a trade is a trade. And that trade was quite a trade.

Peace

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