Friday, April 10, 2026

November 3, 2009

Trader Art - Gold

I was long gold last year. Recently, I noted the yellow metal in a range. Now, I am a raging bull on gold. The new high in gold is akin to the new high internet stocks–EBAY, YHOO, AMZN, et.al. circa 1997.

In the years to come someone will ask me, “what about 2009-2019, what was the hot market then?”

To which I will reply, “Yes. The decade where all that glittered was gold.”

It was just like the 70’s.

And the beat goes on.

Trader Art - Gold - Oil on canvas surrounded by silver frame

Trader Art - Gold - Oil on canvas surrounded by silver frame


Comments (3) Categories: Movies, Options, Precious Metals, Trader Art, gold, markets, media, mr. volatility, silver, trading

November 2, 2009

Halloween Story

I spent Halloween with my client, Pinky Megiston. Pinky is a very famous actress and I consult with her on security issues, both physical and cyber. Beyond all her security gates—to which I know the passwords—I arrived at her front door with a bouquet of orange flowers. I always knock first. If my arrival is anticipated, she is near the door and can hear the knock. If she could care less of my arrival, she’ll be upstairs and away. That’s when I have to ring the doorbell.

By the mere fact that I was ringing the doorbell, I knew Pinky was annoyed with me. It always pays to know your clients—and I know Ms. Megiston extremely well.

The flowers were a good start; Pinky’s cheerleader costume was a nice progression. But then things took a turn south all of the sudden.

“What are you dressed as?” she asked.

“An actor on his way to an audition but who is stopping by the gym to work out first,” I jived.

“You don’t look like an actor. You look like a dork.”

“Actors aren’t supposed to look like actors; they’re supposed to look like the character they are playing.”

“So you’re a dork.”

“No, I’m an actor.”

“One day you’re an actor, the next day you’re a rapper,” she said. “You know I don’t be datin’ rappers.”

“I got my SAG card, Baby, I’m an actor.” I quoted like I was Common.

She turned around and laughed, and we ended up at a haunted mansion, where we turned out the lights, on our Halloween story.

Halloween

Halloween


Comments (0) Categories: Hollywood, media, mr. volatility

October 31, 2009

Volatility Radio

No stranger to disguise, Halloween is one of my all time favorite holidays.

My favorite Halloween theme song is none other than Horror Movies, by the Bollock Brothers.



And what would Halloween be without at least once hearing Bela Lugosi’s dead?



I’ll definitely be out tomorrow. After dark.


Comments (0) Categories: volatility radio

October 30, 2009

Market Rap 30.October.2009

Today’s trading was a flight away from risk–risk off. US equities were weak with the S&P 500 (SPX) off 2.82%, the Dow Jones (INDU) Industrial Average down 2.51% and the tech heavy Nasdaq Composite (COMPQ) down 2.5%. The Volatility Index traded higher by 24% at 30.71. On the Nasdaq, there were 4.2 decliners for every advancer. On the NYSE, 6.5 decliners for every advancer. Volume was heavy all around.

S&P 500 - Daily

S&P 500 - Daily

Volatility Index (VIX) - Daily

Volatility Index (VIX) - Daily

The US Dollar index closed higher by .62% at 76.39, Ten year Treasury futures traded higher by to close at 118 19/32 or up .76%, IEF closed at $91.99.

IEF - iShares 7-10 Year Treasury

IEF - iShares 7-10 Year Treasury

Below are a few of the intraday charts.

US Dollar Index - 15 Minute

US Dollar Index - 15 Minute

Crude Oil - 15 Minute

Crude Oil - 15 Minute

ES S&P Electronic Mini

ES S&P Electronic Mini

Citigroup: He Said, She Said

I couldn’t help but reach for puts in Citigroup (C) today. Analyst Mike Mayo was quoted as saying that Citigroup will write down $10 billion of deferred tax assets, representing 10% of Citigroup’s tangible equity. Citigroup quickly responded they had no idea how the analyst was making those calculations. No matter if Citigroup learns how to calculate or not, their common stock is likely heading south of $1 within the next 6 months to year. I am short the big C–the former largest bank in the world.

Citigroup - Daily

Citigroup - Daily

The Shimmer of Gold and Silver

Yesterday, I noted that my stance had changed on the precious metals. I am positioned to take advantage of a move higher in gold and silver.

Gold was weak at the equity open this morning, but strengthened throughout the day to close near unchanged. This is evidence of the strength in gold to come. I am long select gold miners and maintain my stop below yesterday’s low. Credit default swaps on Japanese sovereign debt are rising, and the Yen is outperforming against the US Dollar versus other major currencies including the Euro (FXY), the British Pound (FXB) and the Aussie Dollar (AUD).

The charts below show this outperformance graphically. It is my view that this relationship will eventually lead to US Dollar weakness, and therefore strength in gold.

Gold - Daily

Gold - Daily

FXY - Japanese Yen

FXY - Japanese Yen

FXE - Euro

FXE - Euro

FXB - British Pound

FXB - British Pound

FXA - Australian Dollar

FXA - Australian Dollar

Next week, same time, same place. And the beat goes on.


Comments (1) Categories: $VIX, Banks, Dow Jones Industrial Average, Forex, Market Rap, NASDAQ, Options, Precious Metals, S&P 500, Treasuries, credit markets, dollar, energy, gold, oil, silver, trading, volatility, volume

Depression-Era Bear Market Rallies (Dow 1929-1932)

Are we still in a bear market rally? You decide. This chart is courtesy of Chart of the Day.

chartoftheday


Comments (0) Categories: trading, trend
« Newer Posts — Older Posts »