Kudos to MMs

I haven't posted FV in a while. Yesterday it was actually over 1200.

SPX, 1393.6. FV, 1183.51.

That is approximately the $2T on the FEDs balance sheet. This market would implode on FED tightening. Inflation is slowly creeping up, to the point where as usual, they will be too late to handle it. $5 gasoline is nearly a certainty.

Booms and busts. That is how 20th and 21st century American central bankers will be remembered. It is interesting that Europe is taking its medicine NOW, once and for all.

 

03/14/2012 11:55:09 OFV = 1395.34 Buy to Close SPX at 1395.31 Spread = 3
03/14/2012 12:08:59 OFV = 1391.65 Sell to Open at 1396.21 Spread = 3

 

03/14/2012 13:00:26 OFV = -1012.53 Buy to Close SPX at 1392.07

 

03/14/2012 13:14:09 OFV = 1395.19 Buy to Open at 1391.73 Spread = 3

 

I am wondering if I need another VIX tier, < 18 to widen the needed edge in spread between SPX and OFV even more, perhaps from 3 to 4. The system is not over trading for sure so...

 

03/14/2012 13:33:09 OFV = 1391.93 Sell to Close SPX at 1392.15 Spread = 3

 

Is the Fed balance sheet, inflation, etc. in your model?

 

03/14/2012 14:15:37 OFV = 1394.53 Buy to Open at 1391.52 Spread = 3

 

03/14/2012 14:30:28 OFV = 1393.28 Sell to Close SPX at 1392.95 Spread = 3

 

03/15/2012 08:55:35 OFV = 1391.35 Sell to Open at 1394.91 Spread = 3
03/15/2012 09:11:19 OFV = 1394.30 Buy to Close SPX at 1394.44 Spread = 3