The Anything Down is Up Market.

Discussion in 'Trading' started by areyoukidding?, Jul 13, 2005.

  1. Amazing squeezing plays going on in the US now.
  2. Does anyone that has traded more than 2-3 years care to comment on this type of market?
  3. Trajan


    Don't kick a gift horse in the mouth.
  4. Trajan


    Sure, this is more or less one of these weird summer blow off rallies. Part of it has to do I think with expiration on Friday. I've traded through these, they can seem irrational.

    The other thing is that tech earnings were pretty decent in April so this is just a continuation of the May rally. Don't forget that TXN and INTC both guided higher at their mid-quarter updates. I'm long TXN.
  5. Total garbage is all I have to say.

    All the exchanges each have their own gambling centers now. The ''hot plays'' (steel, builders, oil, casinos) and the old favorites (semis, pharma, biotech, boxmakers, etc.)

    Anytime you have so much crap of the same thing to trade, it means things get even worse. Too many chasing too few/none opportunities.

    Why is there a need to offer the same crap in at least 3 exchanges?

    I mean, if you want to buy a homebuilder or all of them, buy the damn stocks! But there's no need to have 3 groups of options crooks fucking around with the individual components at the expense of the idiots who buy these rip-off options! It just ends up in a bunch of manipulated stocks.
  6. I agree with Trajan that expiration is behind alot of this. Also I think there is some big asset allocation trades going on (out of bonds into stocks). I also think there's a mindset making the rounds that tech is underowned and about to make a turn. Whether this i true or not i have no idea but guys like Cramer are fanning the flames and it's becoming self fulfilling.
  7. ===
    Yes, but am not kidding.

    Strong bull market ,SPY, homebuilders for summer time ;
    however DIA, QQQQ are NOT even up year to date.:cool:
  8. I think a lot of it is option related too. Also, a lot of hot money chasing down anything that moves coupled with a lot of algorithmic programs. its hard to know what the heck is going on. one thing i can say is DO NOT buy volatilitu. , sell options, thats what the bigger players are doing (i think).
  9. Trajan


    I'm fucked then, lol, but it all goes away in 2 days. Seriously though, it would be tempting to buy vol with as active as market has been, but this will quickly peter out when Aug comes along. Front spreads and flys here I come. Of course, I probably couldn't resist a few backspreads for a credit.
    #10     Jul 13, 2005