Owner: AprioriTrader URL:http://AprioriTrader.blogspot.com Join Date: Thu, 22 Jan 2009 20:18:37 -0600 Rating:0 Site Description: A blog about investing, economic analysis and trading. Site statistics:Click here
>> The $596 Trillion derivatives problem 2008-12-06 06:48:00 Yes, you read that right. $596 Trillion
. Thats a Trillion, with a T. [ Lets name this number RBN (Really Big Number) :) ]. Now that I have your attention, lets get to the details -
- This is the size of the derivatives market, as reported in the recent report by the Bank for International Settlements , the numbers are thus thus as on Dec '07.
- This $596 Trillion represents the notional value
>> Week-end reading - Buffet & Derivatives and GE 2008-12-06 06:24:00 Oracle of Omaha and Derivatives
:
There has been much talk about Warren Buffet
and Berishire's potential exposure. Someone has made good money while selling credit default swap protection on Berkshire which now costs more than Allstate! : Read here
Clearly, what is being overlooked is :
- Buffet's track record
- Berkshire has gotten $4.85 billion upfront, which he will use for dealmaking. Sweet.
>> Citi Collapse and the bailout 2008-12-06 04:55:00 The CitiGroup Bailout
Week-end reading about the "Too big to fail" CitiGroup collapse and the recent bailout. Vikram pandit has got a sweet deal for Citi:
- Citibank did not see red flags
- Citi;s woes started with the failed Wachovia bid
- Vikram Pandit scores a great deal for CitiGroup . Decide if this sounds should be read as US Tax-payers screwed-over again, here is the bailout summ
>> Week-end Reading : Gold, GE, IMF Outlook, Britain bailout and Steel 2008-10-10 19:23:00 GEs creaky balance sheet Real price of gold soarsIMF financial Global Warming ChartBritain
plans bank bailout worth hundreds of billionsConsumer Credit in USA Drops for First Time in 10 Years : read at WSJ and MW
Steel
: Steelmakers Face Softer Demand : read at WSJ and FTAnd the IMF World Economic Outlook
Oct '08 : read it here Read more:Reading
>> Mark to market to Mark to imagination : blame the doctor 2008-10-01 19:24:00 Yesterday, FASB and SEC have provided clarification on the Fair Value Accounting rule. Its back to mark-to-imagination
times when "no market for a security exists". Of course, a disclosure to investors when financial results are released is great, but:
- investors are in the dark till the quarterly results are out
- it does not change the risk
- perhaps it has something to do with the ba
>> Lessons from 124 banking blowups : IMF Working Paper 2008-09-26 18:49:00 The International Monetary Fund has recently published working paper which counts 124 banking
crises in the last 27 years, in countries like Japan, Argentina and Britain. It introduces and describes a dataset on banking crises, with detailed information about the type of policy responses employed to resolve crises in different countries.
Read the paper here Read more:Lessons
>> Uncle Sam taps piggy bank, borrows to aid market 2008-09-18 00:00:00 WASHINGTON - Where does Uncle
Sam come up with huge sums of money during a financial emergency? Like the rest of us, the government taps its reserves and borrows if it needs more.
The federal government has pledged eye-popping amounts — more than $600 billion in the past year — to bail out, or help bail out, some of the biggest names in American finance. The latest was American International Read more:Uncle Sam
>> Last gasp of a doomed currency 2008-09-14 21:20:00 In the latest example of financial market madness, the recent government “bailout” of Freddie Mac and Fannie Mae has perversely resulted in a sharp rise in the value of the U.S. dollar. If the markets were functioning rationally, the transference of staggering new liabilities to the U.S. Treasury would have been immediately seen as catastrophic for the dollar. Instead the markets have ignored Read more:doomed
[ AAPL Elliot Wave (Update 2) ] 2008-07-13 19:50:00 - 240 is the target
- 2nd wave labeling could be invalidated if the market goes lower and brings down AAPL with it.
-AAPL quarterly results should be out in a few days, that should give further hints on probable direction (Update
d as results out)
Update 2 (08-08)
- 2nd wave appears to be completed and third wave upmove seems to have begun.
- MACD, as well as price moving about 15, 100 & 200 Read more:Elliot
[ Yen-carry is an astounding leverage story ] 2007-03-07 13:20:00 All liquidity starts in Japan, the world’s largest creditor country. When rates go up here, rates go up everywhere. — Jesper Koll, chief economist for Japan, Merrill Lynch These nineteen words form the microcosm of the current global stock market mayhem. Jesper Koll was referring to the universal bogey called the yen carry trade. It’s a business where “trillions” of dollars are involved Read more:astounding
, story
[ Trading Quotes / Learnings ] 2007-02-16 10:37:00 1) Strategy & Basics
"Amaranth once sent chess sets as year-end gifts, inscribed with a quotation from the late grandmaster Alexander Kotov: “It often happens that a player carries out a deep and complicated calculation, but fails to spot something elementary right at the first move.” - From a WSJ Article {PS - I am not sure if Amaranth actually did send these chessboards}
What this Read more:Trading
, Quotes
[ Introducing the iPhone—But Not from Apple ] 2006-12-21 12:18:00 This, and other similar products will impact the Telecom players in more ways than one. Also, remember that google offers free wireless internet for all at Mountain View, CA (This network which covers 11.5 square miles, features 380 access points and cost nearly a million dollars to build went live at 9pm PST on 15th August.). Possible implications on Telco's are several.
{
For the un-initiated Read more:Introducing
, iPhone
, Apple
[ OPTIONS & SPREADS: Trumpets, Lobsters, Champagne ] 2006-10-24 05:47:00 "When I see motors gliding up at night to great houses in the fashionable squares, I journey in them: I ascend the stairways of those palaces; and ushered with eclat into drawing rooms of splendor, I sun myself in the painted smiles of the Mayfair Jezebels, and in that world of rouge and diamonds, glitter like a star. "There I quaff the elixir and sweet essence of mundane triumph, eatin Read more:Champagne
[ Gunning for Stops in the Commodity Futures Trading Pit ] 2006-10-24 02:52:00 It's a few minutes before commodities futures trading closes on The New York Commodity
Exchange one afternoon, all hell broke loose. Another of the many trading games commodity traders play was underway. In the Cooper Futures trading pit, a sudden surge of copper buy orders arrived in the trader pit on the trading floor. Normally such late trading activity barely moves the-futures price. But on Read more:Trading
, Gunning
, Stops
, Futures Trading
[ Options Trading Volume And Open Interest ] 2006-10-15 04:00:00 Price movements in the options market result from the decisions of millions of traders. But there are a number of useful statistics besides price movements that tell you what those other market participants are doing. Here we take a closer look at two factors you should consider when trading options: daily trading volume and open interest.
<!--[if !supportLineBreakNewLine]--><!--[endif]-- Read more:Trading
, Options
, Volume
, Interest
[ Open Interest ] 2006-10-12 11:17:00 Contents of this article – 1) What is Open Interest
2) Discovering Open Interest – Part I 3) Discovering Open Interest – Part II
What is Open Interest 1. The total number of options and/or futures contracts that are not closed or delivered on a particular day.
2. The number of buy market orders before the stock market opens. A common misconception is that open interest is
[ Futures Fundamentals ] 2006-10-11 06:06:00 Contents of this article – 1) Futures Fundamentals
: Introduction 2) Futures Fundamentals: A Brief History 3) Futures Fundamentals: How The Market Works 4) Futures Fundamentals: The Players 5) Futures Fundamentals: Characteristics 6) Futures Fundamentals: Strategies 7) Futures Fundamentals: How To Trade 8) Futures Fundamentals: Conclusion Futures Fundamentals: Introduction
What
[ 50+ Basic Rules for Future Traders ] 2006-10-11 05:51:00 Basic Rules
for Future
s Traders
Follow the trends. This is probably some of the hardest advice for a trader to follow because the personality of the typical futures trader is not "one of the crowd." Futures traders (and futures brokers) are highly individualistic; the markets seem to attract those who are. Very simply, it takes a special kind of person, not "one of Read more:Basic
[ Historical Posts ] 2006-10-09 03:36:00 >> Last gasp of a doomed currency[ Subprime Mortgage Primer in Pictures ][ AAPL Elliot Wave (Update 2) ][ Yen-carry is an astounding leverage story ][ Trading Quotes / Learnings ][ Introducing the iPhone—But Not from Apple ][ OPTIONS & SPREADS: Trumpets, Lobsters, Champagne...[ Gunning for Stops in the Commodity Futures Tradi...[ Options Trading Volume And Open Interest ][ Open Interes Read more:Historical
[ Option Spreads ] 2006-09-22 06:43:00 Contents of this article – <?xml:namespace prefix = o />1) Option Spreads: Introduction2) Option Spreads: Selling And Buying To Form A Spread3) Option Spreads: Vertical Spreads4) Option Spreads: Debit Spreads Structure5) Option Spreads: Credit Spreads Structure6) Option Spreads: Horizontal Spreads7) Option Spreads: Diagonal Spreads8) Option Spreads: Tips And Things To Consider9) Options Sp
[ Options Basics ] 2006-09-22 06:40:00 Contents of this article - <?xml:namespace prefix = o />1. OptionsBasics
: Introduction2. Options Basics: What Are Options?3. Options Basics: Why Use Options?4. Options Basics: How Options Work5. Options Basics: Types Of Options6. Options Basics: How To Read An Options Table7. Options Basics: ConclusionIntroductionNowadays, many investors' portfolios include investments such as mutual funds,
[ Elliot Wave Rules & Guidelines ] 2006-07-08 07:55:00 Elliott Rules
must be obeyed in every detail for a pattern to qualify as an Elliott Pattern (or wave). However, the Guidelines
do not have to be obeyed. The more Guidelines obeyed by an Elliott pattern, the higher its rating or probability of being correct. Impulse Rules: An Impulse is a five Wave pattern labeled 1-2-3-4-5 moving in the direction of the larger trend. It is the most common Read more:Elliot
[ MACD Magic ] 2006-07-08 07:53:00 Introduction Developed by Gerald Appel, Moving Average Convergence/Divergence (MACD) is one of the simplest and most reliable indicators available. MACD uses moving averages, which are lagging indicators, to include some trend-following characteristics. These lagging indicators are turned into a momentum oscillator by subtracting the longer moving average from the shorter moving average. The Read more:Magic
[ Flags & Pennants ] 2006-07-08 06:31:00 Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a mid-point of the move. <!--[if gte vml 1]> <![endif]--><!--[if !vml]--><!--[endif]--> Sharp Move: To be con
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