Recent content by medallion way

Here is a pice from J. Lander of ProC capital that just about encapsulates the situation starting from Feb to now:- "We believe markets are still overly optimistic and are failing to properly consider the ongoing challenges. As such, the current bounce may prove to simply be a bear market rally...

Major share US indices rallied 4%+ Wednesday while Bonds sold off. A Congressional spending package for coronavirus control, the rise of Joe Biden and stronger than forecast data lifted US optimism and sent stocks soaring, Europe followed with no particular reason of their own and Asia open...

Something not often seen: The Federal Reserve cuts its key interest rate by half a point and the stock market plunged more than 900 points at one point. A classic case of buy the rumour sell the fact. Jim Cramer said "This latest cut appears to have created more panic rather than calm, I'm now...

.... indeed, I'm calling it a night... got all my hedge orders in place so happen what it may... if by chance I log in tomorrow and see the DOW at 29,000, my a/c will be 542k better off, that will be my dream for tonight... a chart showing a vertical line going from 25,550 to 29,000. (sorry...

900pt swings on the DOW but not so easy to pick the pivot points.... I go for the bigger picture..., fewer trades, less stress, bigger pau-outs

the best hedge is when you hedge rather than STOP so one needs to allow a certain loss before entering the hedge a capital buffer is necessary. In essence, as long as the movement is within expectation, capital is used, the hedge is entered when movement exceeds expectations.

Well, I partly agree as you can loose if you buy too early and blow the account, trading is as much about capital preservation as it is about making profits. The DOW will eventually always make new highs (a 100 year of history tells you that), the "brave" part is... are you sufficiently funded...

Speaking of which, why is EU cash market opening an hour before UK since last week? Is this part of BREXIT or just my provider changing things without notice?

Advice for the brave

I was basing the prediction on the fact that China released data over the weekend that gave hard evidence of the negative impact of the COVID-19 virus, I was expecting growth fears would dominate trading in Asia... I was wrong! markets never fail to surprise, however, I still think a 25,100 HSI...

I'm anxiously waiting for the HSI to open (expected to gap down by 4%), I got some 29k shorts that have a close target at 25,100, a 4k pt payday per contract will be welcomed amongst the carnage added: That's a surprise! HSI opened almost +2%?? I was wrong by 6%!

?? I think you need a new provider, one that tracks aftermarket as futures trade 22x5, if your provider does not track these, you are in for a masty gap. Dow futures fell to 24,868 within seconds of futures opening at GMT 22.00 (note that Mid-east markets are open on w/e so even the futures have...

Just the small ones that can be manipulated by a few (the top 3 companies in the S&P500 could buy the whole ASX and still have change left over, just to emphasize how small and easily manipulated the ASX is), and don't think ASIC cares to stop the practice... once in a blue moon they'll get some...

It depends on the purpose of the hedge... short term hedging (such as to protect account bal. during a flash movement) inverse correlating instruments are good, especially the VIX. for longer-term hedging or to recover a loss I will simply scale and enter an opposite trade in the same...

I would not be counting chicks yet, Fri had a rally at the close which was unusual for a Fri and imprudent under the circumstances, Powel spoke and I guess Fed anticipated action was the cause of the rally by those players in the mistaken belief that the Fed has their back and so are oblivious...