Oct

10

What a Day! What a Week! What a Month!

Teresa Lo @ 4:07 PM | | 1 Comment 

Each Friday, I calculate the preliminary allocations for our satellite portfolios based on information available at 3PM Eastern, but today’s market mayhem made it virtually impossible to come up with numbers that would come close to the final set.

Instead, all members received an email containing this part:

In any case, most of you are now in cash following the September 25 Special Report so there is no need to rebalance anything. My suggestion is to turn off the TV and go outside. Those of you that are hedged using the method outlined in the September 21 article on inverse funds should maintain the positions as they are. We are not taking off any hedges today.

In case you are wondering, friends and family I trade for are doing fine. The zen-like strategy of diversification amongst all major asset classes coupled with classic hedging using futures contracts (which my young masters of the universe quant friends thought was just “too plain vanilla”) is working as expected, like clockwork. Lesson learned — by them that while K.I.S.S. is not elaborate enough to justify charging 2 and 20 fees, it is definitely in the client’s best interest.

And this too shall pass,

Teresa and Pete

Videos of the Week

There were two excellent videos, both from today:

  • Market Mavens [WATCH VIDEO]
    Searching for investment opportunities, with Bill Spiropoulos CEO CoreStates Capital Advisors; J.J. Burns President, JJ Burns & Company and CNBC’s Bill Griffeth & Sue Herrera.
  • LEH CDS: Judgement Day [WATCH VIDEO]
    How to play the CDS market, Tim Backshall, Credit Derivatives Research and CNBC’s Bill Griffeth, Sue Herera, Michelle Caruso-Cabrera & Dennis Kneale.

Pattern of the Day

After the close yesterday, members were alerted to a certain pattern on the 65-minute chart of the S&P 500 index.


65-minute S&P 500 ETF Chart

It was nasty all right, but it was an Elliott Wave 4 running triangle followed by the spike down. Would have been nice to close above the apex, but the bell rang and that was it.

Questions and Comments

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  1. Dave M on October 10th, 2008 4:08 PM

    Once again you are to be congratulated!!!