Market timing
The market, Paul Desmond from Lowry’s and charts
Tuesday, January 29th, 2008Stocks found it exceedingly easy to go up. All but one of the eight Important Averages advanced more than 1 %. That is strong price momentum. With all those stocks rising, overall volume was down in all 4 Major Averages. The financials were the best performing sector of the day. Generally, rate cuts […]
Bill Gross: V shaped recovery too optimistic
Wednesday, January 23rd, 2008When browsing through some old files I found that article from Bill Gross from 2001, where he touched on the issue of why yesterday’s (1st capitulation-like day) recovery might not be followed by a quick V shaped pattern (rally).
“ Extreme optimists believe in a V-shaped recovery, implying a quick return to the good old […]
Picking up the Bottom?
Friday, January 11th, 2008Picking up the Bottom?
In a letter to clients on January 4, 2008, a hedge fund guru Laszlo Birinyi noted that based on current models the trading range for the S&P 500 indicated a bottom at the 1378 level. I however, remain more cautious. Worden Brothers on other hand started hinting that ” I […]
How to hedge earning volatility (1Q08) with options
Monday, January 7th, 2008Goldman’s derivatives strategist recommended A FEW SMART, sane calls for hedging:
Buy options: SPX Feb-08 OTM puts to hedge Q1 earnings the potential earnings headwinds could spell more volatility in the near-term. Buy SPX Feb-08 3%-5% OTM puts to hedge potential earnings misses and cover the January FOMC meeting.
Sell VIX Feb-08 puts to […]