Trader’s Narrative

Talk about deleveraging. Markets all around the world are getting spanked. Brazil hit the circuit breakers after a 10% drop. Argentina’s MERVAL dropped 18%. Iceland is basically a very large crater by now.
But the real contagion that no one is talking about is the busting of the seaweed bubble:

Former Federal Reserve head honcho Alan Greenspan said today that he was “shocked” at the breakdown of the financial order.
Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity — myself especially — are in a state of shocked disbelief.
Shocked, SHOCKED! I tell ya! … which inevitably gave me […]

When the market started to take a dive, the vast majority of the usual technical indicators started to blink green, one by one. The one that didn’t and has arguably continued to refuse to cooperate with a bullish scenario is the options market. And more specifically, the difference flavors of put call ratios. First I’ll […]

When you have a comedy show like The Colbert Report mention an esoteric indicator like the CBOE volatility index… you know that things have run their course:

The picture is from Monday’s show in which Stephen Colbert riffed off the “fear index” and mentioned that it “is at an all time high” He then said, “Even […]

Usually I have trouble parsing Cramer’s advice. But just a while ago he was surprisingly lucid. I’m referring to Cramer’s call for people to take out money that they would need in 5 years’ time. Remember that? Here it is again, in case you missed it:

Well, it turns out a very reliable indicator is now […]