Thanksgiving

by Larry Levin

Everyone at AvidTrader is wishing you all a wonderful day off from trading with a Happy Thanksgiving.

For us hardcore traders, however, someone pulled a fast one on us. While we were enjoying our holiday in the USA, the rest of the world went and sold-off equities in a big way. At the time of this writing Dow futures were down -200 and the S&P500 -25.00! I wish they would have waited for us.

On Thanksgiving we read...LONDON (MarketWatch) -- Fears of a potential sovereign default by Dubai roiled financial markets Thursday, sinking stocks in Asia and Europe and pushing up government-bond prices as investors sought safe havens.

Dubai late Wednesday said it would restructure Dubai World and announced a six-month "standstill" on repayments of the state-run wide-ranging conglomerate's debt. Ports operator DP World and its debt is excluded from the standstill plan.

Analysts said Dubai's woes were a blow to sentiment, serving as a reminder that potential trouble spots remain.

So the oil-rich state of Dubai cannot pay its debt. Like the US, Dubai went on a spending spree over the past several years and it has caught up with them. But not us thankfully. While Dubai is in financial straits, the rest of the world continues to extend us credit. While Greece is on the verge of financial collapse and about to bring down several German banks with it, the rest of the world refuses to call in our marker or pay off our credit card.

Regardless of the colossal size of US debt and sickeningly profligate spending of Congress, the world allows it to continue with our IOUs backing the debt...or "promise" to pay it back.

And for that global gullibility we must all gives "thanks" on Thanksgiving.



Previous Day's Trading Room Results:

Trade Date: 11/25/09

E-Mini S&P Trades*
(before fees and commissions):


1) No "Secrets" trades filled today.

2) Algorithm positions (2)

3) "Reading the Tape" positions (6) ...combined Secret's, Algo, & "Reading the Tape" total...+4.75



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