Boring Part 2

 

 

by Larry Levin

Unlike Monday's open that had a large gap that fizzled instantly, Tuesday was equally without sizzle.  It wasn’t quite as slow as Monday but was close.  An early attempt at a rally was stopped, which then led to a very - very -  slow drop.  In a word it was: Boring.
 
http://www.youtube.com/watch?v=i8LOLswfTkQ
 
Volume was low again with only a slight increase in volatility.  No news mattered – just what the currencies were doing again.  If the US$ goes up, equities go down.  
 
Thomas Hoenig, Kansas City Fed Bank President, made a few remarks Tuesday.  From Bloomberg we read...

 "The consequence of expanding the safety net to an ever- increasing range of activities is to invite a repeat of our most recent crisis.  "Hoenig said today in a speech in Philadelphia. "With separation of activities, risks will remain in the financial system, but unlike the past decade, this risk will be priced more correctly and failure can be resolved more equitably."
 
"Banking organizations that have access to the safety net should be restricted to the core activities of making loans and taking deposits and to other activities that do not significantly impede the market, bank management and bank supervisors in assessing, monitoring and controlling bank risk - taking,"
 
Restricted to what banks used to do?  Because it makes sense, if one doesn’t want to repeat the financial disaster of 2008, it will be completely ignored.  
 

 

 

Trade Date: 5/24/11

E-Mini S&P Trades*

(before fees and commissions):

1. No “Secrets” trades filled.
2.  Algorithm positions (4)
3.  “Reading the Tape” positions (3) …combined Secret’s, Algo, & “Reading the Tape” total… -3.25

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