Monday, 31 October 2011

Bund and S&P 500 analysis and levels

A look at some potential key levels in the Bund and S&P 500.

MF Global files for bankruptcy

As widely expected MF filed for bankrupcy. What this means for there assets is not yet known, as rumoured bidder Interactive brokers is understood to have bailed out of the running.
But whilst many traders have been affected myself included, those at the top will have a little to smile about. Based on the MF Global Proxy statement filed in August 2011, there are rumors that the now defunct Primary Dealer will pay Jon Corzine a severance of $12.1 million. Just liek Dick Fuld paid his execs 100 million just before Lehamn went down, its utter crap but its the way it works at the top.

MF Global pending bankruptcy

Much of the talk in the financial world today has been the immanent bankruptcy of MF global. One of the largest brokerages in trouble because John Corzine the former Goldman Chief starting prop trading going long on European Sovereigns, whilst pretty much every other bank is going short of them. When we had the Greek haircut, that resulted a pretty big loss on their books, and now its a real trouble.
It is said that John Corzine himself undertook a lot of the trades.
Its troubling times for myself and many others prop trading as many of us clear through MF global so I am hoping for some sort of take over or something. Talk is that it could be taken over by Interactive brokers, but their shares remain halted pending an announcement.
Well hopefully they get bailed and John Corzine gets what he deserves!

Thursday, 27 October 2011

Eurozone Bailout

In essence the Banks agreed this morning to take half of what they are owed by Greece as part of a deal brokered by European leaders to solve the continent's debt crisis and prevent it from igniting a new global financial meltdown.

The reaction is what you would expect from news like this, we see Bunds falling 150 pips, euro up above 1.40 spreads widen, and Stocks going through the roof.
It looks like we are going to reclaim 12000 again in the DOW, which marks a pretty significant turnaround for the month given we started the month with the DOW trading mid 10000s!

Going forward there no reason for the Stocks to not keep rallying, but quite frankly its hard to think that this is it, Problem solved, although short term I think it seems that way. Listening to bank strategists some are predicting another 10-20% up from here, and looking at the momentum in these markets I can't say I can disagree with them. But as always got to keep tabs of new news coming out.

We are awaiting US GDP so this will set the tone for the rest of the session.

Thursday, 20 October 2011

Friday, 7 October 2011

Post Nonfarm Payroll reaction

ECB yesterday, Non Farm today, BOE Quantative easing as well, have led to some big moves in the market. We have been rallying hard the last few days as optimism grows that the worst might be behind us, as ECB has put in measures to shore up bank capital as well as positive data during the weak. We have had stronger Manufacturing PMI, as well as better job numbers out of Canada and the US.
Watch below as we analyse some key levels and where the market may go going forward.

Thursday, 6 October 2011

RIP Steve Jobs

Today marked the death of a true game changer in this world. His legacy will live on always through his company and his the great products he created.
May his soul rest in Peace.

Short Sterling spreads nudge higher on hawkish Fed; Walmart blowout

As most must know trading Short Sterling is a bit of a bore, and has been for a while. Having managed to get out of my 2 month hold before,...