Friday, April 3, 2009

TAPE READ ON FRIDAY from JSR9900

I read it right up the wazoo kli. Volume was nil, nothing was moving. XLF and a portion of the fin shares were printing down. unemployment news came out, service sector news hit, and where you expected a short, the fins started to move. I was watching FAS having scalped a 6.40 entry against a 6.55 exit. The BAC dividend announcement hit and the rocket took off to the moon with very few willing to sell it. At the time, FAS was trading 160MM shares - more than BAC. Sort of a WTF? FAZ was trading 17.40 - 17.50.Then all hell broke loose. FAS went for a new hod a couple of times and looked like it was going to double top for the day. There was a regression. PRU started climbing out a hole. JPM picked up a bid.XLF went from down 0.06 to up 0.25 and then some. Fins ran green into the close. FAZ got hammered. XLF puts got hammered. During the final hour of the tape, FAZ, having been sold for a few bars on the 5-min, decided to grow a pair of legs and put up a new HOD on several bars. Frankly, I was caught like a deer in the headlights. I was wondering if the new short rules caused covering of shorts against long index shares and fin shares direct. I also pondered the idea that the liquidation or partial redemption of a net short fund(s) could cause a rally. I also pondered the notion of the fin sector being pumped up before an equity dump - which will be necessary for a cash offset to writedowns and TARP paybacks. From my vantage point, I'm still sitting here dazed and confused trying to figure it out.

6 comments:

  1. Thanks kli, my stomach hurts...

    Tornvelour

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  2. I'm a die-hard atheist, and today I started praying...

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  3. kli, what do you think about the very low volume on financials?

    was the closing runup the final pump before the bottom falls out?

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  4. Hard to fight against some form of market manipulation. This market seems to have an external forces pushing it higher. mmmm

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  5. All I will say is we are in P2 and I said NO WAY I get caught heavy short in this big wave...I seldom say what I own quantitatively but I had excactly 800 shares of SRS ..that is a small holding for my portfolio when I took a nap at noon....and woke up 5min befor close...OMG...dirty baastids...8G on a small position sucks.......added 500 AH...wont tell u my shares very often cause people follow that BS

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  6. That is the best read on a tape I have ever witnessed. The power of mom and pop missing out on a rally is huge. If we get a pullback soon I will sell longs and look to reload heavy long. If the market rallys early this week hard, then I will sell longs and start getting short mid to heavy. We will see

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