Tuesday, May 25, 2010

2pm autopilot...

Someone asked today if that was me on my bike today around noon in the midst of a market meltdown. Of course I was, the market shot lower on the open and then pinned so it was clear that nothing was going to happen until we crossed the 2pm magic hour at which time the autobots would either flash crash the market or stair step the market back to unchanged. On cue, the market rallied almost back to unchanged and all is right with the world.

Asia has opened up strong on the heels of our rebound but they are starting to show some cracks.

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What's an oil leak look like when it goes KABOOM?

This quick link shows some footage of the BP spill from about 6pm on Tuesday. Thankfully, it appears BP was shamed into continuing coverage of their top kill attempt this week. Let's hope it works.

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The most interesting trade of the day: The most active strike price in the Dec 2011 S&P 500 was the 50 line. That's not a typo, someone is basically making a bet that the US is out of business by the end of 2011 because it's a long way from today's close of 1074 on the S&P to 50.

It takes guts to bet on a 95% decline in the stock market over the next 18mths.

Cheers!

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