Friday, May 25, 2012

Sandstorms and saliva (updated 9:46 am)

1:25 am (Hawaii) Traded just once on Thursday (small loss in TVIX, a truly wicked bitch of an ETF), just busy running errands, getting things done. No choice. Had to be done. Trading in a thin market that does nothing but eat its own vomit? Yes, I can take a pass on that even if I'm not running around away from from home.

This morning, CME mafia is lower margin requirements. I haven't kept track much of precious metals for months, so if this is a first this year or last, this might be huge news. Remember when CME kept raising margin requirements awhile back? They did it four times in nine sessions and gold spot price cratered.

So, my conspiracy theorists out there, is this an engineered move to get the market rolling higher?

MarketWatch: CME Group cuts margins for gold futures (May 25)
NY Times: In Spain, bank transfers reflect broader fears (May 25)
CBS News: EU summit ends with lots of uncertainty, few plans (May 24)
Bloomberg: Monti says Germany can be persuaded on euro bonds (May 24)

Update 8:43 am Back in FAZ at 26.91. I bought (impulsively) on a spike from 26.72 to 26.93. Soon as I re-entered, it sold off back to 26.75 or so. My stop loss was in place had it gone lower. Now FAZ is back to 26.91. Volume that spiked in the past 30 minutes. Roughly an hour and a half ago, both FAZ and gold rose and held their gain. Banks selling off and gold rising? Unusual.

AAPL also made a run during that time, from 560 to 563, but gave back all of it and more in short time. AAPL fell to 559+ and is now above 561. Thin market, unpredictable, a lot of games being played.

Not planning to hold FAZ over this three-day weekend. There's always the possibility of some form of compromise out of the euro zone. There's also the possibility of ugliness as tension rises in Greece and Spain.

Update 9:46 am Out of FAZ at 26.93 (+0.02/share) for a break-even trade. It ran a bit to 27.13, but I just raised my stop loss instead of selling for a smallish profit. The market is indecisive as ever going into the close.

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