Thursday, March 12, 2009
Everyone is suddenly talking about changing the "marked-to-market" accounting standards. This is upsetting because it's really taking away from the whole Jon Stewart/Jim Cramer war.
11pm tonight! Comedy Central! Don't miss it!!!!! But hey, if you do, no big deal. I'll post the interview with my Friday links tomorrow.
Anyway... so what does this potential change mean? Art Cashin used a great analogy this morning on CNBC to help us idiots understand. I'll paraphrase...
He said, imagine if the dude who lives down the block from you has all sorts of financial trouble and is desperate to sell his house. He's a real shithead. The type of dude who doesn't clean up after his dog. Anyway, because he's desperate, he is forced to sell his house/trailer below market value. In short, the dude gets fucked. But you're cool... you pay your mortgage each month and have a 3467 credit score. Say you want to sell your house. Should you be forced to value your house at the same value as the fucked up dude?
Basically, changing the marked-to-market accounting standards means that no, you don't have to value your house the same way the fucked dude had to value his.
Why am I writing about this here when all you people want are the numbers? Because it pertains to the market action today. Who the hell wants to be short the market and specifically financial stocks if they're about the change these standards? Apparently nobody.
Welcome to the great short squeeze of 2009!
The RO had a great day. Out of 31 traders, 27 were gross positive or 87%. 14 traders made over $1,000 gross and only 1 trader lost over $1,000 gross. I was #14 of 31, very happy considering I was down for 95% of the trading day. Trader A continues his hot streak.
"Lucky Pierre" - Trader A, $32,949 on 434k shares traded.
2. Trader D, $21,756 on 786k shares traded.
3. Trader Z, $19,738 on 532k shares traded.
4. Trader B, $13,446 on 749k shares traded.
5. Trader C, $9,200 on 588k shares traded.
"Chambermaid" - Trader J, -$1,011 on 116k shares traded.
2. Trader F, -$873 on 149k shares traded.
3. Trader Q, -$272 on 3,200 shares traded.
4. Trader 8, -$122 on 44,200 shares traded.
5. Trader G, $48 on 8,200 shares traded.
Stock Market Trend Analysis 3/12/09 from brian shannon on Vimeo.
Contrary to popular belief, trading is not gambling.
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Okay, now to address a small blog issue. I have not published a history or an around the house post in a few weeks. I blame daylight savings.
UPDATE: I would like to point you all in the direction of Trader X's blog this morning. A long time reader of his has passed away and they are seeking $5 donations to help pay for his daughter's college education. Think about what you almost considered paying for "the PPT" and go donate.