The FED Hates Short Sellers...

Wow. Well, so I covered my shorts and got long. Party on.

HPT Leaves VO For "Personal Reasons"

I'm not going to do a huge public "firing" of HPT in the mold of what "the Fly" does over at his site.

I'll just say that the intense pressure and whirlwind competitiveness of the VO finally caved this man psychologically, thereby causing him to blow up his account.

HPT leaves on amicable terms. When asked by a reporter why he was leaving he said, "to spend more time with my family."

Everyone at the VO wishes him well and hopes that, should we need a token futures trader again, that he will rehabilitate his account and be ready to do battle again on the "killing field" that is the VO.

Godspeed, HPT.

New NYSE Fees

Simply put, these fees could be a "gamechanger."

Here is the press release detailing the new fees that go into effect on October 1st. They were brought to my attention by "Jawbreaker" via the comments section of this post.

Here's the thing I don't quite understand. If you route your order to the NYSE and "take liquidity" away from the market, you get hit with a .08 fee per 100 shares. I need a good explanation of what "taking liquidity" away means. If it means using a market order, I'm screwed.

There is a silver lining. The key is figuring out how to exploit it. If you "provide liquidity" via NYSE ARCA, you get a .25 rebate per 100 shares traded.

I need to know exactly what type of orders to place, (market or limit) and exactly where to route them (NYSE, ARCA, other ECNs) in order to avoid the "monster fee" and take advantage of the "petty rebate."

I trade from home. If anyone works for a place where they are discussing these fees and how we can avoid them/take advantage of them, please inform us all via the comments section.

Meanwhile, if we can't figure this stuff out, October will be a little bit like this:

LEH Trading Up Pre-Open

I haven't even looked at the numbers yet, but it looks like I'm going to get squeezed like a schoolteacher in my LAZ short.



UPDATE: It's all good. Financials gapped up and sold off. I short a good amount of LAZ and made 40 cents. I short UBB and ITU as well. A good way to start the day, I'll probably take it real easy up to the 2:15 number now.

Sue Teller Mashes It Up

I guess this will count for your "music video" today...

Quiet Before The Storm?

Man, this stock has ran 20% in the last 5 sessions. Clearly, money is being put to work in the name, but still, it needs to take a breath soon.

Unfortunately, today wasn't the day. And, I got short...



So I got smoked, losing about $750 in LVS, the gambling stock. How apt.

Anyway, otherwise, I did well today. I got short LAZ at around $41.90 and made a little over a half point in the guy.



I also stayed short some overnight. Hopefully, LEH posts a bomb, freaks the market out therefore allowing me to cover with a quick gain. My worry is that this trade seems almost too easy and obvious... we'll see. Heck, the Fly" is short... as long as the same "fat mountain bitches" who run CWTR don't run LAZ I think it could work out.

Other shorts that worked in my favor were KMT, DSX, HXM and AMG.

I traded lightly today... just trying to have a positive day before the storm tomorrow. I need to rebuild confidence here since we may be headed for some volatility.

Also, I don't remember whether or not I've brought this up here earlier, but I think the market is fucked tomorrow no matter what happens. It's run back up here on really light volume. I bet tomorrow we'll see a sell off on higher volume despite what Uncle Ben does for us.

Anyway, go vote on my damned poll. Also, if you're a stock trader and want to join the VO, email me. I need to shake it up a bit.

Here's the stats:

P&L, $250
Best, LAZ, $524
Worst, LVS, -$742

14,000 shares traded.
8 stocks traded, 6 winners, 2 losers.
70 trades.

Virtual Office, $3747. Dow, -39.10, 13403.42.

Misstrade, $3390 on 11,500 shares traded.
Me, $250 on 14,000 shares traded.
Denarii, $182 on 4000 shares traded.
Tapeworm, no trades.
Akalawoo, no trades.
HPT, AWOL...
OBAT, vacation.
Evolution, vacation.
Bubs, -$75 on 1200 shares traded.

Damn the VO was lame today. The majority of the traders took off, leaving it up to Misstrade to make money. Ah, to be Misstrade... the man has had like, 3 down days since March.

Volume today was pathetic enough to actually make me angry with the market. We traded a lousy 1,103,448,000 shares. That's like, 1998 levels or something silly like that.

I mean, that volatility in August looks like a big tease right now. I hope we heat up again after the FED announcement tomorrow otherwise I'm going to go back to worrying about my future.

So despite a heated debate about "R" today, not much happened here. All eyes will be on the FED tomorrow. I, for one, can't wait. I'M SICK OF ALL THE FED TALK!!!

A New Poll

I've always made fun of the "hillbillies" over at MovetheMarkets for measuring their trading performance in "R." Currently, we are having a friendly debate about "R" and it's usefulness. At least I'm being friendly... I can tell Richard hates me.

I've always found dollars and cents to be a perfectly fine metric for measuring how good or bad a trade was. It works like this... if I make a lot of money, it was a good trade. If I lose a lot, it was a bad trade.

Anyway, I'm interested to see how many of you measure your trades in terms of "R" as opposed to dollar value.

My feeling is that unless I can pay for my daughter's college education with some type of "R" certificate (Dino-Dollars?) that I'll stick to measuring my performance in dollars and cents.

So, here is the poll: Is "R" a useful tool for measuring the success of a trade or does your account total already do that?

"Bears Are Godless Killing Machines"

I'm extremely bearish going into the FED meeting tomorrow. Someone give me some good bull arguments to even out my trading. I'm missing every long...

The Market, 5 Billion Years From Today

It seems that Ray and the NYSE are already planning ahead.

Note the dig on NASDAQ... I loved that!

He needs a spot on Conan.

Me and LVS

I got short LVS this morning... a little "early."

This is what it felt like...



Hopefully it won't see $124 or above for the rest of the day. If that happens, I'll take off the rest of the afternoon and wait for the fireworks tomorrow.

How Could You Censor Gidget?

That's right! Censoring in the USA... watch those opinions, people!

FOX is the fascist network... If you watch it, fine, just understand that you are watching propaganda and propaganda only.

Libraries Rule

I recently discovered that I can log into my local library's main search engine from home.

They are part of this huge lending network. I can search the database, find DVDs, CDs or books that I want and request that they be sent to my library.

In short, I'm amazed that I can get all this stuff for free, legally.

Go hug a librarian.

Blue Dog

Hey, sorry that I still haven't posted the VO for yesterday. I just haven't been in the house to blog much these past couple of days.

So my buddy "Blue Dog" from Wallstreak has started a new stock blog. Check it out!

He will be updating the blog regularly. Perhaps he will enter the VO soon? We will see...

Virtual Office

Evolution, $1462 on 34,600 shares traded.
Me, vacation
OBAT, vacation
Akalawoo, no trades
Misstrade, $0 on 4000 shares traded.
Denarii, -$69 on 14,000 shares traded.
Bubs, -$190 on 12,000 shares traded.
Tapeworm, -$312 on 10 contracts traded.

Well, a pretty lame day for the VO. Pretty lame post too... but I'm on vacation.

My hands smell like lobster and my hair smells of saltwater.

Bob Dylan, "It's Alright Ma, (I'm Only Bleeding)"

I won't be posting much today. I took a day away from the markets and had my best surf session since I started again a couple of months ago. I caught countless clean rides as the wind shifted here overnight to slight offshore. It's a beautiful day.

Anyway, so I'm posting one of my favorite songs of all time with the lyrics. I wish we had someone to write songs like this today. I've bolded some of the lyrics that stand out to me as being particularly meaningful. Enjoy.

Meanwhile, I probably be very late with the VO. We are having company out midday and through dinner. I will also try and throw another post up later this evening.

Hope you're having a good day.




Darkness at the break of noon
Shadows even the silver spoon
The handmade blade, the child's balloon
Eclipses both the sun and moon
To understand you know too soon
There is no sense in trying.

Pointed threats, they bluff with scorn
Suicide remarks are torn
From the fool's gold mouthpiece
The hollow horn plays wasted words
Proves to warn
That he not busy being born
Is busy dying.

Temptation's page flies out the door
You follow, find yourself at war
Watch waterfalls of pity roar
You feel to moan but unlike before
You discover
That you'd just be
One more person crying.

So don't fear if you hear
A foreign sound to your ear
It's alright, Ma, I'm only sighing.

As some warn victory, some downfall
Private reasons great or small
Can be seen in the eyes of those that call
To make all that should be killed to crawl
While others say don't hate nothing at all
Except hatred.

Disillusioned words like bullets bark
As human gods aim for their mark
Made everything from toy guns that spark
To flesh-colored Christs that glow in the dark
It's easy to see without looking too far
That not much
Is really sacred.

While preachers preach of evil fates
Teachers teach that knowledge waits
Can lead to hundred-dollar plates
Goodness hides behind its gates
But even the president of the United States
Sometimes must have
To stand naked.

And though the rules of the road have been lodged
It's only people's games that you got to dodge
And it's alright, Ma, I can make it.

Advertising signs that con you
Into thinking you're the one
That can do what's never been done
That can win what's never been won
Meantime life outside goes on
All around you.

You lose yourself, you reappear
You suddenly find you got nothing to fear
Alone you stand with nobody near
When a trembling distant voice, unclear
Startles your sleeping ears to hear
That somebody thinks
They really found you.

A question in your nerves is lit
Yet you know there is no answer fit to satisfy
Insure you not to quit
To keep it in your mind and not forget
That it is not he or she or them or it
That you belong to.

Although the masters make the rules
For the wise men and the fools
I got nothing, Ma, to live up to.

For them that must obey authority
That they do not respect in any degree
Who despise their jobs, their destinies
Speak jealously of them that are free
Cultivate their flowers to be
Nothing more than something
They invest in.

While some on principles baptized
To strict party platform ties
Social clubs in drag disguise
Outsiders they can freely criticize
Tell nothing except who to idolize
And then say God bless him.

While one who sings with his tongue on fire
Gargles in the rat race choir
Bent out of shape from society's pliers
Cares not to come up any higher
But rather get you down in the hole
That he's in.

But I mean no harm nor put fault
On anyone that lives in a vault
But it's alright, Ma, if I can't please him.

Old lady judges watch people in pairs
Limited in sex, they dare
To push fake morals, insult and stare
While money doesn't talk, it swears
Obscenity, who really cares
Propaganda, all is phony.

While them that defend what they cannot see
With a killer's pride, security
It blows the minds most bitterly
For them that think death's honesty
Won't fall upon them naturally
Life sometimes
Must get lonely.

My eyes collide head-on with stuffed graveyards
False gods, I scuff
At pettiness which plays so rough
Walk upside-down inside handcuffs
Kick my legs to crash it off
Say okay, I have had enough
What else can you show me?

And if my thought-dreams could be seen
They'd probably put my head in a guillotine
But it's alright, Ma, it's life, and life only.


Copyright © 1965; renewed 1993 Special Rider Music

Zero 7, "In The Waiting Line"

A Long Conversation

So I had a bad day. My computer is off (my work computer) and I'm not going to dredge all that crap up again. I short UBB heavily and it spiked up almost a point.

But my day had a happy ending. I drove back out to the beach and had a great conversation with a perfect stranger. In my experience, people generally piss me off, almost immediately, so it was a refreshing change of pace.

Anyway, I did a lot of writing today, although not the kind I throw up here on the blog. Perhaps eventually it will work it's way here in some form.

For now, I'm off to bed.

I don't expect to trade much tomorrow.

Virtual Office, $555. Dow, -16.74. 13,291.65.

Misstrade, $1065 on 2500 shares traded.
Evolution, $1007 on 38,200 shares traded.
Akalawoo, $262 on 6 contracts traded.
Bubs, $139 on 1800 shares traded.
Denarii, $28 on 1400 shares traded.
OBAT, vacation.
Tapeworm, -$562 on 10 contracts traded.
Me, -$1384 on 33,600 shares traded.

The fucking market is going to sleep. SHHHHHH!

We traded a whopping 1,258,775,000 shares today.

The Jewish holidays start tonight, the Fed meets on Tuesday... I wonder if we break a billion shares the next 3 days. Shalom.

Try as I did to bring the VO negative today with my craptastic trading performance, it was impossible. The VO traders are too good to get bombed like that.

Meanwhile, how many days does Maria celebrate her damned birthday? Made a bad day worse for me, seeing her all happy and fake-giggling.

Anyway, guess what? I'm going to the beach. I'll be back later.

Red Tide

At the end of the day yesterday, I went to the beach to look at the surf.

We were hit with a "red tide" and the breaking waves had a bloody look to them. Bloody waves and strong winds made it look a little scary and I didn't go out.

This morning, I got to the break before sunrise and things had calmed a bit, but not too much. The red tide was still blooming but I decided to give it a whirl anyway, fully expecting to get punished by what the local surf report was describing as "gnarly" waves.

Paddling out was tough. I got slapped in the face immediately and spit out that red algae shit. It was disgusting. Making matters worse, I opted for the long board today since I thought the swell was going to dissipate a bit overnight. It's more difficult to get under large waves with a longboard than a shortboard. The swell hadn't dissipated at all. 4 and 5 foot waves were common with a couple rogue sets of 6+ footers out there.

I was turtle rolling left and right, huffing, puffing and paddling. It's amazing how much stronger my arms are now than they were only 2 months ago when I began surfing again. There was finally a lull to the waves and with a few strong paddles, I was "outside."

Normally, you do most of the hard work on the "inside" where the waves are breaking and rushing the shore. However, even "outside" there was a lot of work to be done today. I was getting pushed west very quickly and had to expend a lot of energy paddling east every 5-minutes or so just to keep my place.

The winds were too strong, the current fast and the waves choppy. I was getting tired. It was like trading 100,000 shares for $100 in profit. Tough and frustrating. I guess that's why it was just me and my buddy out there.

In the end, I caught one excellent ride and wiped out twice. As I paddled back in through the red sludge I smelled strongly of the tide. I walked out of the water and onto the shore. I removed my leash and took a look back at the angry waves. I was out of breath but I felt like I had accomplished something.

Anyway, "red tide" has also washed up on my trading desk. I hit my loss limit for the day... I am done. Score one for the "haters."

After my massive August I don't see any reason to piss money away during these low volume headfakes... soon enough the volume should return and make this a market worth trading again. Until then, I've decided to trade extremely lightly... hopefully volume comes back after the Fed meeting.