Penforhire

Last night Cramer called out three hedge funds for causing big down-moves in the prior two days. (one Wednesday, two on Tuesday). I had no idea just one fund could cause such a broad deep dip.

Of course I hadn't heard about "fund of fund" managers either and how they supposedly don't have the same redemption window limits as a typical hedge fund member.

Elistan

I think that's just normal behavior of the aggregate market these days. Yesterday for example, DJI was at 8272 at 14:24, up 172 sixteen minutes later, then back down to 8274 after another sixteen minutes. I don't think it's manipulation - rather, 100-point swings are simply how things work now in this panic-fuel atmosphere.

ExOdy

Yeah, you're correct. I should have used them to hedge as protection rather than seeing them as trades like I previously did.

lOOkatme

another way to hedge is shorting the same amount of the same company you own....if it tanks....you cover your short and move the money into the same stock. same value....less risk against downside.


I have only done it a few times....but it works.

PearlwhiteS2k

Markets heading below 8,000. What level of the DOW are you guys picking up more shares? Started building a nice % of cash in my portfolio.

PearlwhiteS2k

Markets heading below 8,000. What level of the DOW are you guys picking up more shares? Started building a nice % of cash in my portfolio.

cthree

Dude don't you sleep either?

Hong Kong down 12%, Europe down 6%, US futures off 4%, looks like a crash in slow motion. Just when you thought it couldn't get worse...

Glad I've decided to stay away and in cash, US cash. Worth $1.28 CDN$ today, compared to $0.92 earlier in the year.

Crazy shit. This is definitely history in the making.

martha

As an example of how confusing this market can be to a non-financial type like me, someone (lookatme maybe?) mentioned copper as a play in another thread. The following three excerpts are from three separate "stories" in today's Reuters Daily Commodities Brief for 27th Oct 2008. Maybe I need more coffee, but they seem a bit contradictory to me.

1. Shanghai copper limit down, LME hits 3-yr low

SINGAPORE, Oct 27 (Reuters) - Shanghai copper and zinc fell by their daily limits on Monday after a 1-day suspension, and London metals also dropped as investors bet on further declines in global growth and more turbulence in financial markets.

"Commodity markets are very distressed and at times, drift into panic," a metals trader in Australia said.

2. China Sept refined copper imports up 9.9 pct on year-Customs

BEIJING, Oct 27 (Reuters) - China, the world's top copper consumer, imported 112,187 tonnes of refined copper in September, a rise of 9.9 percent from year earlier, the General Administration of Customs figures showed on Monday.

The September imports were up from 87,168 tonnes in August as buyers have increased spot imports on better margins.

3. Financial turmoil cuts China copper demand

NANCHANG, China, Oct 27 (Reuters) - The global financial turmoil and slowing economy may erase 100,000 tonnes of refined copper consumption this year in China, the world's top consumer of the metal, a senior copper analyst at state-owned research group Antaike said.

The financial fallout is likely to slow China's copper consumption growth to 7.5 percent in 2008 and to 6.1 percent in 2009, compared with 13.4 percent last year.

sahtt

Forget trading off data like that. Prices are being set by the money coming in and money going out. Right now it's still going out and dont' buy until you think it's coming back in. I've been buying off the lows, putting a stop under it, and selling the bounces if it's a bigger position than I am comfortable with or just a trade vs an investment.

PearlwhiteS2k

Haha I do sleep but late at night around 3-4am est. Yes the US vs the CND is great