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Tuesday Commentary from Chris

Big Al
December 16, 2014

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Discussion
10 Comments
    Dec 16, 2014 16:38 AM

    Nimble traders can make money on small micro-moves up and down in the whipsaw, but there doesn’t appear to be any real direction in the PMs or conventional markets.

    Things may change tomorrow with the Fed announcement, and there may be an oversized move after there announcement from all the people on the wrong side of the trade selling or shorts being squeezed in one direction or another. However, many times the first day (even hours) after the Fed announcement can just be a big “head-fake” in the real direction. This is a bit too choppy for most people to trade.

      bj
      Dec 16, 2014 16:46 AM

      Unless you can trade faster than one of the super computers of the “big ‘bank’s” (i.e. in milliseconds) you will eventually become roadkill. In the meantime, hoping you stay nimble and travel far. All my life I waited for the coyote to catch the roadrunner, and it never happened.

        Dec 16, 2014 16:06 AM

        agreed. Swing trades where you buy and hold for 2-5 days are working, but really risky, and the high-frequency trading can really cause things to change on a dime and turn someone into coyote roadkill for sure : – )

      Dec 16, 2014 16:05 AM

      Make that Thursday that will be the big move day. While the Fed meets on Wednesday, the news will be rehashed all night Wednesday, and a further fed statement on Thursday could put the wheels in motion.

        Dec 16, 2014 16:28 AM

        Great dialog you guys. As you know I pretty much agree with both of you.

          Dec 16, 2014 16:34 AM

          As you say AL – “We are in interesting times…”

    Dec 16, 2014 16:43 AM
    Dec 16, 2014 16:55 PM

    FROM ZERO HEDGE

    Wall Street Harbinger Jefferies Reports Q4 Bloodbath: 73% Plunge In Fixed Income Revenue, 45% Drop In Equities
    Submitted by Tyler Durden on 12/16/2014 – 14:42
    What Jefferies is best known for among Wall Street shareholders is that, by still reporting a Nov. 30 fiscal year end, 1 month ahead of everyone else, it provides an invaluable glimpse into the fortunes of its Wall Street peers with a 4 week advance notice, especially when it comes to its bread and butter: fixed income trading (recall that CEO Rich Handler was a Drexel bond trader when the firm blew up). And report it did earlier today, although most of Wall Street shareholders would rather it didn’t, because the numbers were absolutely abysmal, and indicative of nothing short of a trading bloodbath on Wall Street in the latest three months of trading.