Thursday 16 January 2014

The Long and Short of it

Anything that is a sure thing about the markets is probably being done already. Who wins in that case? Are we back to the Stanley Cup question? And what is a question about a question? Aghhhh!

So many indecision points. Some say it is like Fibonacci's Rabbits. The only thing predictable about that is that it will be unpredictable.

Now you can Buy or Go Long on a Short or Double Short ETF to emulate a short position with all the extra cost baked in. If they have Options, you can in effect emulate a short position on that same short ETF. That would be like going long on the net effect.

Well then what happens when you have two opposing ETF's and short them both? One says yes while the other says no, hedging the variations in the market. To win at that, you have to wrap your head around the opposite side of the trades of opposites. You would have to own the exchange, or in effect you would be emulating owning the exchange.

There are several ways to do that. CME is a ticker and a place! CBOE too! So whats Da Problem? You can invest in the hopefully increasing entropy of it. Somehow it seems like there should be a badda bing badda boom at the end of that.

Well, what is the best stuff under the hood of that? Anyways, this hermaphroditic monster is called The Market. To ultimately make it ya gotta sell the market.

We all hope that when the dust settles The Market is the last group of men standing other than us! To make sure that they are, they build enough cost into the services to make sure they have enough to keep running. So what are they standing on?

Now cut that out! lol Anyways, gotta go.... Ben's Talking!...

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