You're right QE doesn't create a bubble, but what it does is "prop" the market up for an over extension of time longer than it should be.
A lot of oil / gas, energy stocks took a beating when price of oil plummeted. The question is will oil continue to stabilize or go into the 76-77 area. With oil stabilizing, it is good for the market short term and SLB and companies like PXD, OC etc. I really liked PXD at <160. If we can get a move in oil, PXD will be back towards 210-220.
Agree with that - what I question is why pulling the last $10B of QE would cause a market crash. Given that PE ratios are reasonable, is the argument that removing that last bit of QE will cause all the earnings to fall dramatically? And if so, why?
no the argument is once QE is taken away the market will no longer have the crutch of the Fed and its loose monetary policies, so it would perhaps start the wheels for a correction.
I forgot to reply to you earlier.... 1. Yeah I subscribe to a couple news services. Briefing.com and the guy who calls out the news thru Lightspeed's trading platform. Also, I follow a lot of different people on twitter. 2. Yes I'm a prop trader. I have my series 7, 55, and 63 licenses. I trade thru a prop firm, and I keep about 90% of the profits. It used to be 100%, but since the mkt crash the federal agencies decided to come up with stupid guidelines. They have forced prop firms to keep some of the trader's profits for a "rainy day" type fund in case something at the firm blows up.
AAPL just had strong EPS and man it's just crazy they have $155 billion on their balance sheet. Jesus guys....you know you can do more with that. If they would have listened to Icahn when he bought the stock would be 30 points higher.
so what's the difference working at a prop firm than just using your own capital --- the leverage of capital is greater? are you a quant writing code also?
I don't think the board cares. they aren't exactly creating value for the shareholders at this point. ** The way I look at Apple now is I don't think they can maintain growth on sales. Reasons: 1) loss sales on ipad 2) computer sales will trend down The Watch and Apple Pay provides revenue but this revenue may not be as big as Ipad's performance in the past. Unless they come up with some earth shaking new products, this is moving away from a high growth company to a mature company.
Yeah you get a lot more leverage. I don't do any quant stuff but there are a few guys at my office who do.
thanks for clarifying that. I wanted to do prop trading when i left the I bank, but I didnt have enough experience so I just started doing it myself..then just stayed with it in this form.
HIMX party over - google backs out http://www.streetinsider.com/Corpor...Option+for+Additional+Investment/9929274.html
HIMX, GTAT - I guess that's what can happen when you're totally reliant on one customer for 90% of your business.
Umm, HIMX has never relied on Google for ANY business. None of the revenue on its current balance sheet, none of the forecasted earnings in the immediate future. Google Glass was an ideal that wasn't even close to being realized, but there remains the opportunity as Google still owns a 6.4% stake in the HDI subsidiary. Frankly, I hope this news scares all the daytraders out of the stock. Sometimes a business can have a completely sound model, with stable revenue streams and lots of reliable customers, yet still be a high-risk investment all because of who is investing in the company. Anyone who has ever looked at a HIMX earnings report or read the conference call transcripts would know that there is NO connection between HIMX and GTAT, who really did rely on Apple for all their business. Or even say, NQ Mobile, a company that hasn't released an earnings report in over a year! The only thing that links the three are the gambling daytraders that caught on to all of them; and their reciprocals, the short-selling hounds who smelled blood in the water. I had gotten back in on HIMX when it was 6.95 and 6.5, and will use this as an opportunity to get back in as well once things stabilize. Display drivers for mobiles (Samsung is a longstanding client), laptops, and 4k TV's still supply the bulk of current revenue with decent growth opportunities, but it's the LCOS microdisplay that appears still to be the best option for all the wearable technologies that are in various stages of development. I have never come close to paying any regard to GTAT or NQ, but I remain long HIMX. You can retrieve this post later for any reason; I'll stand by it .
went short at spx 1948 pcln 1100 p, $2.60 twtr 52p fb 80p, fb at year high was no comment!! iwm 109p im gonna try and ride it out till spx 1910-1920
closed 70% of positions at spx 1933. I was originally thinking 1940-1960 on the spx top. I think it could draw down to 1910-1920 just don't have timing for it.
