Market Mayhem Watch : Day 1

Gold jumped some $30 on the back of fear. If the U.S. government is going to bail out the banks people realised it was time to bail out of U.S. dollars, bonds and stocks. Guido took profit on the spike, probably far too soon. You don’t go broke taking profits too soon though. Gold carried on through $900 without Guido for the ride.

The euro jumped nearly 2.5% or some 300 pips, biggest move ever. Took profit on that and switched to shorting the dollar against sterling on the possibly irrational idea that other speculators will start to eye a $2 pound and the move against the dollar was not as violent as it was vis-a-vis the euro. The position is a little underwater.

Just to prove what an evil speculator Guido is he shorted the FTSE hard. Am still running the short and marked to market am up some 21.5% overall on the day. A profit or loss of that magnitude in a day signals too much leverage in too volatile a market. Strangely traders never mind violent P&L swings when they are to the plus side. Friday’s broad stock market gains evaporated, oil hit $125 a barrel. Tomorrow can’t be this volatile, can it?

The FT’s Alphaville blog (“The Site That Supports our Shorts”) highlights a Downing Street petition to criminalise consenting behaviour between capitalists. They want to criminalise short selling. Some trade union boss told the Labour Party conference he wants to tax us into extinction. Tax us to the Bahamas more likely.


Seen Elsewhere



Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Ruth Davidson on working with PM Boris

“I have worked with him when he was Foreign Secretary. I will work with whoever the Prime Minister is. I haven’t had a phone call yet to ask me to run his campaign in Scotland. I am not expecting the call. But I will genuinely judge him on the same criteria as I judge any of the candidates.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Farage Milkshaker Unmasked Farage Milkshaker Unmasked
ChUK Blame Game ChUK Blame Game
Angry Esler Angry Esler