Re: "Index ETF withdrawing from the market to meet redemption requests"
ETF's are not mutual funds; hence not sure I understand how "redemption requests" would apply. In general, aren't "redemptions" of ETF's usually effected by selling the ETF shares in the open market at the then-prevailing price?
"[T]he first time I traded because of a crisis that was still to come I found that I had been using a telescope. Between my first glimpse of the storm cloud and the time for cashing in on the big break the stretch was evidently so much greater than I had thought that I began to wonder whether I really saw what I thought I saw so clearly.
"We had had many warnings and sensational ascensions in call money rates. Still some of the great financiers talked hopefully at least to newspaper reporters and the ensuing rallies in the stock market gave the lie to the calamity howlers. Was I fundamentally wrong in being bearish or merely temporarily wrong in having begun to sell short too soon?
"I decided that I began too soon, but that I really couldn't help it. Then the market began to sell off. That was my opportunity. I sold all I could, and then stocks rallied again, to quite a high level. It cleaned me out. There I was -- right and busted! I tell you it was remarkable. What happened was this I looked ahead and saw a big pile of dollars. Out of it stuck a sign. It had "Help yourself," on it, in huge letters. Beside it stood a cart with "Lawrence Livermore Trucking Corporation" painted on its side. I had a brand-new shovel in my hand. There was not another soul in sight, so I had no competition in the gold-shoveling, which is one beauty of seeing the dollar-heap ahead of others. The people who might have seen it if they had stopped to look were just then looking at baseball games instead, or motoring or buying houses to be paid for with the very dollars that I saw.
"That was the first time that I had seen big money ahead, and I naturally started toward it on the run. Before I could reach the dollar-pile my wind went back on me and I fell to the ground. The pile of dollars was still there, but I had lost the shovel, and the wagon was gone. So much for sprinting too soon ! I was too eager to prove to myself that I had seen real dollars and not a mirage. I saw, and knew that I saw. Thinking about the reward for my excellent sight kept me from considering the distance to the dollar-heap.
"I should have walked and not sprinted. That is what happened. I didn't wait to determine whether or not the time was right for plunging on the bear side. On the one occasion when I should have invoked the aid of my tape-reading I didn't do it. That is how I came to learn that even when one is properly bearish at the very beginning of a bear market it is well not to begin selling in bulk until there is no danger of the engine back-firing."
Many years ago, my brother wrote to the Arizona State admissions office asking for an application. He got back a letter telling him he was accepted. Needless to say, he elected to go to college elsewhere.
MACD will get you in/out less late if you (1) use shorter time frames (e.g., hourly vs daily, or daily vs weekly); and (2) if you play with the parameters a bit (e.g., MACD[8,15,9] vs MACD[12,26,9]). Not advice; do your own due diligence.
Re IB security: Now have a security card, and before that had a security code generator. Both have worked flawlessly in implementing challenge/response security.
Relevant link to IB site: http://www.interactivebrokers.com/en/p.php?f=secur...
Click on the "STP" tab for info on IB's Secure Transaction Program
Re margin calls: IB is very up-front about the fact that they do not make margin calls, and that they act very promptly via automated liquidation to protect themselves. From the IB website:
"IB calculates initial (new position) and maintenance margin requirements on a real-time basis. IB will liquidate positions on a real-time basis if there is a maintenance margin deficiency. Real-time margining allows you to see your trading risk at any moment of the day and it allows IB to maintain low commissions because we do not have to spread the cost of credit losses to customers like other non-automated brokers."
"What happened shows you that I am right in never trading at limits. Suppose I had limited my selling price to 300? I'd never have got it off. No, sir! When you want to get out, get out."
-- Jesse Livermore
"I always made money when I was sure I was right before I began. What beat me was not having brains enough to stick to my own game -- that is, to play the market only when I was satisfied that precedents favored my play. There is a time for all things, but I didn't know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. No man can always have adequate reasons for buying or selling stocks daily or sufficient knowledge to make his play an intelligent play. I proved it. Whenever I read the tape by the light of experience I made money, but when I made a plain fool play I had to lose. I was no exception, was I?"
-- Jesse Livermore
1st problem I've had with IB in ages. Had trailing .12 stop. Price spiked to 6.20 (several trades at or near that level per time & sales; stop should've moved to 6.08, but only went up to 6.01. Not good.
Re: "Index ETF withdrawing from the market to meet redemption requests"
ETF's are not mutual funds; hence not sure I understand how "redemption requests" would apply. In general, aren't "redemptions" of ETF's usually effected by selling the ETF shares in the open market at the then-prevailing price?
http://www.para-tours.ch/_admin/pdf/06_Denali_Hwy.pdf
http://en.wikipedia.org/wiki/Fred_(bicycling)
Here's a thought from Jesse Livermore:
"[T]he first time I traded because of a crisis that was still to come I found that I had been using a telescope. Between my first glimpse of the storm cloud and the time for cashing in on the big break the stretch was evidently so much greater than I had thought that I began to wonder whether I really saw what I thought I saw so clearly.
"We had had many warnings and sensational ascensions in call money rates. Still some of the great financiers talked hopefully at least to newspaper reporters and the ensuing rallies in the stock market gave the lie to the calamity howlers. Was I fundamentally wrong in being bearish or merely temporarily wrong in having begun to sell short too soon?
"I decided that I began too soon, but that I really couldn't help it. Then the market began to sell off. That was my opportunity. I sold all I could, and then stocks rallied again, to quite a high level. It cleaned me out. There I was -- right and busted! I tell you it was remarkable. What happened was this I looked ahead and saw a big pile of dollars. Out of it stuck a sign. It had "Help yourself," on it, in huge letters. Beside it stood a cart with "Lawrence Livermore Trucking Corporation" painted on its side. I had a brand-new shovel in my hand. There was not another soul in sight, so I had no competition in the gold-shoveling, which is one beauty of seeing the dollar-heap ahead of others. The people who might have seen it if they had stopped to look were just then looking at baseball games instead, or motoring or buying houses to be paid for with the very dollars that I saw.
"That was the first time that I had seen big money ahead, and I naturally started toward it on the run. Before I could reach the dollar-pile my wind went back on me and I fell to the ground. The pile of dollars was still there, but I had lost the shovel, and the wagon was gone. So much for sprinting too soon ! I was too eager to prove to myself that I had seen real dollars and not a mirage. I saw, and knew that I saw. Thinking about the reward for my excellent sight kept me from considering the distance to the dollar-heap.
"I should have walked and not sprinted. That is what happened. I didn't wait to determine whether or not the time was right for plunging on the bear side. On the one occasion when I should have invoked the aid of my tape-reading I didn't do it. That is how I came to learn that even when one is properly bearish at the very beginning of a bear market it is well not to begin selling in bulk until there is no danger of the engine back-firing."
http://futuresource.quote.com/charts/charts.jsp?s=ES U9&o=SPY&a=V%3A15&z=800x550&d=HIGH&b=bar&st=
Glad you have access to quality health care. Wish more of the world's people did. Best wishes whatever the outcome. ~OG
Tim Knight noted (and acted upon) "serious, serious accumulation at these levels." He posted @ 10:31 this morning. See chart.
http://slopeofhope.com/2009/06/ung-again.html
SAIC
Many years ago, my brother wrote to the Arizona State admissions office asking for an application. He got back a letter telling him he was accepted. Needless to say, he elected to go to college elsewhere.
I'd add that when I hooked up a second, external monitor to my laptop recently, it put a tremendous drag on performance. YMMD. ~OG
Dave - LOL! Happened all the time. ~ OG
MACD will get you in/out less late if you (1) use shorter time frames (e.g., hourly vs daily, or daily vs weekly); and (2) if you play with the parameters a bit (e.g., MACD[8,15,9] vs MACD[12,26,9]). Not advice; do your own due diligence.
Re IB security: Now have a security card, and before that had a security code generator. Both have worked flawlessly in implementing challenge/response security.
Relevant link to IB site:
http://www.interactivebrokers.com/en/p.php?f=secur...
Click on the "STP" tab for info on IB's Secure Transaction Program
Re margin calls: IB is very up-front about the fact that they do not make margin calls, and that they act very promptly via automated liquidation to protect themselves. From the IB website:
"IB calculates initial (new position) and maintenance margin requirements on a real-time basis. IB will liquidate positions on a real-time basis if there is a maintenance margin deficiency. Real-time margining allows you to see your trading risk at any moment of the day and it allows IB to maintain low commissions because we do not have to spread the cost of credit losses to customers like other non-automated brokers."
http://www.interactivebrokers.com/en/trading/margi...
Jesse has an interesting post up re demand for delivery on expiring silver futures contracts:
http://jessescrossroadscafe.blogspot.com/2009/04/s...
C'mon Dylan...Tell us what you REALLY think!!!!
;)
http://www.fedupusa.info/Dylan_Ratigan_Interview
McAfee SiteAdvisor indicates an issue with the fedupusa website; however, the above link seems to go straight to the interview.
"What happened shows you that I am right in never trading at limits. Suppose I had limited my selling price to 300? I'd never have got it off. No, sir! When you want to get out, get out."
-- Jesse Livermore
"I always made money when I was sure I was right before I began. What beat me was not having brains enough to stick to my own game -- that is, to play the market only when I was satisfied that precedents favored my play. There is a time for all things, but I didn't know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. No man can always have adequate reasons for buying or selling stocks daily or sufficient knowledge to make his play an intelligent play. I proved it. Whenever I read the tape by the light of experience I made money, but when I made a plain fool play I had to lose. I was no exception, was I?"
-- Jesse Livermore
Had one in my rear-view mirror on the Interstate yesterday.
1st problem I've had with IB in ages. Had trailing .12 stop. Price spiked to 6.20 (several trades at or near that level per time & sales; stop should've moved to 6.08, but only went up to 6.01. Not good.