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04-08-2011, 10:40 PM #1
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Guess Who's Almost Out Of Silver ~ JP Morgan
Guest Post: Guess Who's Almost Out Of Silver
Submitted by Tyler Durden
04/08/2011 12:11 -0400
219 comments
by Mark McHugh of Across the Street
Guess Who's Almost Out Of Silver
According to Jamie Dimon, he did America a favor http://blogs.wsj.com/deals/2010/04/01/j ... r-bailout/ when he agreed to take bailout money from taxpayers (and we didn’t even have the decency to thank him). Last week, http://www.thefiscaltimes.com/Articles/ ... Crazy.aspx we learned that the JP Morgan CEO likes his catastrophe’s predictable, but as Mick Jagger once observed, “You can’t always get what you want.â€Join our efforts to Secure America's Borders and End Illegal Immigration by Joining ALIPAC's E-Mail Alerts network (CLICK HERE)
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04-08-2011, 10:43 PM #2
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On Silver's Exponential Price Feedback Loop
Submitted by Tyler Durden
04/08/2011 15:42 -0400
223 comments
And as if silver bulls needed some more good news, here is a report from the Morgan Stanley metals desk...
I was told on Wednesday that big buying went thru on Tuesday in may atm silver calls which should make the market short gamma.
A short gamma position will become shorter as the price of the underlying asset increases. As the market rallies, you are effectively selling more and more of the underlying asset as the delta becomes more negative.
So what that means is that the SELLER of the calls, probably bought Physical to delta hedge themselves neutral. As this market jumps just about 1-2% daily (this week alone +6.5%) they would need to now re hedge to bring themselves back to neutral by BUYING more Physical as SILVER goes higher, essentially driving the market Higher still and so the chase goes theoretically moving the market higher causing them to buy more to hedge and moving the market higher, thus buying into rallies.
Now they could BUY puts also to create positive Gamma as well to offset some of that pain they are not bound to the Physical for their hedge. Lots of what if's but that’s the idea.
On the other side if Silver were to gap lower, this would not help either as they would need to SELL Physical into a falling market to re-hedge themselves.
Great in a slow steady market, nightmare in a volatile
Translation: ever-accelerating feedback loop (both higher and lower). Vol is about to go off the charts.
http://www.zerohedge.com/article/silver ... dback-loopJoin our efforts to Secure America's Borders and End Illegal Immigration by Joining ALIPAC's E-Mail Alerts network (CLICK HERE)
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04-08-2011, 10:46 PM #3
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Fresh Silver Breakout Sends Price To New Three Decade High
Submitted by Tyler Durden
04/08/2011 10:58 -0400
224 comments
Is it time to start quoting that famous William Butler Yeats poem yet?
http://www.zerohedge.com/article/fresh- ... ecade-highJoin our efforts to Secure America's Borders and End Illegal Immigration by Joining ALIPAC's E-Mail Alerts network (CLICK HERE)
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04-08-2011, 11:10 PM #4
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$40.005
Submitted by Tyler Durden
04/08/2011 00:39 -0400
331 comments
Lights out
http://www.zerohedge.com/article/40005Join our efforts to Secure America's Borders and End Illegal Immigration by Joining ALIPAC's E-Mail Alerts network (CLICK HERE)
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04-08-2011, 11:22 PM #5
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Great stuff zerohedge. Nothing like being in the right place at the right time !!!
If you ain't mad, you ain't payin' attention = Terry Anderson.
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