I've decided it's best to consolidate all daily posting's into one long thread. My blunders will now appear in an orderly fashion
Morning Outlook from the Trade Desk 05/11/12
Broke the Cardinal rule of a trader yesterday and acted on misunderstood info. Had the info been as I understood, the trade would have been right. Even grizzly traders require mea copas now and then. At least it was not a loss, just took profit way too early.
The big news however was JP Chases announcement of a $2 billion, I suspect it will be more, loss on a hedge that went wrong. My modest experience would suggest a hedge is to mitigate loss, not cause it. Turns out they can afford it, but it is still uncertain if there will be collateral damage. The “ boys” don’t seem to have learned their lessons from 2008. Sounds like compliance jobs will be the next growth sector. This announcement created worry and the stock markets reacted accordingly. Add slower China growth and the metals again moved lower.