Posted by DigiNomad on 20th of Aug 2024 at 02:00 pm
Not much to say. We've entered the banana zone. It's good to be
asset rich.
Here's some simple math (I'll post it because it's quiet and
I'm working on simplifying this communication for clients and some
courses I teach).
Middle class assumptions:
Year 0 annual living expenses = 100K
Year 0 assets in market = 50K
Year 1 asset inflation (market appreciation) = 10%
Year 1 adjustment to annual living expenses = 110K
Year 1 addition to assets in market = 5k (55K new total)
Net change in available assets relative to living expenses
(aka wealth) =
negative $5000
Wealthy / Elite assumptions
Year 0 annual living expenses = 200K
Year 0 assets in market = 1 million
Year 1 asset inflation (market appreciation) = 10%
Year 1 adjustment to annual living expenses after asset
inflation = 220K
Year 1 addition to assets in market = 100k (1.1 million new
total)
Net change in available assets relative to living expenses
(aka wealth) =
$80,000
Both groups experienced the same "positive" market outcomes
in the year, but the outcome is clearly completely different. Then
the wealthy congregate on CNBC, Bloomberg and elite circles
in coastal cities to gaslight the public about a "vibecession"
because they're having the time of their lives with real life asset
inflation that is only great for them.
Posted by DigiNomad on 15th of Aug 2024 at 09:46 pm
Anyone
else running a mostly delta neutral strategy? it's been wild! I
switched over to buying premium instead of selling it today. Not
sure I've ever made so many trades in a 9-day period. Burning up
the keyboard.
Posted by DigiNomad on 14th of Aug 2024 at 07:45 pm
META - I haven't looked at this chart in quite a while. Don't
remember when I added a channel but it wasn't that recently.
Backtesting.
*FWIW, my analysis has META with one of the most justified
valuations in the entire market. The chart suggests it's in a tough
area, but I'm not bearish medium term (long list of names on bear
list, but this aint one of them)
Posted by DigiNomad on 14th of Aug 2024 at 03:03 pm
Massive orders to neutralize their positions and just collect
the fees, for the most part (winning on the actual trade is just
gravy). When you have "portfolio margin" you can get
absolutely NUTZ exposure and long as it's neutral exposure.
They use algos to measure your risk which sets your margin
instead of hard and fast rules used for standard margin accounts.
Even the market makers follow the same margin rules (they're
supposed to) but imagine if your game is getting paid to make the
market so a broker can collect commissions without risk....how
large you can get with say a 1 billion dollar account that you are
constantly maintaining at delta neutral without hitting your margin
limit? Incredibly large.
The community is delayed by three days for non registered users.
Not much to say. We've
Pretty quiet around here without Steve and without Digi. I ...
Posted by DigiNomad on 20th of Aug 2024 at 02:00 pm
Not much to say. We've entered the banana zone. It's good to be asset rich.
Here's some simple math (I'll post it because it's quiet and I'm working on simplifying this communication for clients and some courses I teach).
Middle class assumptions:
Year 0 annual living expenses = 100K
Year 0 assets in market = 50K
Year 1 asset inflation (market appreciation) = 10%
Year 1 adjustment to annual living expenses = 110K
Year 1 addition to assets in market = 5k (55K new total)
Net change in available assets relative to living expenses (aka wealth) = negative $5000
Wealthy / Elite assumptions
Year 0 annual living expenses = 200K
Year 0 assets in market = 1 million
Year 1 asset inflation (market appreciation) = 10%
Year 1 adjustment to annual living expenses after asset inflation = 220K
Year 1 addition to assets in market = 100k (1.1 million new total)
Net change in available assets relative to living expenses (aka wealth) = $80,000
Both groups experienced the same "positive" market outcomes in the year, but the outcome is clearly completely different. Then the wealthy congregate on CNBC, Bloomberg and elite circles in coastal cities to gaslight the public about a "vibecession" because they're having the time of their lives with real life asset inflation that is only great for them.
Anyone else running a mostly delta
Posted by DigiNomad on 15th of Aug 2024 at 09:46 pm
Anyone else running a mostly delta neutral strategy? it's been wild! I switched over to buying premium instead of selling it today. Not sure I've ever made so many trades in a 9-day period. Burning up the keyboard.
8.33% higher in 9 trading
Posted by DigiNomad on 15th of Aug 2024 at 04:17 pm
8.33% higher in 9 trading days. We're so back.
Internals at the close
Posted by DigiNomad on 15th of Aug 2024 at 04:07 pm
Internals at the close
SPX 2hr - messy, but
Posted by DigiNomad on 14th of Aug 2024 at 08:21 pm
SPX 2hr - messy, but interesting look. I cloned the initial channel to form a 2x channel.
META - I haven't looked
Posted by DigiNomad on 14th of Aug 2024 at 07:45 pm
META - I haven't looked at this chart in quite a while. Don't remember when I added a channel but it wasn't that recently. Backtesting.
*FWIW, my analysis has META with one of the most justified valuations in the entire market. The chart suggests it's in a tough area, but I'm not bearish medium term (long list of names on bear list, but this aint one of them)
5 days, 5+%....so higher, obviously
Posted by DigiNomad on 14th of Aug 2024 at 06:47 pm
5 days, 5+%....so higher, obviously
Massive orders to neutralize their
Markets basically flat and lower VIX - Market makers killing ...
Posted by DigiNomad on 14th of Aug 2024 at 03:03 pm
Massive orders to neutralize their positions and just collect the fees, for the most part (winning on the actual trade is just gravy). When you have "portfolio margin" you can get absolutely NUTZ exposure and long as it's neutral exposure. They use algos to measure your risk which sets your margin instead of hard and fast rules used for standard margin accounts. Even the market makers follow the same margin rules (they're supposed to) but imagine if your game is getting paid to make the market so a broker can collect commissions without risk....how large you can get with say a 1 billion dollar account that you are constantly maintaining at delta neutral without hitting your margin limit? Incredibly large.
Lol - it's melting down
Algo is stumped. Someone forgot to code in exceptions for ...
Posted by DigiNomad on 14th of Aug 2024 at 02:40 pm
Lol - it's melting down