3309 Drysdale Ct
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Thanks for pointing that out, one would have gotten a completely different opinion if they read the remaining part: as follows::
stimulating analysis of Economics, Trading, Markets, Trade Automation, Systems. © 2009 m3, ltd. All rights reserved.
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long or short
marketguy - guess peter covered on thursday
Posted by vaellen on 26th of Sep 2010 at 06:07 pm
Thanks for pointing that out, one would have gotten a completely different opinion if they read the remaining part: as follows::
m3 financial analysis
stimulating analysis of Economics, Trading, Markets, Trade Automation, Systems.
© 2009 m3, ltd. All rights reserved.
Sunday, September 26, 2010
An example of coordinated deception
Clearly, Tepper is not trying to run money well, though he supposedly did get paid 2.5 billion apparently last year - which I do not believe BTW. He, however, clearly is trying to raise assets well and charge his management fee. So lets review:
Below is a chart of Tepper's AUM as presented by CNBS (kinda looks like they may have been making money right?):
Below is a chart of what Tepper's actual performance looks like represented in the charts above ( Now we know why the fund has a ridiculous name like Appaloosa and we can clearly understand why this chart only flashes on the screen for a few seconds as opposed to the other):
The guy took nearly a 50% loss on principle in 98 and several drawdowns that were much bigger. The fact that he can sell this piece of crap fund at all is a miracle. Apparently, the guy does not use leverage and generates this thing of beauty shown above. Just imagine if he really had to trade or invest or even used a little bit of leverage.
What I would like to understand is: What difference it makes for me to see Assets Under Management (AUM) in a nice smooth curve and annualized performance, again, in a nice smooth curve.Kernan talks about his annualized performance as if its legendary when apparently, these guys have to be using the peak high watermark performance shown in mid 2010 on the PL chart above to generate those false and deceptive numbers. The reality is that Tepper has no idea what he is talking about, runs a crappy fund and is pumping stocks...get ready to see another 100% swing in PL volatility on this chart.
The reason I am posting this is because people are getting all bullish again given Friday's action 0 especially shills and frauds like Tepper. My systems covered their shorts on Thursday afternoon and we closed a respectable week. Personally, I was favoring a consolidation up day on friday though the potential for a larger move would not have been surprising. The fact is that this was a much bigger move than I and most people were expecting and simply squeezes the shorts further to the wall and pumps idiots like Tepper so that he can raise assets for his trash heap called a Titan of Hedgefunds. The media is obviously in full regalia pumping the Bernake and Obama re-inflation wealth transfer agenda.
I do not change my view that we stand a the precipice of a substantial decline. My trading activity does not use opinion to make decisions but does use it to make allocation decisions. i.e.: how many percent of assets are we allocating long or short. Right now that view is imparting a bias towards assets allocated biased short if the models choose to go short. I believe that this will be another example of a false breakout, despite the deformed bullish inverse head and shoulders breakout that we have on our hands. One of the other reasons that I believe that is the downright parabolic topping behavior in momentum names that have been highly shorted like NFLX, BIDU, AAPL, AMZN, PCLN. The charts of these securities can not match any optimistic expectation of reality no matter how generous and positive a scenario can be painted. Shorts are being taken down in bodybags - these are the signs of a bubble and a top. What's more the shorts will not be there to buy the market when it actually begins its now obligatory implosion.