Thursday, October 1, 2009

The Fed Days Are Numbered: Straddles to Protect Your Investments

Michael J. Panzner (HSBC, Soros Funds, ABN Amro, Dresdner Bank, and J.P. Morgan Chase, and a New York Institute of Finance faculty member) was discussing about the end of the Fed back in July. Rumours today are that talks are intensifying about the financial elite and this may be happening sooner than many think:

"with increasing vigor, these [insider] sources are indicating that an actual date and agenda have been put in place to facilitate this transition. As a result, the elites are jockeying for pole position while trying like heck not to spook the "sheeple." "...Those very reliable sources are now putting the word out to those listening...a transition is actively in the works. At first this topic was a trickle that I watched for a couple of months, but now the flow of information from these sources is increasing and the message remains the same; warning for a bumpy and confusing transition (no surprises there) followed by an emotional release as the people of the world realize that life, and business, go on. Assets of value are not going to suddenly become value-less without the Federal Reserve elitists controlling the markets. How is such a coup supposed to look anyway? Apparently, a lot of hard work and effort (both from within the US and internationally, particularly from Japan) has been going on behind the scenes toward ridding the markets of these parasites and much of that work has been focused on dealing with the potential and temporary fallout... ie, removing the parasite without killing the host".

The appeal be the Fed agaisnt the judges's release of information order, the 'Audit the Fed' movement by Ron Paul, it is all happenning all of a sudden.

There is no proof yet of anything yet on the first paragraph above. However, the markets are almost capitulating. CIT is on the ropes (more later as we had starddles on that too)). It is always good to protect yourself. While many, or it seems, most investors are quietly keeping their money under the mattress or in money market funds given the anemic volume in the markets. This may not be the best option given the chaos in the currency market. A sudden devaluation is possible. Against what is the question.



Here are straddles/strangles for October and November. These would greatly benefit from any volatile move on the markets. Our favorite is IWM, for its liquidity and speed to trade. XLF is the most expensive and requires the highest maximum move.










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This is not advice. Options are dangerous. Please do your own due dilligence.

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