Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (13345)	9/20/2012 12:28:19 PM
From: Doo	Read Replies (1) \| Respond to of 33421

Chipper!! Come see me, when next you are in Wilder.

To: Chip McVickar who wrote (13345)	10/9/2012 7:47:41 AM
From: John Pitera	1 Recommendation Respond to of 33421

Hi Chip, you cover so much territory..... that it's impossible to repond in one post. fiirst of all only the real old timers are blessed to understand how Henry Volquardsen was arguably the very best asset on this site.... the guy was easily one of the smartest guests I ever met period..... and he had a street smart trading mind as well as a profound interest in topics from the 100 years war ... that he was reseaching..... to so many other areas. I was blessed by the lord to be able to talk to him on many days for 1 to 1 and 1/2 hours in 1986/1987. He was on the long dated FX desk in NY and I was physically on the AUD bond and bill desk, although I brought in not just charting but live tie charts on all of the futures, and currencies. In a dealing room of 80 people I was the only one who had a computer that had live time charting ability for the Australian markets, US key markets and key currencies.. If anyone in swaps or FX forwards wanted to see a daily or intraday chart on the AUD Long bond, the currencies gold, oil ....anything... they had to come over and have me pull up the chart and talk about RSI, ROX MACD......trendlines... support ...resistance on ad infinitum. I was a youngish guy and came from a futures background where charts and analysis tools where far ahead of the interbank market. he was trading for citi on 55 Water street. (WALL STREET)...he was trading spot currencies especially asia pacific.... and much focus was on the AUD and NZD... but he was on the long dated FX desk which means you are making a market in AUD bond's, spot AUD, and most importantly currencies forwards that are 2 to years ...... maybe out to 10 years. At that point, what is going to happen to interest rates 2, 3, 5 , 10 years out are more important than where the currencies are trading in the spot market. The big money as a market maker, and when you have customer orders..... the bid ask spread gets really big when you go 2 years out and 5 years out. and if you are lucky enough to be street smart enough to follow these concepts.... you have customer orders on 2 year 5 year etc.... currency forwards also know as swaps. when you are at citi or chase you have 2 way businesss on these forward transactions and you can capture really big spreads just offsetting the buy orders on one side against the sells on the other....... or you can lay off risk by hedging the difference in the spot and forward markets..... as well as the bank bill and 10 year bond market in the Australian market. I've worked with FX traders recently who think that everyone is speculating and is trading like a retail trader. It's a less that just about can not be imparted on these people who think the entire market is made from people making trades... with the unfortunate belief that everyone is trading... when 75% of the transactions are hedging and limiting exposure to the books that they have. This also exstends to the equity markets, as 90% of the people don't understand that with stock and index options, you can delta hedge and have stocks and anything with options are governed by the options when expiration descends upon us. ....Henry commented that you can take the most complicated derivatives/swaps and even more arcane financial instruments and he simply said all you have to do if map out the cash flows..... such as with a Venn diagram..... and you can deconstruct and make sense out of very complex banking derivtive products. ........I managed to sneak off to the atlantic coast of florida for over a week in late sept....into Oct and we did only the bare minimum of market and spreadsheet stuff ..... ... (inherently lazy like our commander in chief) -vbg- Hope to address a few of your other points ..... soon. Chip/A.... You are in the top 5 of the brillant minds on SI........ kudos. John