Rattlesnakes and risk

There’s an old saying in the news industry. Something like dog bites man isn’t news, but man bites dog, now that’s news.

I couldn’t help but think of it when reading this trivial story of a Wal-Mart shopper being bit by a rattlesnake in the garden section of the store. Brush away what you think is a stick and lo and behold, there’s a rattler attached to your hand.

No one likes a dangerous surprise. But how to avoid them?

As a trader it entails doing your research and staying true to your principles, making risk management a priority over all else and never forgetting this is a risky business.

Easier said than done. Risk frequently presents itself in the most unexpected ways.

Bring me the head of Jon Corzine

MF Global went bankrupt on Halloween and six weeks later, no one knows nothing.  Well, not exactly.

We know the firm’s segregated funds weren’t so segregated after all.  Maybe $600 million.  Probably closer to $1.2 billion.  Definitely no surprise if it turns out to be an even greater amount.

We know confidence in the futures trading industry is pretty well shot.

We know Jon Corzine’s bearded head on a platter would make a wonderful last-second gift for many, many investors, brokers, managers, and advisers the world over.

But we don’t know what’s next.

The government and regulatory agencies have finally mobilized after hemming and hawing for weeks but the damage is done.  We want answers and there are apparently none to give.  Solutions will not be had for the time being, leaving those affected by Corzine betting it all on black and his ego stuck in the resulting muck with no way out.

$600 million, $1.2 billion, whatever it may amount to, it will never truly and accurately represent the losses accumulated this last month and moving forward.  No subpoena can rebuild the extreme loss of confidence in our industry or erase the fact the system found a way to fail.

U.S. Economy continues to slog along

I’ll frequently visit Bloomberg.com for news updates and today’s front page was a bit disconcerting, if not shocking.  Not much good news for the United States economy:

The U.S. economy.  Feel the excitement!

I’m laying the sarcasm on pretty thick, and sure, while there will always be problems and things can’t be expected to hum along perfectly, the issues of unemployment, astronomical debt, and rising gasoline and food prices don’t seem to be going anywhere.  The stock markets frequently help to combat it, but there’s an unmistakable scent of decay coming from the U.S. economy.

How long can we hold our noses?

New highs in the “MEEI” = buying opportunity

Tunisia.  Egypt.  Libya?  Bahrain?  Yemen?  Saudi Arabia?  Iran?  Who’s next?  Does it really matter?  How many questions marks can we use in a row?

Surprise, surprise, the Middle East is unstable.  Sure, the highs in an imaginary Middle East Instability Index (MEII?) would be pushed this week, but as we’ve frequently discussed at BLSH headquarters (think of a way less cool Bat Cave,) it’s quite the buying opportunity in the oil market.

And the gasoline market.

And the heating oil market.

Fear is running rampant and prices are flying high.  Things are certainly crazy and they may very well get crazier.  Get on the right side of things.

Buy Low Sell High – The Blog!

Our first blog post.  Pretty exciting, really.  What should you expect?  Information, to start.  If we find it interesting, we’ll write about it.  The goal as always is to help you make money.  Every bit of insight provided, each discussion created, helps reach our goal.  Sometimes offbeat, sometimes deliberate, our posts will always strive to get your wheels turning.

You’ll see new posts in this space about once a week, probably more.  Please always share your thoughts below in the comments, or contact us directly at info@buylowsellhigh.net with any feedback.  Thank you for reading.