WORLD'S GREATEST TRADER, WHO WOULD YOU GUESS THAT IS?
Bernanke, and or the Fed?
Paul Tudor Jones?
These are certainly the names that cross my mind when I think about who makes the most money trading. However, there is one that is not on the list that apparently is blowing everyone away. This is from Zero Hedge to properly cite the source.
From the just released Bank of America 10-Q: "During the three months ended June 30, 2012, positive trading-related revenue was recorded for 95 percent, or 60 of the 63 trading days of which 75 percent (47 days) were daily trading gains of over $25 million and the largest loss was $11 million. These results can be compared to the three months ended March 31, 2012, where positive trading-related revenue was recorded for 100 percent (62 days) of the trading days of which 95 percent (59 days) were daily trading gains of over $25 million. There were no daily trading losses recorded during the three months ended March 31, 2012." This vaguely reminds us of the JPM's trading performance. Just before they got busted for hiding a $350 billion hedge fund in the firm's "risk hedging" aka CIO/Treasury division that is. Also, if anyone else has problems believing that BofA's trading desk, with or without Merrill, both of which are better known as the C-grade (and that is being generous) of Wall Street traders, could generate profits on 122 of 125 trading days, please lift your hand.
I have been working on some very good new approaches that are incredibly accurate, well north of 80% winners. I am very excited about it obviously since it is going to enable me to get back on top after the PFG theft quickly. However, it is nothing compared to this above track record.
I can tell you from having been at this for a while, that this is impossible. Nobody is or will ever be that good. A few things could explain this, but there is one that I think has the highest probability. Is there anyone who reads here regularly, who does not know what I am about to say about this?
How good would your trading results be if someone told you in advance when a major buy program was going to be launched in the ES Futures a few minutes before hand? We know that virtually every stock rises when the indexes rise now, so if you had a "little friend" who informed you of when everything was about to rise, wouldn't it be pretty easy to just click the mouse in a few stocks just for kicks and giggles? We know the banks are in the inside game with the Fed and it is my suspicion that they are made aware of the Feds coming moves in the markets in advance, and they front run them. The only other explanation for this is that there is fraud involved in this report.
Knight has been given a temporary life line by JPM, no coincidence there. I would bet my life that the government was involved with that and at this point they should be. They cannot allow the commodities business to vanish from the earth. If there were to be another seg account theft, you could turn out the lights on a multi-trillion dollar industry. On my list of phone calls I would love to get, would be someone calling demanding I send back the money of mine I pulled out right before this house of cards collapsed. If there were to be some mishandling of seg funds here, and there is no evidence at all of this at this point, I would not want to be the person clawing back money from PFG victims who had opened at Knight. I would threaten them in a way not appropriate for me to even state out loud. Let's hope a back door deal gets made and this firm survives. My money is out of there.
I am trying to figure out now where to put my second half of my trading money. I will post in here where I decide to go once I have made that determination.
As for the markets, Bond Trading Service members have gotten 2 nice wins this week, so it is off to a good start. I shorted Heat Oil in the trade I posted, and Crude yesterday in a day trade and made money in both those trades. I did not have much for today. I was looking to buy Gold but the stop is too big, and was also bullish on Cotton. I was tempted to get long the Russell but it just did not quite meet my rules, so it was a no go. I am hoping we get small rallies lasting a couple of days to set up some shorts. At the time being the shorts are just not setup in my world correctly.
Everyone have a great weekend and hail the King B of A. Maybe they should host a seminar and teach us what they are doing?