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TomServo

TomServo

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Blazin said:
Pretty much nailed it. Only add that large corporations often tap the corp bond market which is currently seized up so they turn to their lines of credit and max them out. The other thing they do was happening this morning in the credit market, and that is selling any other assets to generate cash. So other bond holdings being dumped (like muni's). Fed steps in to say "Hey stop doing that! We have all the cash you want" Fed makes the numbers huge to try to settle the institutions to not panicking and believing that sufficient money supplies will be made available.
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Thank you sir.
 
Blazin

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I just made first buy since early last week. Put $ into Russell 2000 small caps, which are down 22% this week, and are down 35% from the high.
 
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Furry

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Sanrith Descartes said:
The repo action basically buys (in this case) 500b (or a trillion, whatever the number is) of 3 month dated treasuries the banks are holding. Thus the treasuries turn to cash and the cash can be used to fund the credit line drawdown and the like.

At least that is my understanding of it.
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That's one way of putting it. Of course hedge funds would never ever bundle their junk securities like mortgage holdings and bonds they view as worthless into vehicles to sell to each other and the fed and then gamble the money they get on leveraged bets to try and return to solvency. I mean its not like that happened in the last recession or anything and then liquidity started drying up this time because banks saw the same signals and viewed this as very risky.

Fed is here to save us, look how much the market believes it.
 
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Pops

Pops

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Oh look no recession! Depressions do that to you.
 
TJT

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Looks like we'll get to pick up some DIS tomorrow in the $80's.

Unbelievable.
 
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Khane

Khane

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I'm kind of kicking myself for not creating a new brokerage account to throw some money in SPXU like I was planning on doing. All of my money is with Vanguard and they discontinued trading on inverse and leveraged ETFs in 2019.
 
Khane

Khane

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That would require coming up with a strike price and duration and having to cover. I'm not normally an active trader and had no confidence in my own knowledge of the situation. I wouldn't have put much money into SPXU anyway so it's really more of a "what if" kind of musing than anything else.
 
Blazin

Blazin

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With so much else to play I just can't get myself to go anywhere near the cruise lines. Futures are rallying again, I really hope we don't have another up 5% day because it's still too early in crisis and we'll just fail again. Market just needs to hold ground let the vix calm down and wait for more information.
 
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Furry

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I just can't see volatility going away. People are all nuts about this virus and we'll probably get some big swings up and down just like we've been getting. Having a calm day would almost feel weird at this point. I also really think the fed has lost the narrative, which makes me scared they might do something dumb.
 
Locnar

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Caligula_The_Cat said:
Wonder how much further RCL will drop. Hard to hold off at 29$ a share
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I'm wondering the same thing about NCLH at $9.65 especially after learning (from these forums) that if you have 100 shares you get some free onboard credit each cruise, and I have Platinum status with them anyways and usually only cruise them. Not that should be a reason to invest in them, of course, just a perk. and 100 shares have never been cheaper (but are they going to get cheaper still?????)
 
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Sanrith Descartes

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For those looking at cruise lines, might be a safer play to buy a couple of call options. Less money at risk if the stocks keep deep sixing.

I did it instead of buying RCL and considering how wrong I am looking I am quite happy my exposure is as low as it is.
 
Sanrith Descartes

Sanrith Descartes

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I am actually an owner of Apple now. I set a limit order at $250 pre-market never believing for a minute it would strike. Dammed if it didn't. No one anticipates 10% down days.
 
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P

Picasso3

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Sanrith Descartes said:
For those looking at cruise lines, might be a safer play to buy a couple of call options. Less money at risk if the stocks keep deep sixing.

I did it instead of buying RCL and considering how wrong I am looking I am quite happy my exposure is as low as it is.
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I only buy a little bit if I want to limit my exposure. In the 0 commission days I don't think that's as retarded as it sounds.
 
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Sanrith Descartes

Sanrith Descartes

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Caligula_The_Cat said:
What did you set your call options at?
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I bought them after the first week of downside. Strike is $120. The only saving grace is they are far-dated (Jan '21 expiry). I figured this would be a 3-6 month event for the cruise lines and I would have the 3rd and 4th qtr to rebound. I'm down about 60% as of the close. They are so far out I just kind of ignore them because I know they are in the shit right now. I pulled the trigger on the trade too early.
 
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