Thanksgiving Day Trading Dangers $SPY, $VIX, $VXX, $DJX

Many investors are travelling and emotional levels are heightened. If you have reached the point of frustration where something needs to be hurt if not killed than short selling is probably not the best investment idea for you. Just go to the bar. Order an expensive cocktail. It will be expensive at the airport. Contemplate the selection of drinks available versus what is being ordered. Backtrack to the bottler, distillery, vintner or purveyor and determine if you are identifying a viable trend. Order a second round to confirm suspicions err analysis.

Then WTF just watch the news crawl and don’t do anything stupid.

George Gutowski writes from a caveat emptor perspective.

Volatility Slow Seduction. Whores must eventually be paid. $VIX, $VXX, $SPX

The market keeps going up. Opinion polls show bullish and you know what that means. Volatility such as VIX and VXX continue to decline as the market goes up and up and up.

Hush my children do not wake from this wonderful dream.

Markets go up and up and up forever. Everything goes in a straight line. Just like an out of control train speeding ever so quickly heading over the rickety bridge over a deep abyss.

The last little bit of sexual climax is the most intense and the most exciting. Eventually your partner in bed will want to be paid. Were you good? was she worth it? She” continue wit the compliments until next time.

George Gutowski writes from a caveat emptor perspective. Follow him on Twitter @financialskepti. Needless to say he is not a raging bull. Well at least not today.

Alcoa walks point. Does Alcoa attract volatility and hurt shareholders? $AA $VIX


Image via Wikipedia

Alcoa (NYSE:AA) is about to announce quarterlies. It has become the traditional kick off for earnings season. Alcoa is the first major to announce and market pundits start to blog, twitter and spew. They attract a lot more attention than other majors.

In effect they walk point on the jungle trail. The enemy sniper sees them first. The enemy the booby trap gets them first. Alcoa comes into hot contact with the marketplace first. Inadvertently they attract a lot of attention which creates volatility because of their self selected earnings announcement timing.

Are the shareholders well served by this. Probably not. This volatility has nothing to do with the business risk of Alcoa. Why would an investor want to accept the risk?

Note to management. Stop going first. You have no obligation to feed the news cycle and you are probably hurting your investors. So stop it already!

Disclosure: George Gutowski writes from a caveat emptor perspective. I hold not positions in any stocks mentioned in this post. I hath no plans to initiate new positions within the next 72 hours.