tag:blogger.com,1999:blog-897456774486153841.post3123293687223069165..comments2024-03-25T09:22:22.004-07:00Comments on VIX and More: Expanding on the VIX and the 10 Year Treasury Note YieldBill Lubyhttp://www.blogger.com/profile/01241003017364820134noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-897456774486153841.post-29874128842544600722008-03-17T08:48:00.000-07:002008-03-17T08:48:00.000-07:00SPX e-minis have climbed all morning from over 30 ...SPX e-minis have climbed all morning from over 30 down in the pre-market... and the cash VIX, up over 4 points this morning are now down a smidge (effectively unchanged from Friday). I may still be whacked hard today, but it seems there were bargain hunters buying today.<BR/><BR/>The biggest bargain hunter of all may be JPM, which is up over 10% thus far today, on its deal to buy BSC for $2... perhaps the wine of the day should be 'two-buck Chuck' in honor of that, Bill? lol<BR/><BR/>And why shouldn't JPM be up?! We, the taxpapers, are assuming much if not all of the risk (if I understand JPM's deal with the Fed), so I see this as effectively a transfer of wealth from BSC longs to JPM longs.<BR/><BR/>Interestingly, Jim Cramer doesn't seem to be impressed as I by the Fed's moves... read his post today on BloggingStocks and he wants more action. I have to take note of it, as I never thought he'd be so gloomy.<BR/><BR/>Hmmmm... rally seems to be failing since I started writing this. XLF was rallying earlier after gapping down on the open, but it seems to be taking the e-minis down with it. Not really the reaction I would have expected after the Fed opened up its discount window to Wall St.... if banks don't want to lend to the investment banks, the Fed is willing to be a source of liquidity. Shouldn't that be a good thing? ;-)<BR/><BR/>Perusing the list of the components of the XLF, the bottom of the list (in terms of the index weight) looks like a roll call of the financial companies that have been in the news (in a BAD way): MBI, ABK, ETFC, CFC, and now, BSC. Topping the list are two companies picking up some of these broken pieces... that is, BAC and JPM. Wealth transfer, again.<BR/><BR/>tntUnknownhttps://www.blogger.com/profile/08973121802521561266noreply@blogger.com