Sam B - Hillside CEO

Earth takes revenge on nuclear plants

Face it folks we don’t know “Sheet”!

Ever wonder if all the underground and underwater nuclear testing has increased the frequency of earthquakes around the world?

Ever wonder if all the underground and underwater nuclear testing has increased the strength of earthquakes around the world?

Ever wonder if all the underground and underwater nuclear testing has effected the location of earthquakes around the world?

When Earthquakes start taking out nuclear power plants I have to respectfully wonder if the “Giver Of Direction” whomever that may be isn’t trying to send us a message.

Smarter people than me out there but face it folks we don’t know “Sheet”

Give wisely!

Go to

Overnight ES Futures support and resistance predictions 3/14/11

Three overnight resistance areas to look at

ES 1290
ES 1298.50
ES 1303.50

2 support areas

ES 1282.50
ES 1274

Fair Value ES 1288


Nuclear Panic - Natural Gas’s Psycholgical shift

Despite hugh surplus’s the earthquake in Japan may be the longer term fundamental shift needed to get this commodity going. UNG ETF OR NG futures may be worth a look with a stop below recent lows.

Japanese Yen - selling opportunity

Earthquake flight to quality in the Yen could be a retest worth fading. Interesting potential blow off top in the evening session.

Flash memory

40 percent of flash memory comes out of Japan. Look for delays in shipments to drive Flash prices much higher. Maybe a semi squeeze coming. Keep an eyes out for the SMH and look for the QQQQ to outperform the SPY near term.

Earthquakes and Flash Crashes - the coming Mini flash crash. — Earthquakes come without warning. Everything could look normal, a picture perfect day and not a cloud in the sky.
Flash crashes are like earthquakes they come without warning. They are the outgrowth of poor diversification in those providing short term liquidity to the market place. We all trade based on our assumptions of liquidity. When we see millions and ten of millions of shares being traded in a symbol we are confident in our ability to quickly exit from a 20,000 share position. What if 75 pct of those shares were a bunch of computers ping ponging against each other all day. What if those computers just found it inefficient to trade that day. The depth of the order book is gone. No big institutional orders resting for our protection. No specialists, no market makers, not even the old fashion day trader to give you some liquidity. Poof its gone in a flash and the crash begins.

One thing is for certain after every earthquake there are going to be tremors. So if the trend holds, after every flash crash there will be mini (tremor) crashes. We all recently witnessed the flash crash and with that fresh in mind we will try to get out in front of something that looks potentially ugly and the Tremor Crash will begin.  Tremor crashes like the tremors that come after earthquakes have the warning signs. Some people get out along the way and that’s why they end up more contained.

Warnings: The world was over at 6600 Dow and now we are cheap at 13300, incredible complacency, Increase volatility, length in time of the up trend is excessive, Oil spike caused artificial strength in oils names. The oil strength was the reason for the recent out-performance of the SPY relative to the QQQQ. Daily 1 to 2 percent reversals of trend last few weeks are a setup to get used to the lack of follow through.

We are setting up for a quick 5 to 10 pct market move. Maybe I will be surprised and Gaddafi and Ahmadinejad will both go to Tibet and become monks and the market move will be 5 or 10 pct up but I doubt it so keep the crash helmets handy.

By the way we should be rooting for a quick and dirty flash crash to wash out the speculation. The slow and steady down draft is worse or at least from what I can remember from way back in 2008. Or maybe I just called the bottom with this blog. I will lose some money if it is and get out 1343 on the ES. 1200 - 1220 downside on the ES would be wonderful. The sooner the better.

CSCO matters!

Last two CSCO reports while considered irrelevant on the day of the event, ushered in a broader short term sell off soon thereafter. If history repeats we get a rally today in the SPY toping out at 132.50 and closing .10 or .20 cents below. Then a 3 to 4 pct sell off in the broader market of a 3-4 day period. CSCO could repeat with a low today of 18.95 and a 4 day low of 18.25. Then the bull resumes or fails (my bet resumes).

Just something to watch for not to go broke on!!

“88 percent of traders don’t make money. The other 12% cheat!” Bernstein 2010

“88% of traders don’t make money. The other 12% cheat!” Bernstein 2010

Insider trading is allegedly running rampant as Hedge Funds invent new ways to garner an edge.  High frequency computerized traders are gaming every imaginable aspect of the order execution process. Wall streets banks tell you that they make money trading every day for months at a time.

“if you don’t know who the sucker is at the table then it must be you”

The author of that last quote is unknown. I wonder whether he was the fish or the shark?

Hedge Fund Live Comes To Westchester

Jeremy can really take a punch. I haven’t seen anyone take more hits and keep coming back for more since Chuck Wepner the “Bayonne Bleeder” got knocked upside the head by Muhammed Ali.
Time and again he would corner someone…  “Hey Tim, when are you going to post a blog”? TIm would respond, “I’m following Steve’s lead”. JEREMY: TIm,what about blocking out a time for a show and putting it on the schedule?” TIM: “I will work my way into it “.  JEREMY: Tim, if you want me to f-off just tell me.TIM: Jeremy F-off.  JEREMY: Ok TIm, but you know Steve already has a show on the schedule so maybe you want to schedule one.TIM: Ok Jeremy I will get to work on it when I have some time.  JEREMY: Great TIm ,I will be back in 10 minutes and we can work on it.      or the next one…….
JEREMY:Hi Morris, how about we video a segment with you right now? You can tell us what you think about the Sephardic perspective on trading.  MORRIS: Huh???? JEREMY: Yeah you know, give the HFL audience a chance to get to know you. MORRIS: Uh ,I don’t usually do interviews.. its not really my comfort zone.  JEREMY: Morris, just make believe your at a bar mitzvah and someone sticks a camera in front of you and you have to congratulate the family.  MORRIS: Jeremy, I have to go the bathroom.. I will be right back.JEREMY: Thats ok Morris, the stalls have doors so we can just take the audio for now and do the video afterwards and dub it in back at the home office. Tynik, work with Morris!
And on to the next one……….JEREMY:Jerry, Tim ,here’s some notepads. Every time Cliff speaks write it down. If he makes any faces videotape it. Start noticing his mannerism’s and sayings and post it in his glossary. Don’t worry about the market… Cliff is good enough to trade without you and this is how you can really provide value to him.JERRY AND TIM: Jeremy, if we do that ,he’s definitely going to fire us!!  JEREMY: No way!! he told me that this is what he wants you guys working on.
And to the next………JEREMY:Jared, good blogs.. you need to do some more and coordinate everyone elses blogs and glossaries in your room……… Jared would never say no to anyone and obliges dutifully. Jeremy moves on to Perry’s room and Jared turns to Steve his boss and asks,” Who was that?????
And the next…………JEREMY:Hey Darren, you want to work on a blog?DARREN: No! JEREMY: When do you think you can start?? DARREN: Soon as I start making some money! JEREMY:Darren ,we recently did a study of all trader bloggers and we found that trading p&l improved by 300 percent for each blog a trader wrote.DARREN: Ok ,I will try and work on one when I can focus on it. JEREMY: Darren ,if you want to tell me to f-off just say it.DARREN: F-off Jeremy. JEREMY:No, not to my face Darren just write it as part of your blog!!
And next…………JEREMY:Nice blog Jody. Now thats some good content. Great stuff. How about you Jonathon ? JONATHON:I don’t blog! JEREMY: It doesn’t have to be about stocks. Whats your favorite movie? JONATHON:I don’t go to movies!  JEREMY:How about TV shows.. do you watch Entourage? JONATHON:I don’t have cable.. JEREMY: Well, maybe network shows then. JONATHON:  No TV!   JEREMY: Jonathon, you seem kind of quiet.. do you consider yourself introverted?  JONATHON: Huh???   JEREMY: You know are you a loner….  JONATHON: Well, im not going to come to the office and go postal or anything if thats what you mean!! JEREMY: Thats great stuff Jonathon, let’s get that on camera.
Next……….JEREMY: Cliff, would this be a good time to do an interview?  CLIFF: Not really Jeremy ,it’s 3:45 and I have 12 million in inventory and i need to get out by the close. JEREMY: Ok, I understand.. how about if we just do yes or no questions??  CLIFF: No Jeremy! JEREMY: Come on Cliff, you can just blink your right eye for a yes and your left eye for a no. CLIFF:No Jeremy! JEREMY: Ok, I will pick you up at your house tomorrow and I can interview you in the car.  CLIFF: For a blog?  JEREMY: No, I want to record it. CLIFF: You mean an audio? JEREMY: No, I want to video you. CLIFF: I don’t like to do video Jeremy.  JEREMY:Perfect, then I will meet you at the office and we can do it there instead!
JEREMY:Sam, I am so pumped about this business… your guys are the best we are going to make hundreds of millions on this project!!!                How can you argue with that logic?

Funeral for a day trader

It’s the Big Chill movie for traders. The house is packed with all the
kings of the prop world. The Shoney boys are in full force, sitting
alongside them are traders from Generic, First New York, Broadway,
Andover, Hold, Bright, and all the newbies are in the standing room only
section in the back. They paved paradise and put up a parking lot and
American Pie is the background music. Its not your traditional funeral
home there are no flowers. Its just a freezing cold room somewhere in
Jersey City with black cages and endless servers. Today’s eulogy is not
for any one trader rather this funeral procession is for the death of an
occupation that fed many people and now leaves them middle aged, out of
work, and untrained for any future careers.

Is the era of the day trader over?

Is the death of Hedge funds next?

What were the warning signs?

Will there be a second coming?

Man versus machine and the age of singularity?

What is Hedge Fund Lives’ role in all of this?

Over the next few weeks I will be blogging about this topic. Feel free
to chime in and share your thoughts