‘He tried to bury the tape because it made him look reckless in a professional world that punished swagger. Twenty years of legal effort did not delete it. Someone kept a copy. It is on YouTube. It has fewer views than most makeup tutorials’
3 Communists walk into a bar, one orders a $15 mixed drink, one a $10 Martini, and the other a $6 beer. When the bill comes, based on their mantra, they are forced to split the bill equally.
Next week, the three, once again, return to the bar, but this time, they all ask for separate checks, so the bartender asks them, why aren’t they splitting the bill equally, since in communism, everyone pays the same fair share. The three communists reluctantly agree, and once again split the check 3 ways.
The following week, the three communists return, but with a mob of devoted followers, and protest the bartender, to change the prices of all their drinks, to the cheapest drink on the menu.
In fear of his business vandalized or burned down, the bartender agrees. So the following week all the communists come in and enjoy their $6 equally priced drinks, and celebrate the successes of communism.
The Communists continue this for several more weeks, until one Friday they return to the bar, to find it closed, with a sign out front, stating that the bar is out of business.
And that comrades, is how communism works.
99% of options traders are gambling because they never learned the fundamentals.
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Fairly fascinating commentary from Simon White of Bloomberg:
“Putting gamma, realised correlation and dispersion on the same 3D grid shows that as far back as we have data (to 2014), correlation has never been as low when gamma and dispersion have been as high.
The green diamond in the chart below is the latest point. The alpine peak just below that is from 2021, the only other time the three risk measures have been nearly as elevated as they are now.”
In summary, the entire rally from the March lows has been built on a “mechanical chase.” Without real spot buying, market fragility could be exposed quickly when the stratospheric gamma squeeze ends. This is a complex topic for many, but traders should know that if breadth remains weak, any mean reversion could be dynamic.
Have a lovely Tuesday. 😊
NOTE:
“the entire rally from the March lows has been built on a “mechanical chase.” Without real spot buying, market fragility could be exposed quickly when the stratospheric gamma squeeze ends.”
My “Flows Over Fundamentals” framing since March 30th lows.
In 1985, Warren Buffett sat down for his most iconic interview ever.
If you want to understand the psychology of wealth, this is 10 minutes of pure gold.
Save this rare footage, you’ll be coming back to it.
Before you think about stretching a single rule, you must master every rule. This is the most important piece of advice you will ever get. Discipline is the quality of greatness. If you can't be 100% disciplined, you will never become a master.
"This all fits into a story that's been emerging from China's AI scene since the beginning of this year ala DeepSeek..."
Yupper. I wrote at length about it in Jan 2025:
THIS IS THE MANHATTAN PROJECT 2.0
https://t.co/NXzg6cZPSp
And no, "China's AI scene" is not priced in.
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Please repost to help others out there! ♻️