Dec

8

Relative to most of you, I do not know much about trading. My work during the past seven years learning how to design and engineer a program trading system has been in stead course not to trade (in a trading sense).

That said, during book research these past two years here in China, I recall one particular, personal tour by the manager of a sixth nationally ranked securities firm’s branch office.

Working our way to central ops, we finally arrive at the trading room.

When introduced to the head trader, I asked him why he was successful. I noticed most screens in China displayed variations of MACD.

1.3 billion people (or maybe .4 or .5 or .6, as no one seems really sure, as I guess there are too many to keep track), represent the “potential” largest world’s financial services and investment market. Still, today, the giant paper wealth generator here appears to ebb and flow along this one, rather dated indicator.

Aha, I notice the firm’s star trader has Bollinger Bands on display. Is this the secret to his success, I press?

With his boss, my friend, peering across, he sort of shuffled in his chair, looked down – Chinese here seem to do that a lot — and mumbled about the government.

When we head back down the hallway to the office, I asked “what the heck” was that guy talking about?

I was told that he said “supply and demand.” OOOKaaay… and so…

Privatization a la Red Chinese Corporate Buffet means that the government sells one third to some trusted party member(s), retains one third, and sells as little as possible of the balance to create enough interest… so they (party and government) can then go and dump stock (reportedly at times against proscribed rules) once prices rise.

Who’s money are they taking? I read news here of a national study that reported 80% of Chinese market investors lose money, so I guess “who” would be all the little people with big dreams (and foreign dopes).

Translated and processed regarding our head trader? Perhaps he has inside info with government minions?

Who knows? Who cares… the system is a parlor game. You know this when you walk in the door.

How? As an American, relatively speaking, I find that Chinese securities firm branch offices present a Feng Shui blend of bus station and race track décor and ambiance. Enough said – though, also note a hint of Italian bordello-ish-ness.

This last impression must be a Chinese subtlety for reminding one that lawyers are of no use here – they don’t seem to be very welcome throughout China, come to think of it.

That’s odd… I am noticing reams of HR listings for lawyers needed in China.

Note to self: what is mortality rate of foreign lawyers here?

The central government must have numbers on this… notice how quickly they get out key economic reports for worldwide consumption… almost like tomorrow’s news today… You don’t think they are…?

Alternatively… back to the foreign lawyers, Bleak House (Revisited)? The China version (or syndrome)?

I SHARE ALL THIS but I cannot say how it might relate to girls and boxing. Love that title though — smart guy…

I only comment that we might keep in mind our star, head trader’s cloaked wisdom (“supply and demand”) with regards to redemptions and recognition (not just realization) of subsidiary insolvent banking channels yet to drop onto one of many Florida-ballot-chad-like balance sheets.

Perhaps markets and traders have insights that “enable” (an AA clinical term, ahem…) all that detail stuff… many certainly seem to have done so swapping back and forth derivatives.

Hmm, let’s see, we bought it today for $52.50… must be worth $54 tomorrow… Just look at the real estate market. Right, that’s the ticket…

Hey, as long as I am getting mine, who cares — heard and saw a lot of that thinking during recent years as well.

Kind of like musical chairs, right up to the point where the leasing company shows up to take the chairs back… and the piano… and the karaoke machine… and the espresso maker… and the Warhol… and, well, just take it…

Not sure if this is any consolation, but I know a guy who has been in the securities markets for 30 years, tour in Nam, went to lot better schools than me… He says the support level is around 7500; if that breaks, 5500.

Can we watch the boxing match now?


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