Wednesday, January 19, 2011

The Charming Sound of Hungarian "DONTBLONG"

2011-01-19_2104 A study is made of the equilibrium of a capillary liquid that partly fills a container and is in contact with several isolated gas cavities. The conditions of its stability are obtained with allowance for the change in the internal energy of the gas when the free surface is perturbed. The analysis of these conditions is accompanied by the solution of examples.

Translated from Izvestiya Akademii Nauk SSSR, Mekhanika Zhidkosti i Gaza, No. 3, pp. 4–9, May–June, 1984.


That is when change is coming into town – when everyone is overly contempt with New Laws Of Rigged Game – Up Up Up and away…

The only problem with widely expected QE2763 is that laws of physics and math (as "whatever energy was deposited into one bank volt was taken from some other place and might be reclaimed sooner or later" and "billions added to insolvent banks were subtracted from you and me and patience is not limitless" (As oppose to human stupidity according to Einstein)….anyhow – enough of this Hungarian Mumbling – just thought it might be appropriate after me misbehaving all around blogosphere yesterday…


Now – on a little more serious and sober note – take a look at VIXometer's chart – this "complacency level" of around 15 has provided quite a burst in volatility energy in the pas and it is holding now since the end of last damned year.

Also, deserving attention that HUGE falling wedge – patterns of such duration and magnitude cannot be faked – they WILL resolve according to traditional technical believes – the hardest question to answer because of duration is WHEN.


I'd say my expectancy was to go short last week, then I re-evaluated it to the beginning of this week – and I slowly building long puts position…yet again…





The Answer I'd like to know … are we seeing disconnect between falling dollar and market not capable of rallying on that normally reliable tidal wave?





P.S. NOTY ask me what are those formulas at the top of the post – I have NO IDEA!

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