Straight and the Narrow

The markets have rallied as Fed and ECB combined to ensure sufficient liquidity in the banking system. The Greece and Italian debt problems have not been resolved but the collapse of the international banking system has been averted---for the moment.

Yesterday, there was this news about a rogue trader in UBS causing a USD 2 billion loss. This made me think. You know that one of my favorite quotes is "A Villain is a Hero who has overstayed his welcome". Similarly one can say "A MD is a rogue trader who made money" or "A MD is a rogue trader who did not get caught" I mean consider this. Until day before yesterday this same rogue trader was someone who was a respected trader working in one of the world's premier bank. Until yesterday he did not have the tag of rogue trader attached to his name. How do we know therefore that there are no others out there who are systematically exceeding their limits in pursuit of profits or that there are no other rules broken? The only rule of the game seems to be that everything is allowed as long as one does not get caught or as long as one does not get too greedy. Rules can be broken but within limits.

Despite this, I stick to my limits and trade well within the rules.... Ram/Jacob please note :) I deserve a few brownie points for sticking to the straight and narrow! The way the markets are going those are the only brownie points I am going to get today. I am short and will cut my short positions and go flat if the first hours high is taken out. No going long today.