Houston, Do We Have a China? | Sosnoff & Ratigan Podcast

[Music] [Applause] [Music] [Applause] hello everybody we're back truth or skepticism dylan radigan in the house when's the last time you left the country two years ago three years ago i mean it's been a long we've had you locked in your house for a good couple of years i gotta figure it you didn't leave the country in 2020 did you uh i got i i was in india for new year's 2020. okay so you haven't left the country since you're in india 20 of the january 2020 shall we say when i got home from india was the first week of um january 2020 and i haven't did not have not left the country until this past weekend and so at that point we just locked you in your home strapped into your terminals and left you there fed you water and some vegetables and that was about it you leave down um one year and nine months that's right and now look at you look fantastic you know you're you're you it's been good for you we just got to leave you locked inside strap you to your water and carrots you'd be fine now you leave town for two days leave the country for two days and the whole market takes it straight in the beak okay you got the lehman brother they're calling it the lehman brothers of china with all these ghost cities and god knows no one even knows what's really going on it's all a bunch of hocus pocus crypto taking it straight in the beak okay i'm talking like whoo right right in the kisser okay i mean grants come all the way back i think today or halfway back anyway so the whole thing who even cares but anyway my point is you know it's been pretty quiet we had sort of was reaching for straws looking for things to talk about hey there's no volatility hey there's nothing to sell what are you gonna do you leave town all of a sudden you got yourself a little something going on um is this just a couple of days of choppy water or or do we have a china syndrome on our hands we gotta do we have a problem sir well i think that's actually a great discussion topic because that's relevant you know i like topics when when people can um when they're actionable and i think that's that's a very actionable you know this is an actual discussion um do we have a china on our hands and the answer is no like when you say do we have a china hands i i'm thinking about like like china large cap stocks and i'm thinking about you know um a fundamental shift in the way their free market structure works and the answer is no we or a financial vacuum of giant fraud a vacant ghost cities for bad balance sheets you know all that all the old school kind of problems that uh you know they like to come up with in them in new york and some navy ships well part of that problem with with china is that you know it was a it's a relatively new it's a relatively new economy and so you have to think that there was you know it was you know layered with potentially different cracks throughout and there was you know and and it doesn't surprise me that some of this stuff kind of poked its head up but so that part doesn't surprise me but but we're not china because there's not a fundamental change to um there's no real fundamental change to to our to the structure of our economy in our markets right now we are not in the process of quote finding ourselves like china is so so the answer there is no but but the question is is it a smoking gun what happened you know on the everground uh uh is is that a smoking gun that is the question yeah and and and i guess to a certain extent you know when you go back to 2008 just because it's the only thing relevant was or it's the closest thing we have was that a smoking gun for chinese stearns was the first thing to get squirrely in july you mentioned lehman but was bear stearns and lehman going down in 2008 did what impact did that have on china like i mean if you remember i'm not saying that at all i'm just saying you know to the extent to which bear stearns in china will represent a certain value and a certain default risk and a certain credit profile i understand yeah i understand just saying to you when bear stearns and lehman went down in 2000 end of 2008 2009 and there were a bunch of other firms on on the brink what i remember the strangest thing about that move is that the u.s volatility actually got higher than china volatility so like like just to put things in a little bit of perspective right now um let me just show you china volatility just looking at it so china volatility is we'll use november as china volatility is about 37 percent and s p volatility is about 20 in using november volatility let's say 22. so you're talking it's it's it's over 35 higher which is where you know which is where you would think china volatility should be as at least you know 20 25 30 higher than u.s volatility well in 2008 end of 2008 2009 chinese volatility was uh a u.s volatility was 20 higher than china in fact i gave a whole lecture on it in two end of 2009 end of 2008 i said you know if you want to talk about opportunity right now you should be selling china and buying the us because there's no way that we can maintain a 25 premium over chinese volatility whenever when all the dust settles it's just not possible this is going to have to go the other way so i think right now that that if you look at a 35 or whatever is 35 or 37 premium in china i think that's too rich so you're about you're a china buyer or you're a seller but like in other words you say this you like this conversations because it's actionable yeah you know what's the action i'm a china buyer but are you also a china volatility seller well i can't sell china volatility other than other than options so so the answer is yes i'm selling options in chinese stocks but with also with long delta log delta fxi or where fxi is one of them um fxi is my longest delta china play right now but but it's all it's mostly all short calls and short puts with the short puts big being bigger than the short calls and again i'm only bringing that up because right now chinese implied volatility is you know 35 or 37 percent higher than u.s which to me seems at that's the highest it's been in a long time and it seems weird it should be a little tighter than that maybe like 20 but not 37 percent that's all and is your confidence in china other than the extremity which i'm sure you're going to say well it's just a matter of extremes and it's just a matter of pot odds i get that but do you think you also have a sense that the chinese economy is relatively intact relatively you know that it's not broken in any meaningful way despite the government shenanigans this year and whatever is going on with this evergrond well they've been um i i don't know the level of i'm not sure i think i think it was almost a shock situation so i think in china and i and and there was an interesting new york times article on this this morning but it's been um it's been discussed about in the financial markets for quite some time you know people thought the chinese market especially real estate market was overbought going back over 10 years ago like people were talk people in the us were calling for kind of a crash in chinese real estate as early as 2009 2010 and for the last decade uh the the chinese government has been able to prop up the real estate market to the extent where people go well you know maybe it's never going down you know one of those arguments maybe maybe maybe they can just the same freaking argument that they give in the u.s stock market which is we're going to prop it up forever maybe it's never going down yeah it's the same like you almost sit here and you and you listen to them talk about you know in the media talk about the way they they talk about chinese real estate the way they use the i'm sorry the way they the way they've always talked about chinese real estate is it can't go down because the government's going to pop it up do you remember i think you're too young but in the early kind of early to mid 80s when i first started trading and the japanese real estate market exploded totally exploded and the stock market went crazy i can't remember went up to like 30 000 um or the nikkei went to 30 or 36 000 or something and you know a block of real estate in tokyo was worth more than you know the country of australia or something whatever they sold their embassy to repay the debt you know crazy numbers like that well they used to say the same thing the market's never going to go down in tokyo so you could buy it that you want because the government's just going to support it and then they you know two decades later they say the same thing or three decades later they say this are two decades later they say they say the same thing in china about the real estate market and then another decade later they say same thing in the u.s about the stock market i mean doesn't that argument like who believes that and i sit here and listen i'm like i mean i mean i know i don't want to take you back to 1985 or 87 or whatever it was in in japan or 19 whatever in china or you know 2010 in china but this is what they've been saying percent you know for for decades and why is it any different the u.s stock we're not propping up the u.s stock market so basically the chinese hold on hang on you're going to come here on a day when the federal reserve just 15 minutes ago came out and showed that their balance sheet is exp has expanded substantially a hysteric would say is it it has exploded that the federal reserve now owns as much of the u.s debt as the value of 37 of the gdp of the united states which is still the biggest economy on earth i mean there is a case to be made that the federal reserve is propping up the u.s stock market which is about the size of half the world just so you know so 36 percent of the gdp is probably the equivalent to about half of the whole world so so the use of half the world economy is being purchased by the federal reserve need not to mention the trend is a massive increase in federal reserve buying of securities and bonds specifically i mean is that not the definition of propping up um it sounds like it but the answer is no interesting interesting it sounds like it but the answer is no because because the everything is bigger than it used to be and so um uh um so and everything has changed over time so the way that we the way that we run the central banking system and the way that we run the treasury you know those numbers i i don't think those numbers surprise me i just don't think that you can count on that but how is it popping up well it's only propping up because you say it's propping up like the purpose of what they're doing is not to prop up markets the purpose of the purpose of what they're doing that that is not the intent of what they're doing that that may be the side effect or the assumption of the side effect that may be how how the media portrays it but that's not again that's not sustainable so then what happens when they when they stop you know so let's get back to china just for a second because this is the same scenario it's interesting scenario there so do they so so they've been propping up the chinese real estate market for let's say the same argument can be made by the by the financial media that the chinese government's been propping up the chinese real estate market for the last 10 years so now you run into a situation where this one company which is the largest player in the real estate market is about to default so does the chinese government come to their rescue of which they said they're not going to right my point is so does that throw does that mean that everything it's it's all over like like everything goes into crash mode because you know because because it's already built into the equity prices there so does that mean that their entire real estate market's about to imply i guess my point is that for years the chinese government's been it's been said they're probably at the real estate market they're not propping up the real estate market they've just been they've just been throwing liquidity into the system okay doing what they think they need to do with and the and the side effect or the impact of what they're doing has people have said okay this is propping up the real estate market because the real estate market's been in a bubble same thing as the stock market here in the u.s the the what you see is the story built around oh they're propping up the market so we're in a bubble so it can't go down but that's not really what's happening no you gotta try harder this is not working at all i gotta be honest you're you're you're sitting here telling me that all they're doing is throwing the i understand i think i understand what you're saying which is that their intention in injecting liquidity is not to support asset prices their intention is not just whether it's a chinese central bank or they say it as well as i should have i give you that yes the intention is not to support asset prices thank you very much so what is their true intent just so i understand what you think their actual intention is whether it's the fatter in shanghai the intent in both places is to maintain a liquid and orderly market it's to maintain marketplace efficiency so that the economy stays so that there is a reason to participate you know in the economy so so that so people don't back away it's a reason to attract whatever it is international business you know trade whatever it is it's that's the whole purpose of of providing liquidity that's the whole purpose of providing marketplace efficiency that's the whole purpose behind behind creating the integrity of the marketplace it's all to protect to maintain a consistent and highly engaged marketplace exactly it's all about maintaining the integrity of that marketplace as it there's no way that any central bank or any treasury or whatever it is or bank of china whatever could ever set forth a goal to maintain asset prices that's why it's so important for them to almost let this company um blow up and go under because that dispels the whole myth of that they were propping up the marketplace but at the same time i don't wanna i can accept that i mean i i'm just gonna go with this but so the intention is you know liquidity for orderly markets and in velocity and engagement and all the things an obvious byproduct of that is going to be asset price inflation at least in selective markets whether it's stocks or real estate or commodities or maybe it's all assets depends whatever true you agree or disagree asset presentation is a natural consequence of central bank liquidity injections when the liquidity injections go on for too long meaning they they read their own press clippings this is what happened in japan this is what happened in this is this is this is basically you know as what's happened in china and to a certain extent you know i believe this is what's happened with u.s equities specifically tech stocks is that you start to read your you start to become just you fall in love with your your own mechanics you believe your stock can't go down or your or your house price or whatever you believe the asset price only is is is mono-directional and that direction is up you you lose you get away from the reason that you start in the first place if the reason is to provide liquidity efficiency and integrity of the marketplace okay when you have done that and you've stabilized things you have to let the marketplace take over what happens is these central banks and the and the fed and everybody else they fall in love with their own policies and they decide that you know what since my time here is limited anyway i'm going to go out with the bang and you're going to have the greatest economy ever and so they keep their foot on the accelerator longer than they should because everything they hear is how great they are and this happens and it's almost impossible to reverse until the marketplace takes over and does it for you that's why people that say this can never go down or this can't like you know the chinese real estate market's never going to implode you know they don't really understand that that that's not the intent here and that's why they almost have to let you know this one company blow up and others like it blow up and take down the housing market a little bit that's why they just that's why they i believe they purposely just they almost pulled the rug out from under chinese tech companies they were building up too much value because they just had to set the record straight in the u.s we don't exactly think like that but that's how they thought in china in the 80s that's i mean in japan in the 80s that's how they thought in china in the 2010s and in the u.s we've let the stock market almost it's gotten to the point where we got backed into a corner in what sense in the sense you're saying that you that you can't yeah yeah that they can't they can't take the foot off their accelerator they can't stop you there's too much money piled in at this point you mean there's too much pain on the other side if they like if there's it's the situation where you're almost like hey if i kick the can down the road for another year until 2022 okay then it's the next fed governor's problem i know that sounds nuts but that's kind of what it is like basically no one wants to do a greenspan irrational exuberance on facebook tesla etc etc is what you're saying if you're a baseball manager and your contract runs up at the end of this year all you care about is winning the world series this year you really don't care what's left in the tank next year because that's the new manager that's the new general manager's problem it's the same thing with in it's the same thing in politics it's the same thing with central bankers it's somebody else's problem down the road but right now all i want is i just want to read how great i am and and i think that you know that's a that that works until it blows up and so it always blows up right so but is there a trade to be had around this narrative or the only trade to be had here along china long along deltas and short puts in china as far as you're concerned another or did the little kicking around that happened on monday did that ad pump any volatility back in to sell some premium in uh in the u.s stock market which was absolutely absolutely we sold a lot of premium today in the u.s stock market because it was there it was ripe for the taking on the higher volatility ball's getting killed today it's down almost to seven percent or so but um it was it had popped up dramatically over the last couple of days so that was great um but yeah there's a that's why i started the conversation today talking about the uh the divergence between u.s implied volatility even after it's rallied huge last couple days it's chinese volatility still 35 for 37 over us volatility that's way too high that that spread between those two is like at record levels and so that to me is an opportunity to sell chinese volatility it also means that there's way too much fear in that marketplace so i kind of like that marketplace that's all i was saying you know so if you're asking if you're asking for opportunity yeah i mean there's opportunity all right so we got an injury i've never done this before but i i took a a picture of this tweet there was a tweet that came in and it was a question from a tasty trade uh person it would seem and i do you mind if i read this to you you're going to i've got i've got it on my phone right here if you can see okay go ahead the uh author of this comment what's the person's name it's at guild gilberto gilberto gilberto underscore capital tfc space lowercase y lowercase a okay so sounds quite authoritative and and uh complex please answer it says how can one rewire their own mind specifically the dopamine cycle to drift away from these delta plays short term action reaction mental mentality excuse me so it's a how do how can i rewire my own how can one rewire their own mind from a dopamine cycle away from these short term action reaction delta plays in favor of more long-term theta lovers is this an evolutionary feature that sets apart two different kinds of people those who are the dopamine delta directional maniacs like myself doing span margin on options on futures or you know there's even worse cases these five minute options i've heard about and then you have these more patient people who are the the your twitter friend calls theta lovers so uh can you train your mind to uh get off the delta junkie train and or are there or are there two different kinds of people um uh they're all everybody's the same person okay there's one person it's just a function there's only one person and um in the end we're all judged you know by by performance and so net results and everything else and so i i don't think there's you know i don't think there's two different schools i really just think there's you know it's it's a learning process i just got back from um from talking to people in in europe and they don't have access in the same way the u.s markets that we do so they don't have access to strategic investments so the reality of their their world is pure directional there is nothing else okay there is no strategy it is no there's no time decay on a put spread 45 days out no the advantage that europeans have if you want to call it an advantage that people all around the rest of the world have is that they have um access to um to potentially more global products with higher leverage so wherever you are in the world the the if you have an advantage at all over us investors is that you have the ability to access more products with higher leverage that's your advantage so instead of having to use an option to play something directionally which has time decay you can get 20 to one on stock okay without having to set a time limit you're saying that's right so so the advantage is is leverage and and it's also they also have the advantage in certain places of much more efficient tax rates on leveraged trades some places not so much but that's the advantage in the us the advantage we have is we can be strategic and personally i think the idea that we can be strategic is far more um is uh is is far more opportunistic because because to me um strategy is strategy is more mathematical than pure direction that's all you know and and so but do you think mindsets in other words if the tastytrade premise is that you're better to have the discipline to sell you know high implied volatility relative to itself 45 days out but the dopamine cycle rewards a shorter term directional long call long put or even short call short put but you know unhedged is there is did you have to is there you know is there a way is there a way to train the mind away from that seduction or is it is you know it's uh it's certain i don't i think i think i think it's a little i think it's unfair because for a lot of people you you so let me give an example this morning we know the fed's coming out at midday today and we know the feds at one o'clock today is going to make an announcement with respect to interest rates let's just call it interest rates so in most places you have to make a directional bet if you want to play it if you want to play that you have to make a directional better bond's going to go higher or lower so when i got into work this morning and opened up my screen bonds were unchanged notes were unchanged so you know the fed's coming out today but the question is what do you do right fed's coming out at one o'clock today fat something's gonna happen biggest day of the month for the for the bond market gotta be expected move one day expected move hold on forward slash zb one day expected move um about let's just call it 30 30 ticks in the bonds i i don't know exactly what it is i'm just um 0.7 about let's just call it 30 i'm gonna actually let me give you exact number because i feel bad i'm not giving an exact number one day expected move let's call it 36 ticks not not that relevant but let's just call it 36 ticks um i wouldn't know what to do like it's a complete toss-up like i have no idea i figure the fed's gonna say anything whatever they say they're they're gonna try not to move the stock market they're gonna it's gonna be pretty tame um i the market was strong pre-mark you know pre-market strong we've been down two days in a row we closed underwater yesterday the fed's not going to say anything to to disrupt anything bonds are unchanged notes are unchanged prior to the market maybe they go up a few ticks on that news maybe they go down a few ticks i have no idea how to play it okay that's it anywhere in the world you are that's the best you can do so i come in this morning and look at that and say i have no idea either but because i'm strategic i'm just going to sell a couple of strangles with two days to go and 20 with two days to go and with 30 days to go in in the 10-year notes okay just because i'm strategic i don't really care what happens just as long as they kill premium as long as they take volatility from 10 to 9 or 9 to 8 or 10 to 8 whatever it is it's cool to have that choice most people don't have that choice is it only in the united states that that choice exists in the bonds no but in a lot of equities yes but even for people around the world to trade u.s bonds have you count in u.s dollars at a u.s brokerage firm it's quite complex so yeah the answer is it is it is kind of now in the era of tokenization and digitization pretty soon you're going to be able to trade tokens so if you're in moscow and you want to trade short bonds you'll be able to sell them and if you want to and if you want to do something to the long side if you're in turkey you can buy or sell them too but that option marketplace for that to sell premium doesn't even exist so that's nowhere close to being in place for somebody like a dylan ratigan to use that approach so i would argue that no the world does not have that opportunity right now but i sold some some strangles in in the 10-year note this morning okay just a few just messing around okay they've come in the news is out and these are ultimately options on bond futures is that how you yeah yeah ten year notes um just looking right now to take a look just looking to see what has happened here and yeah i mean like i said i had no idea what's gonna happen i sold a bunch of different strikes every single strike is up money it's not a lot small few hundred bucks per you know per each one my point is that's an option that the guy that i'm i'm answering that guy's text his name is gilberto capital fc lowercase y.a i'm answering the question by saying i could have come in this morning if i had a strong opinion i could have bought bonds or sold bonds but instead i just sold some at the money premium with no delta not having the ability to do that is very restrictive and very limiting having the ability to do that is you know it it it it's more engaging for me it's more exciting as a trader so i don't know if the right answer is sometimes you just gotta take your shot and bet that they'll go higher bet that they'll go lower but for me being on the theta side having that theta component into a big number like that is way more interesting that's all i'll leave what you're saying is there's no such there is that it's that it's a that that our friend jill berto tfc lower case y a that he misunderstands the the the construction of the question in and of itself is misguided because the question is not should i be looking to sell theta or should i be looking to choose delta the question is how do i exercise my judgment based on any given situation to determine what the correct strategic investment is whether it's short theta or long delta or whatever it may be it's situational awareness and sophistication to determine in that situation which of these tools to use i'll take it one step further the future of finance for dylan ratigan for tom sosnoff for my kids whatever it is the future of self-directed finance because i don't care about directed finance the future of self-directed finance is the winner is going to be the firm that can figure out how to provide the most opportunity to the most people by supporting the most products and the most strategies because the idea that anybody else is is there going to be a technological advantage can can you route an order in 25 milliseconds and the next firm can do it in 23 and some other firm is 42 does that really matter it's all less than the blink of an eye the answer is no are the commissions relevant anymore and the answer is no they're all about the same like it the content is still differentiating the discussion that we're having you will not hear this discussion on cnbc or bloomberg or anything else because nobody gets into these for that matter yeah but the but the firm and and the the company that takes over the future of finance is going to be the one that figures out how to say to dylan radigan hey whatever you want to do dylan on whatever market you want to play using whatever strategy you want we're here for you screw everything else right that that ultimately the winner is the one with the most strategies in the most situations in the most markets that's right want to trade fred you want to trade china you want to trade england you want to trade this you want to be short bond i want to do this you want to sell bitcoin you want to buy bitcoin you want to do options on cardano you want to do this or that you want to you want to trade an nft i don't care what it is whoever provides the the opportunity for people what i love about the technology that we build is that is our focus it's hard to get to the point where you can offer everything to everybody but that is our focus offer everything to everybody facilitate opportunity and and let that person like that guy that writes in that that that tweet the person that puts post that tweet it's just like hey you know what whatever you want to do that's what we'll let you do simple doesn't care one account boom do whatever you want so you can look at a situation where the bonds like this morning and you can say hey you know what i want to sell strangle or you can look at a situation like china and the us and you can say i want to sell chinese volatility and and i'm going to sell it against u.s volatility some combination thereof that's that is the future of what self-directed finance is going to look like and so what is it that gets because i i still think that the her i agree with you that that platform environment for sure has a massive competitive advantage however i still feel like there's a huge gap between the number of people that might have a desire to use such an environment as this multi-strategy multi you know everything everything environment and people who have the this financial education to have the confidence to to take control of that as opposed to a passive long position or just a nakedly long call or nakedly long so more more sort of rudimentary if you will strategies that are entirely directional with or without leverage which i think is where most people are uh there is absolutely no question that is where most people are um but it is you know again we'll get back to the discussion of china japan and the us and talking about propping up the housing markets and and propping up the stock markets the the the point of of adding liquidity to the system is to add efficiency and if the if the side effect is that you end up getting pushing that marketplace into a bubble that's really bad if the side effect of liquidity and efficiency is that you create opportunity for investors which has been a reasonable side effect as well like we talked about the negative which is a housing which is a housing bubble in china or a stock bubble in the tech stocks in the u.s or you know something else we talked about that the positive side of all this is that marketplace liquidity forced by the central banks and stuff has led to the development of digital assets it's part of the it's it's one of the positive side effects of what's happened with marketplace efficiency because it's created a it's created a movement towards technology in fintech technology that has created asset classes so there's lots of positive side effects as well like don't think the crypto movement like in the crypto movement was born out of liquidity and marketplace efficiency so they were able to create software to build an asset class without actually knowing they were doing it at first but it all came together perfectly because they were because they were able to because the marketplace was able to absorb that it's really fascinating no i didn't i agree it i mean there's no it's one of those things where for sure there are a thousand beautiful benefits when you have this sort of hyper liquid environment technical and you know wealth creation etc etc but then you also get at the end a huge wave of wealth destruction and the sort of like you know if the apollo mission gave you tang or whatever right like the question is whether the consequent the losses from these big financial boondoggles ultimately are beneficial yeah you're a believer of an efficient you're like i believe in efficient markets and the market knows more than we know and all these things i don't but at the same time when the market gets distorted over time do these market distortions ultimately create more problems than they than they solve i mean look at the pandemic for a second let's see let's look at what the pandemic has done on the one hand it has um it's created uh wealth inequality to a level that we've never seen before right you know i mean which is which is scary on the other hand and i'm eliminating forgetting about the the bad part the deaths and that kind of thing just talking about kind of you know from from a financial side it's created wealth inequality the the flip side of it is it's also shown us that as a society um our economy can pivot on a dime we can pivot instantly we never knew we could do this big giant companies that you thought were immovable not only are they movable they're movable in a week we took the entire financial industry which wouldn't let you leave you you couldn't basically you know in our offices you couldn't even have a computer like it had to be we had to store our computers and everybody just had a virtual desktop we stored our computers off-site for security reasons we're one of the first firms to do that and then within one week everybody's working from home on a laptop the entire world of finance is working from home on a laptop so we go from a virtual hand print only security hand print i print whatever hand print i scans to working at home on a laptop in a week it's insane and yet it worked but at the same time it created this crazy wealth inequality that that we haven't been able to adjust for so there's a good and then there's a scary and how we navigate that path is you know that's you know i think that's that's what's facing china right it's not facing us yet so we haven't had to deal with anything this country we've got a free pass for some god knows reason you know i have no idea why we've got a complete free pass for the last decade china had a free pass for almost 20 years now they're paying the price and you think china's a buy as a result though you're i mean from a trading perspective i mean would you do you think this is a like it's been years since there's been an opportunity like this in china is it that big of a deal yeah yeah it could be i mean relative to the us yeah yeah so like if you were to buy us here and buy china here and then and then and the market crashed you'd lose money in china of course but it'll be less than you'll use losing the us i mean that's why i think but i listen it's not it's not that monstrous to play for me i just think it's the i just think it's the right play the other play that's really interesting here is you know is the bond play because um you know they're they're they're 164 right now the bonds and the fed has said today i mean you know that i wish they just wouldn't i wish they would just come right out and just lay it on the table and say it but you know they're like well maybe we'll raise rates next year or maybe we'll you know stop it maybe maybe maybe maybe but just say it pull the band-aid off you know you have to do it which is what they're going to raise rates they have to why because it's because you can't because it's all artificial the level we're at right now you i mean unless you plan to maintain this level of liquidity forever and and and watch that gdp number that you talked about that scared you even you know unless you think that's going to okay to go to 50 or 60 i mean at some point you got to pull the bandit off so you're short to bond your long china that's what we're talking about as usual not well sure the bond as usual long china is unusual yeah yeah but the boss or the but the bond doesn't forget about it yeah i mean that's the only way i see it as a macro play but the majority of my positions are what that guy wrote to you about short premium short premium were you happy to see where you were were you able to trade the last two days when the market went full squirrel or were you sitting there in a boardroom in london acting like mr chairman eating uh bon bons i was eating roast beef in case you want to know that's all they serve there's roast beef breakfast lunch and dinner i'm so sick i can't i never might never eat again but were you did you walk away and think to yourself the only two days i can't trade because i'm playing ceo market explodes with with you know infinite opportunity after being asleep for three months if not longer did you take it personally um i tried to stab myself a couple times rather than that and i was fine okay yeah as long as you've got a coping mechanism i think we'll be okay i i wanted to cut my own finger off a couple times but yes i was okay i think that's what pinkies are for ronnie lot proved that years ago when he chopped off his pinky so we could keep playing it's it's a thing you can do he's a real man i'm not i'll we'll leave it at that never compare me to for for the sake of all professional football players never compare my tolerance or pain to ronnie lotz he is a real man ronnie lott was the toughest guy i think i've ever seen i am not in that category i would have been crying i looked at my finger i looked down and half my finger was missing and i was in the middle of the game i'd be done okay i told that story to a friend of mine i said you know ronnie lott broke his pinky and they said you can either put your pinky in a cast so you but then you're out for six weeks or we can just chop half your finger off and you'll be back next weekend and he said we'll go ahead and chop it off and i was telling that story as obviously the testament to the most sort of manly thing that's ever been done in the sports world or certainly one of them and my the person i told the story to said yeah but the 49ers lost that game they did but he didn't break his finger half his finger was ripped off okay well whatever they still lost he's still a tough guy all true again he's still in rat again i'm tom sauce not this is truth or skepticals and we'll see you next uh we'll see you next wednesday at 1 p.m central time thanks for spending some time with us thanks dylan hi tom welcome home

Channel: tastytrade

Views: 8,478

Rating: 4.8400002 out of 5

Keywords: China, Technology, Chinese Stocks, Chinese Tech, Tech Sector, Technology Sector, Real estate, chinese real estate, evergrande, chinese stock market, chinese equities, equity index, US Stock Market, US equities, US Equity Market, FOMC, The Fed

Id: FFB8I9JTlG4

Length: 44min 47sec (2687 seconds)

Published: Wed Sep 22 2021