Monday, November 5, 2012

Why the US Stock Market is a ticking Time Bomb!!!

For those that follow the stock market a trader that worked for Rochdale Securities bought 750 million to 1 Billion Dollars in shares of Apple last month.  Keep in mind Rochdale only had 3.44 Million of capital at the end of 2011.  So one trader bought 750 million to 1 billion dollars of  Apple on margin leveraged over 200:1
    
Meanwhile Apple has dropped considerably the past month so now Rochdale is in big trouble because they have a large loss on the books and are asking for a bailout.  One has to wonder how many other trading firms out there are leveraged big time to the upside in the market.  This market is a ticking time bomb and when it explodes look out below.       

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