It’s actually getting a little amazing to watch what’s going on in the popular media. I got the latest issue of Time magazine in the mail, and check out the back cover………
Ummmmmmmm……..don’t miss the bounce? Like buying DTG at $20.60 per share?
Folks, even if there’s more upside from here, the "bounce" already happened! Gobbling up anything with a ticker symbol in mid-March has turned out to be brilliant for anyone who managed to do so (and who hung on until now). Stocks moving up multiple hundreds of percent – or even quadruple-digits of percent – are commonplace. I mean, hell, Ford – – makers of the Taurus! – – is up 800%!
But the notion that the common man can take advantage of some impending bounce is just pathetic. But, more important for us, as we look back on this a year from now, we’ll see how it was yet another case of (…..dramatic pause.…..) the curse of the cover. <—echo-y voice.
New York Times reporters Gretchen Morgenson and Don Van Natta have dumped a gigantic bucket of kerosene on the Goldman Sachs (GS) conspiracy fire with a new report detailing the extent to which then Treasury Secretary Hank Paulson was in touch with his old bank during the pit of the crisis.
Bottom line: he was in touch with Goldman a lot.
While Mr. Paulson spoke to many Wall Street executives during that period, he was in very frequent contact with Lloyd C. Blankfein, Goldman’s chief executive, according to a copy of Mr. Paulson’s calendars acquired by The New York Times through a Freedom of Information Act request.
During the week of the A.I.G. bailout alone, Mr. Paulson and Mr. Blankfein spoke two dozen times, the calendars show, far more frequently than Mr. Paulson did with other Wall Street executives.
On Sept. 17, the day Mr. Paulson secured his waivers, he and Mr. Blankfein spoke five times. Two of the calls occurred before Mr. Paulson’s waivers were granted.
By waviers, they’re referring to ethics waivers which had barred Paulson from having any significant relationship in dealing with Goldmn Sachs issues, as Secretary of the Treasury. Clearly, this was no time to be bound by old formalities and ethics limitations that they thought would never become an issue.
It also belies the claim — which Goldman still maintains to this day — that the firm was never in danger, even with the teetering AIG and the financial crisis as a whole. What these records suggest is that Paulson was, indeed, concerned about Goldman’s condition specifically — if he’d just been talking to Blankfein about general market conditions, the waivers wouldn’t have been required.
Still though, you have to give Goldman Sachs credit for message discipline:
A spokesman for Goldman, Lucas van Praag, said: “Lloyd Blankfein, like the C.E.O.’s of other major financial institutions, received calls from, and made calls to, Treasury to provide a market perspective on conditions and events as they were unfolding. Given what was happening in the world, it would have been shocking if such conversations hadn’t taken place.”
Let’s bring current the view of the market from the perspectives of Renko and 3-Line Break Point charts, using long-term Weekly charts, intermediate-term Daily charts and short-term Hourly trading charts
Renko – Weekly
Last signal a Buy on July 13 at 881.49
Point Break – Weekly
Last signal a Buy @ 761.75 on April 27th – Sell stop @ 899.52
Renko – Daily
Sell signal August 6th @ 1000.87
Point Break – Daily
Sell stop @ 986.56
Renko – Hourly
Last Sell August 7th @ 1014.05
Point Break – Hourly
Sell August 7th @ 1012.37
Are these signals tradable? Those are some very impressive trades across the board, from Weekly to Daily to Hourly. Labeling these trades in retrospect on a Sunday afternoon with a ballgame on in the background is one thing, trading the actual signals in real time with CNBC blasting and multiple models singing, well, that’s quite a different situation.
To be termed scientific, a method of inquiry must be based on gathering observable, empirical and measurable evidence subject to specific principles of reasoning. A scientific method consists of the collection of data through observation and experimentation, and the formulation and testing of hypotheses.
Well said. So my ongoing research is in part based in turning these two charting methodologies into a real time real money algorithm. Coming soon to a blog close to your hearts.
Oh yeah, something else from John Stuart Mill:
Mill’s On Liberty addresses the nature and limits of the power that can be legitimately exercised by society over the individual. One argument that Mill develops further than any previous philosopher is the harm principle. The harm principle holds that each individual has the right to act as he wants, so long as these actions do not harm others.
With the ban of Flash orders in equity markets now practically a done deal, politicians, and hopefully regulators, will start focusing their attention on Flash derivative products which facilitate not only a two tiered market but potential market abuse by the privileged few who have access to advance looks in assorted securities classes.
While dark pools will ultimately be the critical focal point of tiered market differentiation, it seems the next immediate area of focus will be flash orders in option trades. As before, a major opponent of Flash, NYSE Euronext, provides a few on why flashed options afford club” members the opportunity to sniff out larger market moves. From Traders Magazine:
[Ed Boyle, who runs NYSE Euronext's U.S. option business] argues notes that flashed orders can enable participants receiving the flashes to trade ahead of customers whose orders are flashed, either in the stock market or in options. “When an order is flashed, there’s often not a lot of contracts available at the best price,” he said. “It’s when the market is moving fast that a customer is likely to be disadvantaged [by flash orders].” He added that flash orders proliferated in 2007 when the penny pilot began. Arca has price-time priority and maker-taker pricing for penny-quoted options.
The International Securities Exchange and the Chicago Board Options Exchange argue that flash orders benefit customers. “Customers like this functionality,” said Boris Ilyevsky, managing director of the ISE Options Exchange. “They see a direct economic benefit.”
He notes that flash order types in options are technically similar to those in equities, although the benefits are different. “Our market makers and members can match the away price through a flash auction,” Ilyevsky said. “That gives the customer the away price without paying a take fee that could, on some markets, be 45 cents per contract. The customer fee on the ISE is zero.” If there’s no response, the ISE’s primary market maker in that symbol seeks the best price through a linkage order.
Other defenders appear in the form of the CBOE, whose flash order type…
That’s what I do for a living, check out a recent guest blog post at INO.com.
"We ALL get the emails, “UOMO is going up big, buy today” , “If you’re looking for 3000% gains go long XYZ”…the dreded penny stock pump and dump! The pump and dump often plagues new traders looking for huge returns and veterans trying to play them along with the “pumper”. But it’s often very risky and millions are lost everytime the “pump” is on. But there’s one person I personally know (I was able to have a nice sushi lunch in NY with him) who trades the “pump and dump’s” and makes a KILLING doing it! You’ve all heard about him and his name is Tim Sykes. Love him or hate him, he’s one of, if not the best person out there for penny stock info and trading." Brad of INO, MarketClub.
Timothy: People often ask me what I do for a living and I love to see the look on their face when I say, “I short sell and write about hyped up and manipulated Penny Stocks”
When I first started blogging in 2007, Investopedia said it was not possible to short sell Penny Stocks. They have since changed their minds now that my big mouth has been shouting at the top of my lungs, you can short stocks under $5, it’s not as risky as you might assume, but only if you know what you’re doing.
The key to my survival and success in a decade-long career in this greatly misunderstood niche has been to be wary of everyone and every company. Most people buy Penny Stocks thinking that they have a shot at turning a few hundred or thousand dollars into millions. Certain financial websites that title articles “The Next Million Dollar Penny Stock” look to take advantage of that.
I take it one step further, looking to take advantage of those gullible suckers as they fail to realize the odds of a $1 stock becoming a $100 stock, let alone a $5 or $10 stock, are horrific. Mainly due to the fact that ALL stocks trading under $5 are flawed in some way (that’s why their stock…
U.S. Treasury Secretary Timothy Geithner formally requested that Congress raise the $12.1 trillion statutory debt limit on Friday, saying that it could be breached as early as mid-October.
"It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations," Geithner said in a letter to Senate Majority Leader Harry Reid that was obtained by Reuters.
A Treasury spokeswoman declined to comment on the letter.
Treasury officials earlier this week said that the debt limit, last raised in February when the $787 billion economic stimulus legislation was passed, would be hit sometime in the October-December quarter. Geithner’s letter said the breach could be two weeks into that period, just as the 2010 fiscal year is getting underway.
The latest request comes as the Treasury is ramping up borrowing to unprecedented levels to fund stimulus and financial bailout programs and cope with a deep recession that has devastated tax revenues.
It is expected to issue net new debt of as much as $2 trillion in the 2009 fiscal year ended September 30 and up to $1.6 trillion in the 2010 fiscal year, according to bond dealer forecasts.
The request to increase the debt limit will likely raise the ire of Republicans who have accused President Barack Obama of runaway spending. They may try to hold up the legislation in effort to win concessions on Obama’s health care reform plan.
Geithner urged Reid to not let politics hamper U.S. credit-worthiness and said he looked forward to working with the Nevada Democrat to secure enactment of legislation on the debt limit as early as possible.
"Congress has never failed to raise the debt limit when necessary. Because members of both parties have long recognized the need to keep politics away from
Some are greeting Friday’s employment report as an all-clear signal. But my advice is, keep your helmet on-- they’re still shooting real bullets out there.
Let’s start with the good news. I first called attention to the favorable turn in new claims for unemployment insurance on April 9, noting that in each of the previous 6 recessions, an economic recovery began within 8 weeks of the peak in new claims. On May 7, I concluded we had enough statistical evidence to predict with 85% confidence that new claims for unemployment insurance had indeed peaked at the beginning of April. Although there was some concern as to whether seasonal adjustment could be confounding the July readings, it’s pretty clear now that the substantial decline in new claims is the real deal.
Black line: 4-week average of seasonally adjusted weekly initial claims for unemployment insurance, from Department of Labor via Webstract. Vertical lines mark the first month of an economic expansion as ultimately determined by the National Bureau of Economic Research.
And many cheered Friday’s BLS release showing that nonfarm payroll employment fell by 247,000 workers in July, the smallest drop since August, 2008. But the problem is, if a traditional economic recovery had actually begun in June (8 weeks after the April peak in claims), the number of people with jobs should have increased in July rather than fallen by another quarter million.
Change in employment
Oct 70 to Jan 71
Feb 75 to May 75
Jun 80 to Sep 80
Oct 82 to Jan 83
Apr 91 to Jul 91
Nov 01 to Feb 02
Apr 09 to Jul 09
To put this in perspective, I took a look at where nonfarm payroll employment stood relative to where it had been at the time of the peak in unemployment claims for the current and each of the previous 6 episodes. I calculated
Here’s an excellent documentary video called "The Great American Bankruptcy." H/t Tyler Durden at Zero Hedge, who h/tipped Ian. William K. Black, a white collar criminologist, discusses the financial crisis and our pseudo-capitalistic fraud-ridden system. - Ilene
William Kurt Black is an American lawyer, academic, author, and a former bank regulator. Black’s expertise is in white-collar crime, public finance, regulation, and other topics in law and economics. He developed the concept of "control fraud", in which a business or national executive uses the entity he or she controls as a "weapon" to commit fraud.
On April 3, 2009 Black appeared on "Bill Moyers Journal" on PBS and provided critical commentary on the U.S. banking crisis. In the interview with Bill Moyers, Black asserted that the banking crisis in the United States that started in late 2008 is essentially a big Ponzi scheme; that the "liar loans" and other financial tricks were essentially illegal frauds; and that the triple-A ratings given to these loans was part of a criminal cover-up.
Discover consumer spending monitor drops for second month, “Anticipated Spending Falls for First Time Since February; Majority of Consumers Planning Cutbacks on All Discretionary Purchases” (Discover Financial, h/t Philip)
As we are in a similar situation this weekend, when stocks may have run up a bit too far to buy – it’s a good time to look at other long plays we can make "just in case" the rally continues. Our Long Shots are meant to pay off big when the market rises big while not risking too much capital but they are RISKY plays as they are not very adjustable if there is a pullback. Nonetheless, our last group has performed spectacularly so let’s review those and then make some new plays as the market swings for the fences.
C – Buying 2011 $2.50 calls for $1.14 (now $1.98) and selling the 2011 $5 calls for .56 (now $1.03). That’s a net gain of .37 on the .58 spread or 63%, which is pretty darned good for 6 weeks but our goal on this trade is a 346% profit and we’re not going to get there without some very greedy holding through some very big returns. One trick with these sort of plays is to buy a bit more than you plan to hold long-term, like 20 @ .58 ($1,160) rather than 10 ($580) since the downside curve is not very steep (unless C suddenly went BK, which was doubtful). Then you could snatch 10 off the table at .95 ($950) and you could let the remaining $210 ride and it would still pay your target $2,500 if it hits goal at expiration.
Always remember with these plays they are like betting on long shots at horse races EXCEPT, you get to change your mind and withdraw most of your bet after the race starts and you get a look at your horse’s performance. That’s a very good deal but you MUST use that power and take the bad bets off the table otherwise you blow your entire advantage!
UYG was another one that just seemed too darned cheap at $3.87 (now $5.55) and we went for the 2011 $4s at $1.38 (now 2.30), selling the $5s for $1.12 (now $1.90) so we’ve gone from net .24 to net .40, up 66% but, like C, we’re not going to get to our 300% goal without holding on through some ridiculous profits are we? Of course with this play, as well as C and others like them – just because we…
What else should you do as Russian and Ukraine forces begin a serious un-de-escalation... sell precious metals with both hands and feet of course. The strength in stocks (whether channel-stuffed or not) is enough to make investors believe that we don't need no stinking Fed and that economy must be doing great all on its own. Gold is back below $1275, which SocGen warns could lead to $1233.
A close below 1275 will mean the extension of the correction to 1263/60 and possibly even 1233.
Zogenix, Inc. (Nasdaq: ZGNX), a pharmaceutical company developing and commercializing products for the treatment of pain-related and central nervous system (CNS) disorders, announced today that it has entered a definitive agreement to sell its SUMAVEL® DoseP...
This doesn't happen very often. Marketwatch reports that Jim Bianco points out in a recent market comment that the 67 economists taking part in a regular Bloomberg survey have a unanimous forecast regarding treasury bond yields: they will be higher 6 months from now. This is a truly striking result, and given the well-known propensity of mainstream economists to guess wrong (their forecasts largely consist of extrapolating the most recent short term trend), it may provide us with a few insights.
In fact, considering that there have been only a handful of instances since 2009 when a majority of the economists surveyed predicted a decline in yields, we can already state that their forecasts regarding tre...
Indexes took a little rest today, which as we said yesterday was probably needed. There was actually some bad economic news in housing and the market didn't react much at all which is something bulls will like. After the close was a surprise stock split by Apple (AAPL) which will help the indexes tomorrow as the stock is up strongly in after hours. The S&p 500 fell 0.22% and the NASDAQ 0.83%. The Commerce Department reported new home sales fell 14.5 percent in March, the worst sales month since July. Again it is not the news that matters to markets, but the reaction to the news and the market didn't really care.
Here are longer term charts of the two indexes. The S&P 500 hit the top trendline which connected the lows of summer 2012 yesterday and fell back after a furious week long rally.
Bunge Limited (BG) is the world’s largest processor of soybeans. It is also a major producer of vegetable oils, fertilizer, sugar and bioenergy.
When commodities got hot in 2007-08, Bunge’s EPS shot up and the stock followed, rising 185% in 19 months.
The Great Recession took its toll on operations, dropping EPS to a low of $2.22 in 2009. Since then profits have recovered. They ranged from $4.62 - $5.90 in the latest three years. 2014 appears poised for a large increase. Consensus views from multiple sources see BG earning $7.04 - $7.10 this year and then $7.83 - $7.94 in 2015.
Shares in Las Vegas Sands Corp. (Ticker: LVS) are up sharply today, gaining as much as 5.7% to touch $80.12 and the highest level since April 4th, mirroring gains in shares of resort casino operator Wynn Resorts Ltd. (Ticker: WYNN). The move in Wynn shares appears, at least in part, to follow a big increase in target price from analysts at CLSA who upped their target on the ‘buy’ rated stock to $350 from $250 a share. CLSA also has a ‘buy’ rating on Las Vegas Sands with a $100 price target according to a note from reporter, Janet Freund, on Bloomberg. Both companies are scheduled to report first-quarter earnings after the closing bell on Thursday.
Yesterday, the market continued its winning ways for the fifth consecutive day. The S&P 500 closed within 1% of its all-time high, and the DJI was even closer to its all-time high. Healthcare, Energy and Technology led the sectors while Financials, Telecom, and Utilities finished slightly in the red. All three sectors in the red are typically flight-to-safety stocks, so despite lower than average volume, the market appears poised to make new highs.
Mid-cap Growth led the style/caps last week, up 2.87%, and Small-cap Growth trailed, up 2.22%. This week will bring well over 100 S&P 500 stocks reporting their March quarter earn...
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This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).
We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options.
Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.
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[Facebook] The social network is only weeks away from obtaining regulatory approval in Ireland for a service that would allow its users to store money on Facebook and use it to pay and exchange money with others, according to several people involved in the process.
The authorisation from Ireland’s central bank to become an “e-money” institution would allow ...
I just wanted to be sure you saw this. There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.
If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.
Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.
Reminder: Pharmboy is available to chat with Members, comments are found below each post.
Ladies and Gentlemen, hobos and tramps,
Cross-eyed mosquitoes, and Bow-legged ants,
I come before you, To stand behind you,
To tell you something, I know nothing about.
And so the circus begins in Union Square, San Francisco for this weeks JP Morgan Healthcare Conference. Will the momentum from 2013, which carried the S&P Spider Biotech ETF to all time highs, carry on in 2014? The Biotech ETF beat the S&P by better than 3 points.
As I noted in my previous post, Biotechs Galore - IPOs and More, biotechs were rushing to IPOs so that venture capitalists could unwind their holdings (funds are usually 5-7 years), as well as take advantage of the opportune moment...
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This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.