Archive for 2011

“Technical Glitch” Takes Down Australian Stock Exchange

Courtesy of Tyler Durden

After last week we saw the Euronext, the Italian and the London Stock Exchanges crashing and burning, it is now Australia’s turn. According to the ASX, the exchange is “currently experiencing technical difficulties regarding trade dissemination on Partition 3 Securities” which in non-binary means the prices on the ASX are not updating. Must be all that pent-up buying pressure over the continuing Libyan revolution… Of course, those who only trade the futures, such as the big banks and the quant desks are immune as futures are still trading without a glitch. How long before the threat of a racist, unpatriotic down print takes down the Nikkei, the Shanghai Composite, and finally the Deutsche NYSE? Luckily, the Nasdaq where only C-grade vacuum tubes trade any longer, will be spared.

 





Moving Averages: Month-End Preview

Courtesy of Doug Short

Here is a preview of the monthly moving averages before the market opens on the last business day of the month. All three S&P 500 monthly moving averages are giving the “invested” signal.

Note: The index updates are intended to illustrate the moving moving-average timing strategy. They also give a general sense of how US equities are behaving. However, followers of a moving average strategy should make buy/sell decisions on the signals for each specific investment, not a broad index. Even if you’re investing in a fund that tracks the S&P 500 (e.g., Vanguard’s VFINX or the SPY ETF) the moving average signals for the funds will occasionally differ from the underlying index because of dividend reinvestment.

The Ivy Portfolio

The top table previews the 10-month SMA timing signals for the five asset classes highlighted in The Ivy Portfolio. It should come as no surprise to anyone following my recent focus on Treasury yields that IEF, the Treasury ETF, is only one teetering on the buy/sell threshold.

I’m also included the 12-month SMA timing signals for the Ivy ETFs in response to the many requests I’ve received to include this slightly longer timeframe.


After the end-of-month market close, I’ll update the monthly moving average feature with charts to illustrate.

The bottom line, as we’ve pointed out earlier, is that these moving-average signals have a good track record for long-term gains while avoiding major losses. They’re not fool-proof, but they essentially dodged the 2007-2009 bear and thus far have captured significant gains since the initial buy signals after the March 2009 low.

Note: See the Timing Updates for interim updates throughout the month.





As Bloomberg Reporter Is Beaten Up In China, Wen Jiabao Promises To Crack Down On “Power Abuse”

Courtesy of Tyler Durden

With violent protests springing up like mushrooms, following recent appearances in North Korea and Vietnam, and following last weekend’s failed attempt at a Jasmine Revolution, China’s authoritarian regime is about to be put to the supreme test. Bloomberg reports that “Chinese Premier Wen Jiabao pledged to punish abuse of power by officials and narrow the growing wealth gap as police blanketed Beijing and Shanghai to head off planned protests inspired by revolts in the Middle East.” In other words, beatings (and disappearances) will continue until morale finally improves. As for the beatings, Bloomberg’s Stephen Engle managed to experience one up close and personal: “Security officers also detained several foreign journalists, including Stephen Engle, a reporter for Bloomberg Television. The Wall Street Journal saw Mr. Engle being grabbed by several security officers, pushed to the ground, dragged along by his leg, punched in the head and beaten with a broom handle by a man dressed as street sweeper.” Yes, China may be the most repressive regime when push comes to shove, but should 1+ billion angry and hungry Chinese decide there is nothing all that unique about China compared to Tunisia, Algeria, Egypt, Libya, Bahrain, Oman, Saudi Arabia, Ivory Coast, Vietnam, North Korea, Djibouti and countless more to come, not even the most convincing “blanketing” by police forces will do much of anything to prevent the only revolution that matters.

Bloomberg on China’s latest desperate attempt to deflect public anger:

The root of corruption lies in a government that has too much unrestrained power, Wen said in a two-hour online interview with citizens yesterday. He promised to curtail food costs and tackle surging property prices. Wen also cut economic growth targets and said the government would focus on ensuring the benefits of expansion were more evenly distributed.

Wen’s comments came as hundreds of police deployed in Beijing and Shanghai at the site of demonstrations called to protest corruption and misrule. At least seven people were bundled into police vans near Shanghai’s People’s Square, while in Beijing several foreign journalists were forcibly removed from the Wangfujing shopping district.

China’s leaders have emphasized the country’s economic successes in their response to demonstrations both in China and in the Middle East. While the country’s economy has expanded more than


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A Game 23% of America Does Not Need to Play

I survived the month, with around $500 dollars left over. Not enough food and two court appearances later, life’s probably good for another month, as long as I don’t have anymore health issues and speeding tickets. Oh, and by the way, can I borrow your washer and dryer? – Ilene 

A Game 23% of America Does Not Need to Play

Courtesy of Jr. Deputy Accountant 

North Carolina’s Urban Ministries of Durham has partnered with ad agency McKinney to create what I believe is a completely new kind of game – the "I’m a broke American and can hardly survive" challenge, SPENT, dares you to survive a month through car problems, bills, toothaches and near starvation (by our standards). 

Said UMD about the release
:

This latest adventure, Spent, is beyond what UMD could ever imagine. Spent is not just a social networking campaign, but an immersive online experience created and donated by McKinney. Raising awareness of the complex issues involved with poverty and homelessness and galvanizing the support needed to address those issues, are important components of our work. Our ongoing partnership with McKinney and their creation of this game are very important to us because they provide creative opportunities to engage new audiences and to enlist new support for the work we do each day.

They’ve also taken to foursquare, creating locations around Durham such as "dumpster in the alley" and "under the overpass" to bring awareness to homelessness. Interesting tactic.

So? Do you have what it takes to survive on nothing? Play SPENT here.  





Russ Certo Shares A Market Update At A Time When Fundamentals No Longer Matter

Courtesy of Tyler Durden

From Russ Certo of Gleacher & Company

Let it ever be said that America had no sooner become independent than she became insolvent of that her infant glories and growing fame were obscured and tarnished by broken contracts and violated faith, in the very hour when all the nations of the earth were admiring and almost adoring the splendor of her rising.

John Jay

A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from  the mouth of labor the bread it has earned- this is the sum of good government.

Thomas Jefferson

Rather go to bed supperless than rise in debt.

Benjamin Franklin

Uprisings in Africa and the Middle East last week trumpeted any and all global investment themes.  The hearts and minds of peoples against regimes played out on a global scale.  Crude ended the week up 9.1%.  CBOE Volatility Index, VIX, rose 15%.  Global equity bourses retreated a few percent with the U.S. outperforming by a marginal percent on QUALITY flight.

The Swiss Franc traded like GOLD as both assets also benefitted from safe haven flows.  The 30 year long bond was another beneficiary and its performance dramatically flattened the yield curve as investors translated the prospect of higher energy prices as an economic TAX and not a harbinger of inflation expectations.

In some ways there is a marriage of both global and domestic themes alike as the peoples yearn for representation and the embodiment of what government REPRESENTS for people.  Or doesn’t represent.  Played out on a minor scale, one eye this week was on Wisconsin, Indiana, Ohio, New Jersey and the battles of the hearts and minds of public and private employees alike or better quantified as the high profile and human debate of the efficient allocation of private tax dollars and the consequent rate of return of public service.  To oversimplify, it seems like the relevant and searching question everywhere in nation(s) is, how effective does government allocate public and private resources and consequently represent its peoples?

This is the looming topic in the United States this week as both sides of the Congressional isle try to avert a government shutdown as lawmakers have funded our domestic “obligations?” only through this Friday.  I guess obligation is a relative term.  Federal…
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Guest Post: Federal Reserve Carbon Footprint And The End Of Cheap Coal

Courtesy of Tyler Durden

Submitted by Joaquin Ferrer Benat of Qmunty

Federal Reserve Carbon Footprint And The End Of Cheap Coal

When analyzing the Federal Reserve monetary expansions, pundits only assess economic issues like inflation, balance sheets, bubbles or public debt. Significant as they are, it will be very useful that all this smart people were added to the camp of those who want to “save the planet”. Let me to try pin down it.

On January 27 OTC Derivatives Supervisors Group (ODSG) and major market participants met at the Federal Reserve Bank of New York to discuss how to improve infrastructures and reduce risks in derivatives markets, supporting G20 objectives. They agreed to set out those plans in a letter to the ODSG by March 31.

We will continue to focus on increasing standarization and transparency, as well as the further development and innovation of central clearing facilities to reduce counterparty credit risk. We must continue to advocate for solutions that will extend central clearing benefits to a broader set of participants in a safe and sound manner.

These are the words of Mr. William Dudley of the New York Fed. But before the letter reaches its destination, the President sould take a look at this charts.

Direct relationship between OTC market growth, foreign purchases of US debt and China’s coal consumption is obvious. And of course also between the disorderly monetary expansion cheered by the Fed, american deficits, global imbalances and Asian country CO2 emissions. This chart is enough.

We are in luck, because ODSG wants to support “G20 objectives” and we can read the notes of an attendee of the 2010 G20 meeting. According to the documents, the delegates concluded that a process of fiscal consolidation would be the key solution to the crisis, involving country-specific ideas with central coordination. Although the delegates evidently discussed the need to address the sovereign debt crisis “through cutting expenses and not through increased taxes”, that statement is immediately followed in this attendee’s notes by the idea of introducing carbon taxes.

I have never bought “save the planet” lema, because to save something we need first to find the culprit and the fault. And in…
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The Dark Side of Freedom

By Dinosaur Trader, courtesy of The Reformed Broker 

"Dinosaur Trader is a stock trader. He writes about the daytrading lifestyle, parenthood, marriagehood and the often combustible mixture of the three. He created the stock blogosphere in 2007."

Zeke’s face was bright red. He seemed to be holding his breath.

Beads of sweat covered his brow and collected on his eyebrows. His keyboard looked moist. In fact, it seemed humid and wet all around him, as if he had created his own weather system. Dark clouds hovered. A large purple vein, not a normal feature of his appearance, was prominent on his neck and looked like a well-fed earthworm. His hair was pulled back, very tightly, into a ponytail.

From his lips sprang the same word, over and over again. "F*** F*** F*** F*** F*** F*** …” Moments later it morphed into, "They’re f***ing me." He was staring straight at his screen with his hand glued to his mouse. He was motionless. It was like he was bracing himself.

They sat me next to Zeke so I could learn from him. Zeke didn’t talk much, but I did learn from him. I casually looked over at his monitor. He was holding a couple thousand shares of VOD which in 1999 (before it split 5 for 1) was very volatile and trading over 200 dollars a share. He was down over 6 thousand dollars in the stock.

His phone rang.

He tried to sound calm as he spat into the receiver "It’s just this guy, he’s f***ing f***ing me." He hung up and doubled his position. In a few minutes he was down over 10 grand in the stock and the risk manager of the firm, a large man who looked more like a bouncer than a man who was crunching numbers in a back office, paid him a personal visit.

Zeke knew his time was up.

A short conversation between Zeke and the risk manager, a man who everyone simply called "Mr. Bill", ensued and then Mr. Bill watched as Zeke closed out his position. Moments later Zeke put his very expensive headphones over his ears, gathered up his very expensive coat and his desk belongings and silently left the room.

It was the first blow-up I had witnessed at close…
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JPMorgan Seeks To Buy 10% Stake In Twitter For $450 Million, As Dimon Tries To Copycat Goldman In Opening Tech Bubble Shadow Market To High Net Worth Clients

Courtesy of Tyler Durden

The FT reports some disturbing news for lovers of free information everywhere: JP Morgan’s Digital Growth Fund is rumored to be in talks to acquire 10% of Twitter for $450 million, or a $4.5 billion valuation (for a service which we have yet to get confirmation is generating any more than token revenue whatsoever). “It is not clear if the JPMorgan fund will make a direct investment or buy out existing investors and shareholders with Twitter’s approval. But the fund does not intend to buy shares on the secondary market, the people said. The deal has not closed.” For those unfamiliar with the DGF, it is merely JPM’s way to copycat Goldman into “allowing” its high net worth clients to put their money into the latest tech bubble frenzy. “JPMorgan’s Digital Growth Fund was established this month to give rich clients exposure to fast-growing private tech companies, and follows a similar effort by Goldman Sachs to invest in Facebook. The fund has raised $1.22bn to date, according to a filing with the Securities and Exchange Commission. But it plans to raise $1.3bn in total, and will have a maximum of 480 investors, say the people. JPMorgan expects to earn commission of at least $13m from the fund.” And since none of these company are quite public, and all of them supposedly trade on a shadow secondary market, the frenzy for which bank can open up the tech bubble market to most high net worth investors, a race for now headed by Goldman with its Facebook investment, has certainly marked the tech top. One thing that is certain is that those who mostly enjoy using twitter as a free information conduit will now aggressively seek to find a replacement that is not backed, and thus at the mercy, of the Fed’s favorite bank.

More from the FT:

Besides the Twitter stake, JPMorgan hopes to invest another third of the fund in one other private web company – possibly games maker Zynga or telephony provider Skype.

The final third of the fund will be allocated among six other companies, they said – possibly to include coupons site LivingSocial, or Gilt, the flash-sales site. Twitter will be the fund’s focus. The company has 253m unique users per month, up 85 per cent from a year ago, according to venture


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Do Plunging Tax Refunds And Declining Tax Withholdings Predict A Consumption Collapse And A Subpar Nonfarm Payroll Number?

Courtesy of Tyler Durden

Almost a year ago, Zero Hedge looked at the trend in US tax refunds, and we found that last year the government was doing everything in its power to accelerate the remittance of refunds to taxpayers. Back then we said that “one of the primary reasons why consumers may have exhibited an abnormal propensity to spend in January and most of February (at least according to government, if not Gallup, data), is the much greater individual tax refunding conducted by the Treasury/IRS this year compared to the prior year.” But if accelerated tax refunds was the story in 2010, in 2011, at least so far in the year, it is precisely the opposite. In fact, to date the IRS has refunded nearly $20 billion less compared to 2010, and about $14 billion less than in 2009. With consumers suddenly having far less cash, does this mean that February and March are set to be major disappointments from a retail sales perspective, and any other vertical having to do with consumer “strength”?

Using Daily Treasury Statement data, we compile the weekly data for the first 13 weeks heading into April 15 (the point by which most refunds have been issued), and find that both average weekly remittance and 2011 cumulative refund issuance is running at a nearly 20% lower run rate than 2010.

Below we chart the weekly data for 2009-2011…

And cumulative:

For anybody but the Koolaid master at Goldman Sachs (who we are confident will have a rebuttal to our thesis within 72 hours), this is certainly a troubling development.

On the other hand it may simply indicate that US taxpayers have maxed out on their withholding exemptions, and as a result are due far less from the IRS, as we suggested early in 2010.

BNY’s Nicholas Colas has some additional perspectives on why a nearly 20% cumulative shortfall has developed between 2010 and 2011 refunds, as well as why tax withholding data indicates that the NFP estimate of +185,000 for this Friday may be woefully otpimistic. His observations below:

The logical question about this shortfall is simple: “Why?” There are a few potential answers that relate to both the timing of filing/refunds as well as the total amount that may eventually be refunded.

  • Incentives to file early have declined in 2011. The Homebuyer Tax Credit expired


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Swing trading virtual portfolio – week of February 28th, 2011

This post is for live trades 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.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here

Optrader 

Swing trading virtual portfolio

 

One trade virtual portfolio





 
 
 

Phil's Favorites

Exit Stage 3 Delayed; Another Technocrat; Bank Bailout Coming; What About Beppe Grillo?

Courtesy of Mish.

Italy’s president, Sergio Mattarella, asked Renzi to stay on as prime minister. Renzi agreed to do so until a budget is in place, likely later this week.

The vast majority of the population wants an immediate election, but Mattarella wants another technocrat.  Voter be damned, Italy’s 4th consecutive technocrat prime minister is coming up. I am available, and waiting a call.

The first mission of the new technocrat will be to pass legislation that will make it much harder for Beppe Grillo’s Five Star Movement (M5S) to get into power. Voters be damned again.

Exit Stage 3 Delayed

Please consider Renz...



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Zero Hedge

'Footloose' Comes To Brussels - Europe Unleashes "Dance Tax"

Courtesy of ZeroHedge. View original post here.

"Everybody cut loose".. but be prepared to pay for it in Europe. As Martin Armstrong notes, if you dance in a bar in Brussels, you must pay a tax!

The patrons of Bonnefooi, a cafe in the center of Brussels, last week received a visit from a City inspector.

The inspector asked them to pay the ...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Dow Sets Record as Bank Stocks Rally, Investors Shrug Off Italy (Bloomberg)

U.S. stocks climbed and the Dow Jones Industrial Average set a record as a rally in financial and technology shares reversed a dip in early trading after Italian voters rejected a constitutional referendum.

Japan's Labor Shortage Is Worst in the Leas...



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ValueWalk

Holidays gift ideas for every category of male

By Jacob Wolinsky. Originally published at ValueWalk.

Black Friday and Cyber Monday are over but with the Holiday season coming up and my wife always says it is pretty difficult to shop for men, so we thought we would make a guide. The good news is there is still time and (sometimes a need) to get a gift for your husband (shout out to our very loyal and dedicated for our 6 female readers), or yourself, son, father etc. Not every man wants the same type of gift – some like athletic items, home improvement stuff – not only do we have a list but we have a short video for those who prefer that format. See our Holidays gift ideas list be category below followed by the video. Note each item on the list can be found on ...



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Promotions

Phil's Stock World's Las Vegas Conference!

 

Come join us for the Phil's Stock World's Conference in Las Vegas!

Date:  Sunday, Feb 12, 2017 and Monday Feb 13, 2017.            

Beginning Time:  8:00 am Sunday morning

Location: Caesar's Palace in Las Vegas

Notes

Caesar's has tentatively offered us rooms for $189 on Saturday night and $129 for Sunday night. However, we have to sign the contract ASAP. We need at least 10 people to pay me via Paypal or we may lose the best rate for the rooms. (Once we are guaranteed ten attendees, I will put up instructions to call the hotel for individual rooms.)

The more people who sign up,...



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Members' Corner

Once In A Lifetime?

Courtesy of Nattering Naybob.

Summary
Discussion, critique and analysis of the potential impacts on equity, bond, commodity, capital and asset markets regarding the following:
  • Dec 4th Italian Constitutional Referendum
  • Referendum Result; Market Reaction
  • Political Reaction; Opposition Party Reaction
Last Time Out
Since the end of World War II, 71 years have passed during which, the "perfect" balance has resulted in 63 different Italian governments, or more often than most change shoes.  Instead of being a real second legislative check, that balance is seemingly a weapon of mass distraction and instrument of political vetoes whi...

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OpTrader

Swing trading portfolio - week of December 5th, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

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.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Kimble Charting Solutions

Inflation indicator testing multi-year breakout cluster!

Courtesy of Chris Kimble.

Some tools are used to measure inflation or lack of. Some look at the price of Crude Oil, Doc Copper or the Commodities Index (CRB) to determine if inflation or deflation is in play. Since 2011, most commodities have created a series of lower highs and lower lows and for many, it has been easier to make the case of deflation than inflation, is in play.

Below looks at another tool, that is often used to determine if inflation or deflation is in play. This tool we are referring too is the TIPS/TLT ratio-

CLICK ON CHART TO ENLARGE...



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Chart School

Weekly Market Recap Dec 4, 2016

Courtesy of Blain.

The week that was…

The market needed a pause after the frenetic post election rally, and it finally arrived this week.  The pullback was mild as bulls would like.  This week’s “fear of the week” was Italy’s political referendum which happened today… and was rejected.

Italian voters were asked in a referendum to approve changes to the country’s constitution, which have been called the most sweeping since the end of World War II. The proposed reforms would cut the Senate’s size by two-thirds and reduce powers held by the country’s 20 regional governments. Italian Prime Minister Matteo Renzi believes the changes will aid efficiency in parliament.

The reforms could also “make it easier to implement important legislation (such as measure...



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Digital Currencies

Largest US Bitcoin Exchange Is "Extremely Concerned" With IRS Crackdown Targeting Its Users

Courtesy of ZeroHedge. View original post here.

Last Thursday we reported that in a startling development seeking to breach the privacy veil of users of America's largest bitcoin exchange, the IRS filed court papers seeking a judicial order to serve a so-called “John Doe” summons on the San Francisco-based Bitcoin platform Coinbase.

The government’s request is part of a bitcoin tax-evasion probe, and se...



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Mapping The Market

The Most Overlooked Trait of Investing Success

Via Jean-Luc

Good article on investing success:

The Most Overlooked Trait of Investing Success

By Morgan Housel

There is a reason no Berkshire Hathaway investor chides Buffett when the company has a bad quarter. It’s because Buffett has so thoroughly convinced his investors that it’s pointless to try to navigate around 90-day intervals. He’s done that by writing incredibly lucid letters to investors for the last 50 years, communicating in easy-to-understand language at annual meetings, and speaking on TV in ways that someone with no investing experience can grasp.

Yes, Buffett runs an amazing investment company. But he also runs an amazing investor company. One of the most underappreciated part of his s...



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Biotech

Epizyme - A Waiting Game

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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