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Overnight Wrap: Euro Plummets As Q€ “Priced In”, Futures “Coiled” Ahead Of Payrolls

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

If yesterday morning, the key macro data was the current , and projected, weakness in China (whose record jump in FX deposits indicates fears about capital outflows are alive and well, and that the highest currency depreciation risk in 2015 is for none other than the Chinese currency), then overnight we got more economic data out of Europe that, at least for now, suggest that the collapse in the Euro is boosting European factory order, with German Industrial Production not only beating expectations, but the prior month being revised from 0.1% to 1.0% – the fifth consecutive increase in production. Spain promptly met that “beat and raise”, when it also reported a better than expected 0.4% (est -0.3%) with December revised higher to 0.0%. All of which was to be expected – as we noted yesterday, the main reason for transitory European strength in a zero-sum world, is the soaring USD and the collapsing, recession-level US factory orders.

The question stands: how much longer will the Fed allow the ECB to export its recession to the US on the back of the soaring dollar, and how much longer will the market be deluded that “decoupling” is still possible despite a dramatic bout of weakness in recent US data. Look for the answer in today’s BLS report, which – if the Fed is getting secound thoughts about its rate hike strategy in just 3 months – has to print well below 200,000 to send a very important message to the market about just how much weaker the US economy is than generally perceived.

For now, however, the ECB is getting its way, and the question of just how much European QE is priced in, remains open, with peripheral bond yields dropping to new all time lows for yet another day, while the EURUSD has plunged to fresh 11 year lows, sliding below 1.094, and making every US corporation with European operations scream in terror.

Looking at markets, US equities are just barely in the red, coiled to move either way when the seasonally-adjusted jobs data hits. it has been very quiet ahead of non-farm payrolls in core fixed income and equity markets, however peripheral curves have been bull flattening throughout the European session, with record low yields for Spanish, Portuguese, Italian…
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Private Police: Mercenaries For The American Police State

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by John Whitehead via The Rutherford Institute,

Corporate America is using police forces as their mercenaries.”—Ray Lewis, Retired Philadelphia Police Captain

It’s one thing to know and exercise your rights when a police officer pulls you over, but what rights do you have when a private cop—entrusted with all of the powers of a government cop but not held to the same legal standards—pulls you over and subjects you to a stop-and-frisk or, worse, causes you to “disappear” into a Gitmo-esque detention center not unlike the one employed by Chicago police at Homan Square?

For that matter, how do you even begin to know who you’re dealing with, given that these private cops often wear police uniforms, carry police-grade weapons, and perform many of the same duties as public cops, including carrying out SWAT team raids, issuing tickets and firing their weapons.

This is the growing dilemma we now face as private police officers outnumber public officers (more than two to one), and the corporate elite transforms the face of policing in America into a privatized affair that operates beyond the reach of the Fourth Amendment.

Mind you, it’s not as if we had many rights to speak of, anyhow.

Owing to the general complacency of the courts and legislatures, the Fourth Amendment has already been so watered down, battered and bruised as to provide little practical protection against police abuses. Indeed, as I make clear in my book A Government of Wolves: The Emerging American Police State, we’re already operating in a police state in which police have carte blanche authority to probe, poke, pinch, taser, search, seize, strip and generally manhandle anyone they see fit in almost any circumstance. Expanding on these police powers, the U.S. Supreme Court recently gave law enforcement officials tacit approval to collect DNA from any person, at any time.

However, whatever scant protection the weakened Fourth Amendment provides us dissipates in the face of privatized police, who are paid by corporations working in partnership with the government. Talk about a diabolical end run around the Constitution.

We’ve been so busy worrying about militarized police, police who shoot citizens first and ask questions later, police who shoot unarmed people, etc., that we failed to take notice of the corporate army that was being assembled under our very…
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ISIS Set Iraqi Oil Fields On Fire, Stalls Military Advance

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Thick black smoke billowing from oil wells northeast of the city of Tikrit is obstructing Shi'ite militiamen and Iraqi soldiers attempts to drive ISIS from the Sunni Muslim city after militants set them on fire. Reuters reports a witness and a military source said Islamic State fighters ignited the fire at the Ajil oil field to shield themselves from attack by Iraqi military helicopters. As we noted previously, the battle for Tikrit is key as it will determine whether and how fast the Iraqi forces can advance further north and attempt to win back Mosul, the biggest city under Islamic State rule.

As Reuters reports,

Islamic State militants have set fire to oil wells northeast of the city of Tikrit to obstruct an assault by Shi'ite militiamen and Iraqi soldiers trying to drive them from the Sunni Muslim city and surrounding towns, a witness said.

The witness and a military source said Islamic State fighters ignited the fire at the Ajil oil field to shield themselves from attack by Iraqi military helicopters.

The offensive is the biggest Iraqi forces have yet mounted against IS, which has declared an Islamic caliphate on captured territory in Iraq and Syria and spread fear across the region by slaughtering Arab and Western hostages and killing or kidnapping members of religious minorities like Yazidis and Christians.

Black smoke could be seen rising from the oil field since Wednesday afternoon, said the witness, who accompanied Iraqi militia and soldiers as they advanced on Tikrit from the east.

Control of oil fields has played an important part in funding Islamic State, even if it lacks the technical expertise to run them at full capacity.

Before IS took over Ajil last June, the field produced 25,000 barrels per day of crude that were shipped to the Kirkuk refinery to the north-east, as well as 150 million cubic feet of gas per day piped to the government-controlled Kirkuk power station.

An engineer at the site, about 35 km (20 miles) northeast of Tikrit, told Reuters last July that Islamic State fighters were pumping lower volumes of oil from Ajil, fearing that their primitive extraction techniques could ignite the gas.

Bombing in August damaged the Ajil field's control room, according to the U.S. Energy Information Administration.

The outcome of the battle for


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Mutiny At The BoJ: Board Member Warns Of “Dire Consequences”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

There’s trouble in Keynesian paradise. 

Earlier this week we noted that economist (and former BOJ member) Yuri Okina has become concerned about the destabilization of the government bond market occasioned by Japan’s move to monetize all of JGB gross issuance. At issue is a lack of liquidity which in turn inhibits price discovery and promotes volatility. We also noted that while this exact same dynamic is unfolding in the US (as shadow banking liquidity dries up), Japan is probably the most vulnerable to violent swings in government bond yields: 

What’s especially perturbing about this scenario, is that sapping liquidity from the market has the potential to create enormous volatility (as we saw on October 15 of last year when Treasurys staged a six standard deviation move in the space of a few hours), something the pot committed BOJ simply cannot afford lest the house of cards should come cascading down. In other words, if yields on JGBs become increasingly unwieldy because either traders lose confidence in the central bank’s ability to manage the ponzi or a lack of liquidity triggers excessive volatility (or both), it’s game over or, as BlackRock put it: “…the nightmare scenario would be a spike in JGB rates leading to a fiscal crisis.

We saw evidence of this just one day later when the monthly auction for JGB 10s was weak causing yields to jump. That same day, Abe adviser Etsuro Honda expressed further doubts about the utility of additional easing, saying (basically) that the BOJ should just quit while it’s ahead (or while it’s not as far behind as it would be if continues to double and triple down on the ponzi scheme). 

Today, courtesy of Takahide Kiuchi (who voted against the latest round of QE), we get perhaps the strongest rebuke of Kuroda-style easing yet, as the BOJ board member warns of “dire consequences” if the central bank continues to blatantly disregard the “side effects” of its policies. 

What side effects you ask? Why, the very same illiquidity and volatility that we’ve been pounding the table on for years. 

From Dow Jones: 

Mr Kiuchi said if the bank continues with the current program, which absorbs nearly all of newly issued government debt, the market will see a drop in liquidity--the ease with which


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Gold Prices And Real Interest Rates

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Erico Matias Tavares via Sinclair & Co.,

Are gold prices going to US$ 5,000 or US$500 an ounce?

Here's one important component that you might need to consider in your forecast: the direction of US dollar real interest rates.

Gold tends to perform well in US dollar terms when US real interest rates are trending lower, meaning that the spread between the interest rate and expected inflation is narrowing, and poorly when they are trending higher.

There are several ways to calculate real interest rates; the most insightful attempt to capture investors' future expectations based on actual market data. The US Treasury makes this easy for us, providing real yields on Treasury Inflation Protected Securities (“TIPS”) on a daily basis for maturities ranging from 5 to 30 years, as shown in the graph below.

Daily Real Interest Rates for Different Maturities: 2 Jan 03 – Today

The question now becomes which of these maturities, if any, is better suited to gauge the relationship with gold prices. In other words, do investors attribute greater weights to shorter-term inflation expectations, like five years, or to longer maturities? While these generally track each other, at times the differentials can be quite significant, as shown in the graph above.

Since theoretically we can argue either way, we decided to use the maturity with the lowest correlation coefficient (the lower the real interest rate the higher the gold price). The 10 year maturity was thus selected, with a value of -0.86 going back to January 2003, although the others were not that far off [Note: -1 is the lowest value, meaning perfect negative correlation].

Here’s how the two variables have performed over time. Gold prices have generally followed the opposite trend of 10 year real interest rates (which are shown in the following graph in reverse order), with the exception of 2005.

Daily Gold Price (Continuous Futures Contract)(LHS) and 10 Year Real Interest Rates (RHS): 2 Jan 03 – Today

Looking at the graph, it seems as if the high negative correlation coefficient is masking the fact that the magnitude of gold price swings appears to lead real interest rates, with its trends bottoming or topping in advance. One explanation is that gold might convey a stronger signal in terms of…
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Dramatic Explosion Footage: Warren Buffett-Owned Oil Freight Train Derails, Bursts Into Flames

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Back in March 2013 we wrote a post presenting “the new US petroleum pipelines” in which we explained “why crony capitalist #1, the “rustic” Octogenarian of Omaha, and Obama tax advisor #1, Warren Buffett has been aggressively attempting to corner the railroad market, while the administration relentlessly refuses to allow assorted new, and very much competing petroleum pipelines from America’s neighbor to the north to cross through the US.” The answer was shown on the chart below which showed the exponential increase in petroleum rail car loadings.

It also explains why after Buffett’s purchase of Burlington Northern Santa Fe (BNSF) in 2009, Obama has been so staunchly against allowing the Keystone XL pipeline: because if there is anything that would allow Buffett to preserve the momentum of his soaring oil transit business, it is maintaining a veto on any competing pipelines. A veto which Obama implemented for the latest time just a few days ago.

Of course, it would be uncouth of the US president to say that he is against a pipeline because one of his crony backers, his tax advisor (“push income tax higher all you want, but don’t you dare touch that capital gains and dividend tax”), and perhaps the biggest single beneficiary of the government bailout of Wall Street in 2008, tells him to. So instead Obama, to appease his progressive rank and file, decided to crack down on the “danger” of pipelines – after all, the world is riddled with horror stories about the tens of thousands of miles of US commodity pipelines spontaneously combusting, exploding or otherwise blowing up and destroying the pristine nature all around them.

Maybe not, but that’s where the “unbiased” media comes into play. The same media which we doubt will have much if anything to say about the train derailment, crash and subsequent massive explosion which took place at 1:20 pm in a rural area where the Galena River meets the Mississippi.

The train in question? One of Warren Buffett’s own: a BNSF Railway freight train loaded with crude oil.

BNSF said the train has 105 cars, 103 of which were carrying crude oil. The other two cars were buffer cars loaded with sand. A release from the Jo Daviess County Sheriff’s Department confirmed it was Bakken
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John Kerry: “Military Pressure May Be Needed To Oust Syria’s President “

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Last week, after reading a Time article titled “Why Bashar Assad Won’t Fight ISIS” written by a journalist whose recent work includes “The YouTube War“, and who sourced two unnamed, anonymous sources to reach the conclusion that Syria’s president Assad is in cahoots with ISIS, we made a simple conclusion: “The Stage Is Set For The Syrian Invasion.” Barely a week has gone by and the wheels for the Syrian invasion are indeed turning: earlier today, US Secretary of State John Kerry (who one hopes doesn’t use kerryemails.com as a work email server) who is on a trip to Saudi Arabia unveiled the next steps when he said that “military pressure may be needed to oust Syria’s President Bashar al-Assad.

US Secretary of State John Kerry attends a meeting of Gulf foreign ministers at
Riyadh Air Base, on March 5, 2015 in the Saudi capital (AFP Photo/Evan Vucci)

But wait, wasn’t Obama’s war in Iraq, authorized by Congress, solely a means to fight the stateless Islamic State of Syria and Iraq “scourge”? Or was all of that merely a pretext to do what the US tried once already in 2013 and failed?

AFP quotes Kerry: “He’s lost any semblance of legitimacy, but we have no higher priority than disrupting and defeating Daesh and other terror networks“, he told reporters, using an Arabic acronym for the Islamic State group which has seized swathes of Syria and Iraq.

Actually, the highest priority is not “Daesh” which is a populist distraction aided by some truly Hollywood-grade video editing and YouTube clips, but who controls the ground under Assad’s feet: that all important gateway from the middle east into Turkey, and then, Europe. A gateway that is critical to the one nation that has all the natural gas in the world, and no end market to sell it to: Qatar.

Of course, Assad knows all of this: late last year, Assad told French reporters, “let’s be honest: Had Qatar not paid money to those terrorists at that time, and had Turkey not supported them logistically, and had not the West supported them politically, things would have been different. If we in Syria had problems and mistakes before the crisis, which is normal, this doesn’t necessarily mean that the events had…
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Lord Rothschild Warns Investors: “Geopolitical Situation Most Dangerous Since WWII”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

For Lord Rothschild, preserving wealth has "become increasingly difficult," recently, as he warns, rather ominously, "we are faced with a geopolitical situation as dangerous as any we have faced since World War II." Furthermore Lord Rothschild summarizes his thoughts briefly, eloquently, and ominously… as he touches on the global debasement of fiat currencies, disappointing growth (in light of massive monetary stimulus), and extreme stock market valuations. As Rothschild Wealth Management noted last year, equities are not well supported by current valuations, while monetary policy is limited by high debt levels and interest rates that are already close to zero… exposing equities to a potentially sharp correction.

Lord Rothschild summarizes his thoughts briefly, eloquently, and ominously…

Our policy has been clearly expressed over the years. Simply put, it is to deliver long-term capital growthwhile preserving shareholders’ capital; the realisation of this policy comes at a time of heightened risk, complexity and uncertainty. The economic and geopolitical environment therefore becomes increasingly difficult to predict.

The world economy grew at a disappointing and uneven rate in 2014 after six years of monetary stimulus and extraordinarily low interest rates.

Stock market valuations however, are near an all-time high with equities benefiting from quantitative easing.

Not surprisingly, the value of paper money has been debased as countries have sought to compete and generate growth by lowering the value of their currencies – the Euro and the Yen depreciated by over 12% against the US Dollar during the course of the year and Sterling by 5.9%.

In addition to this difficult economic background, we are confronted by a geopolitical situation perhaps as dangerous as any we have faced since World War II: chaos and extremism in the Middle East, Russian aggression and expansion, and a weakened Europe threatened by horrendous unemployment, in no small measure caused by a failure to tackle structural reforms in many of the countries which form part of the European Union.

*  *  *

Lord Rothschild's comments appear to confirm the concerns that Rothschild Wealth Management noted last year, that more muddle through was most probable but depression possible:

Notably, equities are not well supported by current valuations, while monetary policy is limited by high debt levels and interest rates that are already close to zero...exposing equities to a potentially sharp correction."

Four main scenarios

We


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How Long Will Markets Ignore This Trend This Time?

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Did initial jobless claims just flash the biggest 2007 deja-vu warning yet?

Then…

Now…

It’s different this time of course since fewer jobs must mean moar buybacks… which is entirely sustainable.

h/t Brad Wishak at NewEdge





No Laughing Matter: Fed Laughed As Bubble Burst

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Whether it’s their remarkable ability to justify the creation of asset bubbles by claiming they are “smoothing out the business cycle” or something more subtle, like getting the day of the week wrong on an official conference call transcript, it’s hard not to chuckle at the Fed. 

At the end of the day though, it’s important to remember that even as they transform modern markets into laboratories and market participants into guinea pigs in the name of figuring out whether high-minded economic theory works when applied to the real world, central bankers are people too, and it’s nice to know that every so often, they get a chance to have a little fun.  

When we parsed the newly released 2009 Fed transcripts yesterday we were too busy looking to uncover things like a previously unreported plan to create a bad bank to look for signs of central planner levity, but fortunately, the research department at Bloomberg was looking for the important stuff. Thanks to their efforts we have the official Fed Chuckle Count for 2009 which, based on the graph below came in at 39.7 — there was oddly no word on what economists polled by Bloomberg were expecting. 

Breaking this down, it’s important to note that recorded incidences of laughter at FOMC meetings hit their highest level on record in July 2007, which coincides exactly with the moment when the housing bubble finally burst (remember: they weren’t laughing at you, they were laughing with you). Here’s a quick rundown of exactly what was going on at “peak chuckle”: 

On July 10, around four months after it warned on the market initially, Moody’s downgraded 399 bonds backed by subprime mortgages which together totaled some $5.2 billion. Meanwhile, S&P suggested it was close to cutting ratings on more than $12 billion in mortgage-backed securities due to declining home prices and rising default rates. On July 12, Fitch Ratings placed 19 structured collateralized debt obligations on Ratings Watch Negative due to a significant deterioration in the underlying portfolios of residential mortgage-backed securities. That same day, S&P cut its ratings on 498 subprime mortgage related bonds worth some $6.39 billion.

 What followed for the Fed was a dramatic decline in spontaneous outbursts of laughter in the halls of the Eccles Building which lasted
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Zero Hedge

Overnight Wrap: Euro Plummets As Q€ "Priced In", Futures "Coiled" Ahead Of Payrolls

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

If yesterday morning, the key macro data was the current , and projected, weakness in China (whose record jump in FX deposits indicates fears about capital outflows are alive and well, and that the highest currency depreciation risk in 2015 is for none other than the Chinese currency), then overnight we got more economic data out of Europe that, at least for now, suggest that the collapse in the Euro is boosting European factory order, with German Industrial Production not only beating expectations, but the prior month being revised from 0.1% to 1.0% - the fifth consecutive increase in production. Spain promptly met that "beat and raise", when it also reported a better than expect...



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Phil's Favorites

Why Amazon and Google are Losing the War

If you missed this earlier, be sure to watch Scott Galloway's presentation on the large global technology companies and the challenges facing them. Galloway discusses Amazon ("pure play commerce doesn't work"), its disruption by Uber, and Macy's, Facebook's bait-and-switch, Instragam ("the most powerful platform in the world"), the smartphone economy (outstanding for employment, terrible for wages), attracting better mates with an iPhone, Apple's successful move down the torso into luxury, and more. 

Galloway speaks fast so you may want to watch it twice.  

Why Amazon and Google are Losing the War

Courtesy of 

Professor Scott Gallo...



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Chart School

S&P Maintains Breakout on Successful 20-day MA Test

Courtesy of Declan.

Another day, another successful defense of breakout support. The S&P held on to its 20-day MA and is well placed to bounce of this moving average tomorrow. Volume was down, which for a higher close was maybe a little disappointing.


The Nasdaq closed with a small doji in a very nondescript day for the index. Volume was lighter too.


The Russell 2000 continued to hold its breakout. Like the S&P, the 20-day MA is available to lend support too.

...

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All About Trends

Mid-Day Update

Reminder: David 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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Market Shadows

Kimble Charts: Utilities

Kimble Charts: Utilities

By Ilene

Chris Kimble shared his chart of the Utilities Select Sector SPDR ETF, XLU, with us.

The one month performance inset shows XLU’s uninspiring performance compared to every other ETF on the list. However, the rather steep bullish falling wedge pattern says that it may be time for a bounce.

[Click on chart to enlarge]

Chris likes XLU for a short-term bounce off the 200 day moving average at $44. One way to play this setup is to buy the XLU outright. Chris suggests a 3% stop loss on the shares.

Another bullish play is to use options in a strategy designed by Phil:

1. Buy the XL...



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Insider Scoop

Analysts On Dicks Sporting Goods: 'Pain Mostly Behind Us'

Courtesy of Benzinga.

Related DKS Benzinga's Top Downgrades Needham Downgrades Dick's Sporting Goods To Hold DICK's Sporting Q4 Earnings Beat on Growth Strategies - Analyst Blog (Zacks)

Dicks Sporting Goods Inc (NYSE: DKS) faces pressure from winter weather and a West Coast port slowdown, but troubles from its golf...



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Sabrient

Sector Detector: Stocks break out again but may be running on fumes

Courtesy of Sabrient Systems and Gradient Analytics

Despite low trading volume, a strong dollar, mixed economic and earnings reports, paralyzing weather conditions throughout much of the U.S., and ominous global news events, stocks continue to march ever higher. The world remains on edge about potential Black Swan events from the likes of Russia, Greece, or ISIS (or lone wolf extremists). Moreover, the economic recovery of the U.S. may be feeling the pull of the proverbial ball-and-chain from the rest of the world’s economies. Nevertheless, awash in investable cash, global investors see few choices better than U.S. equities.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then ...



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OpTrader

Swing trading portfolio - week of March 2nd, 2015

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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Digital Currencies

MyCoin Exchange Disappears with Up To $387 Million, Reports Claim

Follow up from yesterday's Just the latest Bitcoin scam.

Hong Kong's MyCoin Disappears With Up To $387 Million, Reports Claim By  

Reports are emerging from Hong Kong that local bitcoin exchange MyCoin has shut its doors, taking with it possibly as much as HK$3bn ($386.9m) in investor funds.

If true, the supposed losses are a staggering amount, although this estimate is based on the company's own earlier claims that it served 3,000 clients who had invested HK$1m ($129,000) each.

...



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Pharmboy

2015 - Biotech Fever

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

PSW Members - well, what a year for biotechs!   The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down!  The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months.  What could go wrong?

Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.

Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies.  A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's this week's Stock World Weekly.

Click here and sign in with your user name and password. 

 

...

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Option Review

SPX Call Spread Eyes Fresh Record Highs By Year End

Stocks got off to a rocky start on the first trading day in December, with the S&P 500 Index slipping just below 2050 on Monday. Based on one large bullish SPX options trade executed on Wednesday, however, such price action is not likely to break the trend of strong gains observed in the benchmark index since mid-October. It looks like one options market participant purchased 25,000 of the 31Dec’14 2105/2115 call spreads at a net premium of $2.70 each. The trade cost $6.75mm to put on, and represents the maximum potential loss on the position should the 2105 calls expire worthless at the end of December. The call spread could reap profits of as much as $7.30 per spread, or $18.25mm, in the event that the SPX ends the year above 2115. The index would need to rally 2.0% over the current level...



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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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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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