Archive for the ‘High Mailing Priority’ Category

PhilStockWorld.com Weekly Trading Webinar

 

PhilStockWorld.com Weekly Trading Webinar – 11-30-16

For LIVE access on Wednesday afternoons, join us at Phil's Stock World – click here!

Major Topics:

00:02:01 Checking on the Markets
00:10:28 Shortings Calculation
00:15:20 $NYA Charts
00:20:06 ES and NQ
00:21:32 AAPL Charts
00:25:10 Dollar Charts
00:29:33 CL
00:30:37 AAPL
00:33:33 Italy Voting
00:38:43 Healthcare
00:40:24 Dollar
00:41:58 AAPL
00:44:32 Portfolio Review
00:48:00 Health Insurance Companies
00:53:51 Trade Ideas
01:02:08 SQQQ
01:05:10 Beige Book
01:11:16 REITS
01:17:32 More Trade Ideas
01:20:18 Long Term Portfolio
01:23:31 Butterfly Portfolio
01:25:05 Checking on the Markets
01:30:33 Russell 200
01:37:20 UNG
01:39:00 Portfolio Review
01:48:21 AAPL Charts
01:51:40 CHecking on the Indexes

 

Phil's Weekly Trading Webinars provide a great opportunity to learn what we do at PSW. Subscribe to our YouTube channel and view past webinars, here. For LIVE access to PSW's Weekly Webinars – demonstrating trading strategies in real time – join us at PSW — click here!

 





What Happened To The Earnings Recession?

 

What Happened To The Earnings Recession?

Summary: A year ago, profits for companies in the S&P had declined 15% year over year (yoy). Sales were 3% lower. Margins had fallen more than 100 basis points. The consensus believed all of this signaled the start of a recession in the US.

How has that dire prognosis worked out? In a word: terrible. Jobless claims are at more than a 40 year low and retail sales are at an all-time high. The US economy continues to expand.

In the past year, S&P profits have grown 12% yoy. Sales are 2.4% higher. By some measures, profit margins are at new highs. Why were the critics wrong? They confused a collapse in one sector – energy, where sales dropped by 60% – with a general decline in all sectors. Energy was considered the same as financials in 2007-08; events since then show that it is nothing like financials.

Where critics have a valid point is valuation: even excluding energy, the S&P is highly valued. With economic growth of 3-4% (nominal), it will likely take exuberance among investors to propel S&P price appreciation at a significantly faster annual clip.

* * *

A year ago, profits for companies in the S&P had declined 15% year over year (yoy). Sales were 3% lower. Margins had fallen more than 100 basis points. The consensus believed all of this signaled the start of a recession in the US.

The chart below was from Barclays at the start of the 2016, who said that big drops in profitability like those last year have coincided with a recession 5 of the last 6 times since 1973 (read further here). Enlarge any chart by clicking on it.


How have these dire prognoses for the US worked out? In a word: terrible. Jobless claims are at more than a 40 year low (first chart below) and retail sales are at an all-time high. US demand growth, measured a number of different ways, has been about 3-4% nominal yoy during the past two years (second chart below).


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Valeant, Salix, sales force and asset sales

 

Valeant, Salix, sales force and asset sales

Courtesy of 

Valeant put out a press release today about expansion of sales force for their Salix business:

Valeant Announces The Initiation Of A Primary Care Sales Force For Xifaxan® And Relistor®

LAVAL, Quebec, Nov. 29, 2016 /PRNewswire/ — Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX) ("Valeant") today announced that it has initiated a significant sales force expansion to focus on potential primary care physician (PCP) prescribers of Xifaxan for irritable bowel syndrome with diarrhea (IBS-D) and Relistor for opioid induced constipation (OIC.)  With the launch of the expanded sales force effort over the coming weeks, the company expects to reach a significant majority of likely Xifaxan and Oral Relistor primary care prescribers.  The costs of this program were considered in previously announced guidance for the full year 2016.

"Our goal in building a primary care sales force is to maximize opportunities for Xifaxan and Relistor to help our products reach full potential. Xifaxan and Relistor are integral to our gastrointestinal franchise which remains a core asset for future growth potential in the hands of Valeant," said Joseph C. Papa, chairman and chief executive officer. "With approximately 70% of IBS-D patients initially presenting with symptoms to a primary care physician, our dedicated PCP sales force will be better able to reach the patients in need of IBS-D treatment and in doing so will further advance our mission to improve people's lives with our healthcare products."

There are several implications.

First the stories that say Valeant is selling Salix are almost certainly false. These stories are responsible for the stock rising 30 percent recently.

Secondly it puts the acid to the idea that Mike Pearson (Valeant's former CEO) was good at cutting costs. As this story makes clear Salix had a Primary Care Sales Force when Valeant acquired it. However they were debating whether to keep it. (Obviously they gutted it and are now being forced to reinstate it.)

This happened all over Valeant. Lots of businesses are melting ice cubes where the sales force has been neutered or where drugs have had prices pushed up to


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False News

 

False News

By George Friedman, Mauldin Economics 

Since the election this month of Donald Trump as the US president, something considered to be a new phenomenon has become a focus of attention. Some suspect that false news may have swayed the election. Perhaps equally as important, some claim this false news was planted by Russian intelligence under orders of President Vladimir Putin, who allegedly supported Trump’s election.

Given that a recount of votes in some states is likely—with some saying Russians might have hacked voting machines—it increasingly is not simply a matter of politics but of geopolitics.

During the Korean War, the Soviets planted a false story that the United States was using biological weapons in Korea. In those days, such stories were planted in newspapers.

For example, an Indian journalist might be induced to publish a story quoting American generals who had visited India, stating that Korea was a perfect testing ground for germ warfare. Once the article was published, other newspapers might begin quoting the Indian story.

As the news circulated around the world, the reference became prestigious British or French newspapers. The story would no longer quote its forgotten origins in India and would now be treated as credible—if not quite news. The quoted generals would be asked for interviews and refuse them.

Useful Idiots

By the time the story made US newspapers, it would focus on the generals’ refusal to confirm or deny the use of chemical weapons in Korea. A lie had become accepted truth. But it’s actually not true. The story was adopted full-bore by communists around the world, as well as sympathizers, and those whom Vladimir Lenin called “useful idiots.”

These useful idiots were not communists, but were prepared to believe whatever they heard that portrayed the West as monsters. They were priceless to the Soviets since communists were always suspected of being pro-Soviet for some reason. But the useful idiots were not communists. They simply would believe anything. But alas, over time, the public came to know who they were, and they were lumped in with the communists.

For all the efforts of Soviet intelligence—including a great deal spent on agitprop—the Korean story…
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Federal Reserve Meeting Minutes: Stronger than Oak

 

Federal Reserve Meeting Minutes: Stronger than Oak

By Danielle DiMartino Booth, Courtesy of Mauldin Economics
 

Ever heard of an Alpha quote? That’s how best to classify, “Show me the money!!!”

It didn’t take you but a nanosecond to picture Jerry Maguire screaming that line into his phone. The shame, for lack of a better word, is that another quote from the same movie, that’s almost as good, will only live on to minor fame.

Getting to the not quite as famous quote requires that you navigate not one, but two scenes in the 1996 Tom Cruise blockbuster. Sports agent Maguire has landed an Odessa, Texas high school superstar quarterback. In perfect stereotypical form, the boy’s father is chief negotiator. Out Maguire drives to dusty West Texas to seal the deal, on paper, to which the father replies: “You know I don’t do contracts, but what you do have is my word. And it’s stronger than oak.” One firm handshake later, we see an elated Maguire driving off singing and pounding his steering wheel to the beat of Tom Petty’s “Free Falling.”

Of course, a betrayal follows as sure as night follows day and the father signs, yes signs, with a rival agent offering a sweeter as in “Sugar” deal. But what about the strength of that oak? A pumped-up Maguire arrives for the young star’s big moment and learns that in all likelihood Cushman Senior does sign contracts. To that Maguire bitterly retorts, “I’m still sort of moved by your, ‘My word is stronger than oak’ thing.” The moral we saw coming: Always get it in writing.

But what happens when those written words still aren’t good enough? The occasion of the release of most Federal Open Market Committee (FOMC) Meeting Minutes would seem to be a great opportunity to get a behind-the-scenes take on all those round the table machinations. Minutes of lame duck meetings – no press conference, no action – hold even greater appeal, especially if multiple dissents accompany the decision. Hence the media jockeying for instant live reaction at 2 pm EST three weeks to the minute from the moment the statement is released. Hey, it beats waiting around five years for the meeting transcripts.

Did someone mention transcripts? In 2008, Janet Yellen herself suggested – in plain English, mind you – that the FOMC deploy the Minutes as they would…
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The Battle Of Black Friday: Visualizing The Winners And Losers

Courtesy of ZeroHedge. View original post here.

Black Friday – the name elevates images of people standing in long lines, fighting the crowds to grab the best bargains of the year, and filling the shopping carts to the rims. But, as FreeShippingCode.com notes, from another perspective Black Friday is the day when retailers try to push their sales to the last limits in order to maximize their profits, i.e. move from red (loss) column to the black (profit).

While the shoppers try to grab the best bargains of the year, the retailers, on the other hand, try to achieve their Black Friday sales targets, this battle continues till the end of the day to mark the winners and losers of this battle.

Source: FreeShippingCode.com

The Changing Battlefield

Black Friday sales reached record levels in the last year, but if you are wondering why you did not see those long lines and scenes of shoppers fighting for the best bargains, it is because most of the Black Friday shopping last year was done online. Sales data from last year reveals that 51% Black Friday shoppers used their smartphones to shop online and only 49% headed to the shopping malls and big retail stores. Shoppers have all the good reasons to justify their choice of using their mobile phones and desktops to do their Black Friday shopping online.

A Look At Some Of The Winners

The online shopping landscape has dramatically changed the shopping behavior of Black Friday shoppers, as a result, many big retail giants with profound online presence and popularity are enjoying good sales and profits. Let us have a look at some of the major retailers who were able to make it to the victory stands last year.

Amazon came first with a big chunk of the online sales (35%) in the last Black Friday season. Apple with its popular iPad and iPod brands also enjoyed a good Black Friday season last year. Similarly, REI despite its early announcement to remain closed on the big day recorded 26% increase in the online traffic.

Every year Black Friday creates demand for


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The Drums of War

 

The Drums of War

Courtesy of George Monbiot

Published in The Guardian 23rd November 2016Trump’s climate denial is just one of the forces that point towards war.

The combination of automation, complexity and climate change is dangerous in ways we haven’t even begun to grasp.

Wave the magic wand and the problem goes away. Those pesky pollution laws, carbon caps and clean power plans: swish them away and the golden age of blue-collar employment will return. This is Donald Trump’s promise, in his video message on Monday, in which he claimed that unleashing coal and fracking will create “many millions of high-paid jobs”. He will tear down everything to make it come true.

But it won’t come true. Even if we ripped the world to pieces in the search for full employment, leaving no mountain unturned, we would not find it. Instead, we would merely jeopardise the prosperity – and the lives – of people everywhere. However slavishly governments grovel to corporate Luddism, they will not bring the smog economy back.

No one can deny the problem Trump claims to be addressing. The old mining and industrial areas are in crisis throughout the rich world. And we have seen nothing yet.

I have just re-read the study published by the Oxford Martin School in 2013 on the impacts of computerisation. What jumps out today, to put it crudely, is that jobs in the rustbelts and rural towns that voted for Trump are at high risk of automation; while the professions of many Clinton supporters are at low risk.

The jobs most likely to be destroyed are in mining, raw materials, manufacturing, transport and logistics, cargo handling, warehousing and retailing, construction (pre-fabricated buildings will be assembled by robots in factories), office support, administration and telemarketing. So what, in the counties that voted for Trump, will be left?

Farm jobs have mostly gone already. Service and care work, where hope for some appeared to lie, will be threatened by a further wave of automation, as service robots – commercial and domestic – take over. Yes, there will be jobs in the green economy, more and better than any that could be revived in the fossil economy. But they won’t be…
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And So it Begins: Normalizing the Election

 

And So it Begins: Normalizing the Election

By BillMoyers.com

It didn’t take a clairvoyant to predict that President-elect Donald Trump would be almost instantly normalized by the press since he had already been normalized by them when he was a candidate. After a "60 Minutes" interview, Lesley Stahl declared him “more subdued and serious.” NBC’s Andrea Mitchell reported approvingly upon the transition as if proposed White House counselor Steve Bannon and proposed attorney general Jeff Sessions, two men with racism in their pasts, were ordinary appointments. Mitchell’s colleague at NBC, Chuck Todd, chastised Senator Harry Reid, after his eloquent and impassioned attack on Trump, for being “too harsh.” And so the media fell into line. To which we can only invoke John Oliver’s emphatic post-election pronouncement: “THIS IS NOT NORMAL.”

That, however, is only one of the media’s derelictions. Far more serious is their normalization not of Trump but of his voters. The former is typical cowardice under threat of reactionary populism. The latter is an endorsement of reactionary populism that may have far-reaching consequences for whether the country can ever be reunited after having been torn asunder.

First Trump. The media impulse to render Trump ordinary, and their sudden disinclination to criticize him is natural reflex. The press needs him as it needs all presidents because the press need access. Trump was fairly brilliant in branding the mainstream media as his opponents and, worse, a group of snotty elitists who disdained not only him but also his supporters. The general public doesn’t much like the press to begin with and Trump ramped up the hatred, so that, according to some reports, a cluster of his supporters began using the term “luginpresse,” or “lying press,” which is how the Nazis characterized those organs that opposed Hitler. More, they began to intimidate the press, verbally and even physically.

Under normal circumstances a candidate who incited his supporters to attack the press might raise First Amendment issues. But these are not normal circumstances, so Trump can target the press with impunity. Their only recourse is to make peace, which is what they seemed to be doing when they met with Trump this weekend, and peace means less rigorous coverage. The…
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This Is Not Bearish

 

This Is Not Bearish

Courtesy of 

The S&P 500 just made an all-time high for the 11th time this year, and the 1134th time since 1928. Today, the Dow Jones Industrial Average crossed 19,000 for the first time ever. The natural inclination is that now might not be the best time to put new money to work. The data doesn’t support this, at least not in the short term.

The table below shows that average returns six months and one year following an all-time high has been stronger compared with all other days.

new-highs

Taking a longer-term view, 18% of all months have closed at a new all-time high. You can see them represented below by the green dots. New highs are nothing to fear, in fact they are the cornerstone of every great bull market.

spx-hgh

The people that use all-time highs to scare you are the same people who told you that the 27% selloff in the Russell 2000 earlier this year was the canary in the coalmine. Small-cap stocks are now at all-time highs and 40% off their February lows. The main takeaway is this; it’s true that every nasty bear market we’ve ever had followed an all-time high, but all time highs on their own is not a harbinger of bad things to come.





“Everything Is Not Awesome” – Don’t Be The Turkey

Courtesy of Lance Roberts at RealInvestmentAdvice.com

Review

Let’s start with where we left off last week for some context.

“The post ‘Trexit’ rally that started on Wednesday took out the first two levels of resistance with some ease. However, the “sell signal” remains intact with the market now back to extreme overbought levels as shown by the red circles at the top of the chart.

The good news is the market is holding above the downtrend resistance line currently which puts all-time highs as the next logical point of attack if this bull market is to continue.

However, is we step back to a longer-term (weekly) picture we get a little clear picture about the overall directional trend of the market.”

sp500-chart2-111116

The good news, as shown in the next chart, is the market was able to clear that downtrend resistance this week and turn the previous “sell signal” back up. It is not surprising the markets are pushing all-time highs as we saw on Friday.

sp500-chart2-111816

But what about after that? As I noted on Friday:

“Importantly, with next week being a light trading week, it would not be surprising to see markets drift higher. However, expect a decline during the first couple of weeks of December as mutual funds and hedge funds deal with distributions and redemptions. That draw down, as seen in early last December, ran right into the Fed rate hike that set up the sharp January decline.”

As I have noted above, there are a lot of similarities in market action between the “post-Trexit” bounce, “Brexit” and last December’s Fed rate hike. I have highlighted there specific areas of note in the chart above.

As with “Brexit” this past June, the markets sold off heading into the vote assuming a vote to leave the Eurozone would be a catastrophe. However, as the vote became clear that Britain was voting to leave, global Central Banks leaped into action to push liquidity into the markets to remove the risk of a market meltdown. The same setup was seen as markets plunged on election night and once again liquidity was pushed into the markets to support asset prices forcing a


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Phil's Favorites

FRBNY Nowcast 2.7%: Heads Towards Convergence With GDPNow

Courtesy of Mish.

The Federal Reserve Bank of New York “Nowcast” for 4th quarter GDP rose to 2.7%, up from 2.5% last week.

Meanwhile the Atlanta Fed “GDPNow” forecast declined from 3.6% on November 23 to 2.9% yesterday.

The numbers head towards convergence as expected in this corner.

4th Quarter Nowcast Highlights – December 2 2016

  • The FRBNY Staff Nowcast stands at 2.7% for 2016:Q4.
  • News from this week’s data releases provided mixed signals, but overall had a positive impact on the nowcast.
  • Rea...


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Zero Hedge

Erdogan Demands Turks Exchange Their Dollars To Gold, Lira

Courtesy of ZeroHedge. View original post here.

Early this morning, in yet another session of panicked selling, the Turkish Lira crashed to new record lows to just shy of USDTRY 3.60, momentarily going bidless as the currency plunged nearly 400 pips in seconds, after Turkish President Recep Erdogan said the path for investors will be opened with lower interest rates, and urged the central bank to imitate Japan and U.S. where rates are low: “why should we go around with 14-15 percent?” 

The answer is simple: the currency tends to drop when an economy is seen as weak, the political regime unstable, or - yes - a central bank cuts rates, ...



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ValueWalk

We Must Set Muslims Against ISIS

By Mauldin Economics. Originally published at ValueWalk.

There is still a debate over whom the United States is waging war against. Some regard the wave of terrorism undertaken by al-Qaida and the Islamic State as linked significantly to Islam. Others want to distinguish between Islam and these groups in order not to tar an entire religion with the actions of a few.

Clarity, in defining the enemy, is essential to waging a war. If the enemy is terrorism, then the enemy is not a political movement but a method of waging war—no matter who used the method.

...

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Kimble Charting Solutions

Interest rates could peak here, says Joe Friday

Courtesy of Chris Kimble.

The talk over the past couple of months has been, interest rates are rising and the Fed will raise rates very soon. Joe Friday feels a big test is in play, before one can say the “rate trend has changed!”

Below looks at the yield on the 10-year note, over the past 20-years.

CLICK HERE TO ENLARGE

The yield on the 10-year note has remained inside of falling channel (1), creating lower highs and lower lows, for the majority of the past 20-years. The top of the channel is bein...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Goldman Says Trump's Presidency Will Benefit Stocks in Almost Every Sector (Bloomberg)

After years of slowing earnings growth and little in the way of excitement for many Wall Street analysts, many are now hopeful that President-elect Donald Trump will finally make things interesting.

Treasury Pick Mnuchin Says Tax Cuts to Double U.S. Growth (Bloomberg)

U.S. Treasury Secretary-nominee Steven Mnuchin outlined an economic agenda aimed at almost doubling the growth rate of the...



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Chart School

US 30 yr yield, your best defence is?

Courtesy of Read the Ticker.

It is said that a rising stock market with rising interest rates is healthy ! Then why are there massive shipments of 'Adult Diapers' to Wallstreet (joke) ?

The cost of money ($USD) is changing
- Share buy backs will cost more
- Mortgage rates will rise
- Dividends will have to match this
- US Govt interest bill increasing
- 'Deals' just cost more more more!

Short Answer: This is not good.

Click for popup. Clear your browser cache if image is not showing.


Remember the FED QE tends to see interest rates rise...so that wont help! Maybe Janet Yellen will say 'We will do what it takes to save the dollar, and it will be enough!'...

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Members' Corner

Second Hand Stink?

Courtesy of Nattering Naybob.

In what seems to be a recurring scatological humor theme, aka our "Toilet Thursday's" or "Thursday's in the Loo" of the past few weeks, we follow up on The Story of Poo-Pourri.

In Second Hand Stink?, men are not so subtlety reminded that an odiferous fog wafting from the bedroom loo, can indeed kill the moment. 

...

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OpTrader

Swing trading portfolio - week of November 28th, 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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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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Promotions

PSW is more than just stock talk!

 

We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more!

PhilStockWorld.com features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...



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