Archive for the ‘Uncategorized’ Category

Putin: The empty veil of ‘democracy’


Putin: The empty veil of ‘democracy’

Courtesy of  

Cross-published on Counterpunch

In his Orwellian September 28, 2015 speech to the United Nations, President Obama said that if democracy had existed in Syria, there never would have been a revolt against Assad. By that, he meant ISIL. Where there is democracy, he said, there is no violence or revolution.

This was his threat to promote revolution, coups and violence against any country not deemed a “democracy.” In making this hardly-veiled threat, he redefined the word in the vocabulary of international politics. Democracy is the CIA’s overthrow of Mossedegh in Iran to install the Shah. Democracy is the overthrow of Afghanistan’s secular government by the Taliban against Russia. Democracy is the Ukrainian coup behind Yats and Poroshenko. Democracy is Pinochet. It is “our bastards,” as Lyndon Johnson said, with regard to the Latin American dictators installed by U.S. foreign policy.

A century ago the word “democracy” referred to a nation whose policies were formed by elected representatives. Ever since ancient Athens, democracy was contrasted to oligarchy and aristocracy. But since the Cold War and its aftermath, that is not how U.S. politicians have used the term. When an American president uses the word “democracy,” he means a pro-American country following U.S. neoliberal policies, no matter if the country is a military dictatorship or its government was brought in by a coup(euphemized as a Color Revolution) as in Georgia or Ukraine. A “democratic” government has been re-defined simply as one supporting the Washington Consensus, NATO and the IMF. It is a government that shifts policy-making out of the hands of elected representatives to an “independent” central bank, whose policies are dictated by the oligarchy centered in Wall Street, the City of London and Frankfurt.

Given this American re-definition of the political vocabulary, when President Obama says that such countries will not suffer coups, violent revolution or terrorism, he means that countries safely within the U.S. diplomatic orbit will be free of destabilization sponsored by the U.S. State Department, Defense Department and Treasury. Countries whose voters democratically elect a government or regime that acts independently (or even simply seeks the power to act independently of U.S. directives) will be destabilized, Syria- style, Ukraine-style or Chile-style under

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News You Can Use From Phil’s Stock World


Financial Markets and Economy

Bond Funds Have Been Borrowing to Boost Returns (Bloomberg)

For more than two decade, Bill Gross did the seemingly impossible, according to Bill Gross.

Drug that rose 5,000% hasn't come down in price (CNN)

Remember the drug used by cancer and AIDS patients that skyrocketed from $13.50 to $750 a pill? Well, the price has yet to come back to earth.

The company still has not cut the price below $750 even though it vowed that it would on national TV and in a public statement over two weeks ago.

Concerns about the global economy are so far just that (Business Insider)

Concerns about the global economy are so far just that: concerns. 

Screen Shot 2015 10 09 at 5.19.48 PM

What to look for in Netflix’s earnings (Market Watch)

The streaming giant NFLX, -1.39%  is pushing further into the content space, competing for content with rivals such as Inc.’s Instant Video and Hulu, a joint venture of Walt Disney Co.’s DIS, +0.91%  ABC, Comcast Corp.’sCMCSA, -0.80%  NBCUniversal and 21st Century Fox Inc.’s FOXA, +0.39%  network, while also encroaching more on traditional media and film companies.

U.S. Drillers Idle Rigs for Sixth Week as Oil Lingers Near $50 (Bloomberg)

U.S. oil explorers idled rigs for a sixth week as they grapple with crude near $50 a barrel.

Uh-oh (Business Insider)

Wall Street's stock market gurus have been warning us to brace for turbulence as companies announce their Q3 financial results.

cotd factset q4 2015 earnings decline

Oregon sells $10.8M worth of pot in first 6 days (CNN)

Dispensaries in Oregon sold $10.8 million worth of recreational pot in the first six days it was legal, said the Oregon Retailers of Cannabis Association.

Recreational sales became legal in Oregon on October 1, and the association has only tallied revenue through October 6.

How to Make $2.5 Trillion in
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  1. phil

    OOP as of 12:00 on 10/9/2015:

News You Can Use From Phil’s Stock World


Financial Markets and Economy

S&P 500 Futures Little Changed; Alcoa Drops After Earnings Miss (Bloomberg)

U.S. stock-index futures were little changed, after disappointing results from Alcoa Inc. offset optimism from a winning streak that’s put the Standard & Poor’s 500 Index on track for its best week of the year.

France's economy is finally showing some signs of life after years of stagnation (Business Insider)

It's a rare week when there are two positive economic data points coming out of France.

French economy

Gold jumps $12 as U.S. rate hike expectations fade (Market Watch)

Gold prices climbed on Friday, on the back of a weaker dollar and renewed speculation that a Fed rate rise may be delayed into next year.

Gold for December delivery GCZ5, +0.63%  jumped $11.80, or 1.1%, to $1,156.10 an ounce, setting it on track for its highest close since August.

Charting the Markets: Watch Out for the Spikes (Bloomberg)

Asian stocks rise, emerging market currencies rally and zinc surges as much as 10percent.

A customer shops at a Wal-Mart store in Beijing, February 18, 2014.  REUTERS/Kim Kyung-HoonChina Resources unit to sell stakes in Wal-Mart China stores (Business Insider)

A unit of conglomerate China Resources Corp plans to sell minority stakes it holds in 21 outlets of Wal-Mart Stores Inc <WMT.N> around China, a spokesman for the U.S. retailer told Reuters on Friday.

State-backed China Resources SZITIC Trust Co Ltd has listed for sale its stakes in the stores for a combined 3.3 billion yuan ($525 million), according to official postings from the Chinese firm on the Shanghai United Assets and Equity Exchange.

CEOs and other company insiders are gorging on shares (Market Watch)

Corporate insiders are more bullish today than they’ve been in four years.

Funding6 alternative ways to fund your business without an investor (Mashable)

Raising money is

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Comment by phil

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  1. phil

    Not unemployed but "not in the workforce".  

    That's 7M more jobs.  

    That's 26.1M more people – 14.1M of whom don't have jobs.  

    That's one easy way to look at it, probably the right way to look at it.  Then, of course, a job is not a job and the quality of jobs died in 2009 and never came back so those 142M people are not even keeping up with inflation.  

    Let's say just 5% behind – that's like losing 7M more jobs but we know CEO pay and executive pay (Wall St bonuses, for example) have boomed so looking at AVERAGE earnings is very misleading as it includes people in the top 1% who make 1,000 times more than average and have seen their incomes double – that pretty much accounts for ALL of the gains in the "average" incomes.  

    Very simply, how many people do you know now (not in the top 10%) who take more vacations or buy more stuff than they did 10 years ago?  

News You Can Use From Phil’s Stock World


Financial Markets and Economy

Tallying Terror's Economic Toll (Bloomberg)

How do you measure the impact of terrorism on economic growth?

Customers line up to get into a Shake Shack store in New York January 30, 2015. REUTERS/Lucas Jackson  Shake Shack shares fall as early investors get chance to cash out (Business Insider)

Burger chain Shake Shack Inc's <SHAK.N> shares fell as much as 11.3 percent on Thursday after the company said it would convert about 21 million of its Class B shares into Class A shares, allowing pre-IPO investors to cash out.

The investors, including top shareholder Leonard Green & Partners LP, Select Equity Group LP and founder Daniel Meyer, would be able to sell nearly all of their stakes.

Apple shines in otherwise dismal PC market (Market Watch)

The personal-computer industry is continuing a stark decline, according to two reports released Thursday, with one exception: Apple Inc.

International Data Corp. and Gartner tracked declines in PC shipments of 10.8% and 7.7% year-over-year in the third quarter, the analysis firms said in separate announcements Thursday afternoon. The drop in shipments occurred despite the launch of a new Microsoft Corp. MSFT, +1.39%  operating system, Windows 10, which IDC said “had a minimal impact on shipments in the quarter.”

Asian Futures Signal More Stock Gains to Come With Oil Near $50 (Bloomberg)

It’s the rally that just keeps on giving.

Energy stocks have driven global equity gains since the end of 3Q, while the dollar's been knocked from its perch

These 5 forces are holding stocks back right now (Business Insider)

After hitting record highs just a few months ago, stocks dropped off seriously in August and September. Despite fighting higher recently, they have yet to make back the losses.

According to a note from Credit Suisse there are 5 reasons they are being held back. They're a wide range of reasons, with sources from the markets themselves to the US economy to foreign concerns.

Goldman cuts target for volatile Chinese stocks (Market Watch)

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Blodget on Market History


Outside the Box: Blodget on Market History

By John Mauldin

I remember the first time I walked into Henry Blodget’s new startup, Business Insider, back in 2009. Twelve fresh-faced kids were crammed into a room about the size of my bedroom, pounding away on laptops, creating a new destination website. He took me over to a corner; we sat down in front of a few cameras; and he began shooting question after question at me, later turning the session into a series of interviews.

You walk into his office today and it’s still packed wall-to-wall with fresh-faced kids (the older I get the younger they look), but the offices are much larger, and it seemed to me last time that there had to be at least 150 people in them. But the interviews are still quick-paced, even if they’re now conducted in a special room, with upgraded equipment.

One of the things Business Insider is noted for is compelling headlines. They republish much of the work from Mauldin Economics, but they often come up with more interesting headlines for our content than we do. And they still produce a lot of original material as well.

This week’s Outside the Box is a brief note from Henry himself, with the snappy title “Market history is calling, and it’s saying stock performance will be crappy for another ~10 years.” Beyond the compelling headline is a look back at historical market performance and market cycles, with almost a dozen charts to illustrate Henry’s thesis. It’s a quick read, but investors should pay attention to his main premise: if you’re looking for returns that are north of zero, you’re going to have to be a better-than-average investor.

As an aside, I want to pass along my congratulations to Henry on the rather outsized offer (in the multiple nine figures) he has received from a German publisher for his business. I’ve always admired his determination and focus, and I enjoy watching another businessman prosper.

Now here’s a good one for you. I’m sitting in my dentist’s chair this morning, he’s checking on the laser-evisceration of my gums he performed last week, and he says, “You know, most older people have the opposite problem from you – they have too little in the

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Chart o’ the Day: The (non) Velocity of Money

Courtesy of Joshua M. Brown, The Reformed Broker

Why were the inflation hawks so wrong about quantitative easing? Why didn’t all the “money printing” lead to commodity prices skyrocketing?

One answer is that, while bank reserves were boosted, lending didn’t take off and there was no uptick in the velocity of money – the speed at which capital zooms through the economy and turns over. Absent velocity of money, QE could be looked at as either ineffective or actually causing a deflationary environment, where capital is hoarded and everyone is too petrified to risk it on productive endeavors.

Christopher Wood (CLSA) explains further in his new GREED & fear note:

To GREED & fear the best way to illustrate that quantitative easing is not working is the continuing decline in velocity and the resulting lack of a credit multiplier since the unorthodox monetary regime was introduced. In America, Japan and the Eurozone velocity has continued to decline since the financial crisis in 2008. Thus, US, Japan and Eurozone money velocity, measured as the nominal GDP to M2 ratio, has declined from 1.94x, 0.7x and 1.29x respectively in 1Q98 to 1.5x, 0.55x and 1.05x in 2Q15 (see Figure 3). Indeed, US money velocity is now at a six-decade low. This is why those who have predicted a surge in inflation in recent years caused by the Fed “printing money” have so far been proven wrong. For inflation, as defined by conventional economists like Bernanke in the narrow sense of consumer prices and the like, will not pick up unless the turnover of money increases. This is the problem with the narrow form of mechanical monetarism associated with the likes of American economist Milton Friedman.

Screen Shot 2015-10-08 at 11.32.34 AM

Wood goes on to make the point that QE is deflationary because it shrinks net interest margins for banks via depressing treasury bond yields. It also enriches the already wealthy via asset price inflation but they do not raise their consumption in response, because how much more shit can they possibly buy? Finally, it leads to a preference of share buybacks vs investment spending because the payback from financial engineering is so much easier and more immediate.


False Courage
CLSA – October 8th 2015

Financial things you can safely ignore

Courtesy of Joshua Brown, The Reformed Broker

Ben Carlson on “strategic apathy” – or being oblivious about certain topics for the sake of your sanity…

Here are some good examples of things you probably shouldn’t care about in your financial life:

  • Your relative portfolio performance against a meaningless index or benchmark.
  • How billionaire hedge fund managers are currently positioning their portfolios.
  • How much money your brother-in-law is making.
  • What Twitter traders are telling you about the markets.
  • The next fiscal cliff or government shutdown.
  • How many days in a row the market has risen or fallen lately.
  • Whether or not Herbalife is a Ponzi Scheme or the buy of a lifetime.
  • The brand new car or boat your neighbor just purchased (on credit).
  • That really great penny stock your co-worker told you they just bought because of an email tip they received.
  • How much your retirement portfolio has gone down (or up) in the past quarter.
  • How much money people claim to earn on Fan Duel every week.
  • People who call for a market crash every single year.
  • The couple you read about who lucked out and put their entire life savings into Apple stock a decade ago.

Read the whole post:

Apathy as a Strategy (A Wealth Of Common Sense)


Comment by phil

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  1. phil

    Here's the open OOP positions – up another $3,500 today!  

    STP at $362,500, LTP $730,500 so flat to yesterday at 3:35.  Butterfly 83.9% is down 0.3% as expected with the higher VIX.  So that's how I balance complex portfolios.  If we're bearish (and we are a bit) then I expect to make a little money in a sell-off and, if we don't make money – then I add some bearish positions until the balance is where I want it.   That's so much easier than trying to figure out your net deltas – just OBSERVE the action and make adjustments when necessary.  

    1,980/Craigs – The catalyst would be the end of the 30-year auction and doveish words from Kocherlakota – exactly what I said at 9:32.  That was the easiest money to be made all day (already over 1,985) but it only works if you stop second-guessing everything. 

    We had a premise, we go long at 1,980 (ish) ahead of 1pm because we KNOW it's strong support anyway and if we break under, then we take a quick loss.  As it stands, we barely got lower before blasting back up.  If you're going to play the futures, you have to take advantage of those opportunities – there's no time to play the 3rd act of Hamlet….

    "Thus conscience does make cowards of us all;

    And thus the native hue of resolution

    Is sicklied o’er with the pale cast of thought;

    And enterprises of great pith and moment,

    With this regard, their currents turn awry,

    And lose the name of action."

    HOV/Yodi – I have to learn to keep making these picks over and over again so I look smart when they finally turn up…  wink

    Of course we did just add it to the OOP.  



Phil's Favorites

Bernanke's Balderdash


Bernanke’s Balderdash

Courtesy of David Stockman

The US and world economies are drifting inexorably into the next recession owing to the deflationary collapse of commodities, capital spending and world trade. These are the inevitable “morning after” consequence of the 20-year global credit binge which has now reached its apogee.

The apparent global boom during that period was actually a central bank driven excursion into the false economics of household borrowing to inflate consumption in the DM economies; and frenzied, uneconomic investing to inflate GDP in China and the EM.

The common denominator was falsification of financial prices. By destroying honest price discovery...

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Market News

News You Can Use From Phil's Stock World


Financial Markets and Economy

Bond Funds Have Been Borrowing to Boost Returns (Bloomberg)

For more than two decade, Bill Gross did the seemingly impossible, according to Bill Gross.

Drug that rose 5,000% hasn't come down in price (CNN)

Remember the drug used by cancer and AIDS patients that skyrocketed from $13.50 to $750 a pill? Well, the price has yet to come back to earth.

The company still has not cut the price below $750 even thoug...

more from Paul

Zero Hedge

The Deep State: Source Of All Negativity

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Doug Casey via,

I’d like to address some aspects of the Greater Depression in this essay.

I’m here to tell you that the inevitable became reality in 2008. We’ve had an interlude over the last few years financed by trillions of new currency units.

However, the economic clock on the wall is reading the same time as it was in 2007, and the Black Horsemen of your worst financial nightmares are about to again crash through the doors and end the party. And this time, they won’t be riding children’s ponies, but armored Percherons.


more from Tyler

Kimble Charting Solutions

Free Premium Trail Offer & Free Webinar Viewing Available Now!

Courtesy of Chris Kimble.


Ryan Detrick and I produced a webinar this week, covering some new indicators we created, which we shared publicly for the first time.

We also shared two new Buy & Hold indicators we created, as well as two short-term trades, that look goo...

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Chart School

Bulls Keep Buying Into The Close

Courtesy of Declan.

Good stuff for bulls as resistance levels get ticked off on the advance. There breathing room for many indices and a chance for consolidation. Nit pickers could point to light volume, but it would be hard for buyers to be coming in here given the sequence of gains.

The Nasdaq 100 still remains tagged to resistance. Can it break tomorrow or will sellers make an appearance. All I know is yet another short trade of mine is stopped out. I should add, I haven't touched my investment account. I would be looking to buy if I had the funds available.

The S&P made a decisive push past its 50-day MA. Next resistance is up at 2,044. Tech...

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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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Whitney Tilson On LL, EXACT, And Martin Shkreli


Whitney Tilson On LL, EXACT, And Martin Shkreli

Courtesy of Value Walk

1) The shares of one of my largest short positions (~3%), Exact Sciences, crashed by more than 46% yesterday. Below is the article I published this morning on SeekingAlpha, explaining why I think it’s still a great short and thus shorted more yesterday. Here’s a summary:

  • The U.S. Preventative Services Task Force’s Colorectal Cancer Screening Draft Recommendation issued yesterday is devastating for Exact Sciences’ only product, Cologuard.
  • I think this is the beginning of the end for the company.
  • My price target for the stock a year from now is $3, so I shorted more yes...

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Sector Detector: Searching for solid support in the face of global headwinds

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

Courtesy of Sabrient Systems and Gradient Analytics

Uncertainty about the health of the global economy led investors to flee U.S. equities during Q3, primarily driven by worries about China's growth prospects and the Federal Reserve’s decision to not raise rates. Sure, there are plenty of real and perceived headwinds, but on balance it seems that a recession here at home is not in the cards. And when you consider sentiment and the technical picture, it appears that a continuation of Friday’s bounce is in store. The question remains as to whether the seasonally strong Q4 will be able to propel the bulls through levels of resistance that have built up.

In this weekly update, I give my view o...

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Swing trading portfolio - week of October 5th, 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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Baxter's Spinoff

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

Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).

The Baxalta Spinoff

By Ilene with Trevor of Lowenthal Capital Partners and Paul Price

In its recent filing with the SEC, Baxter provides:

“This information statement is being ...

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Mapping The Market

An update on oil proxies

Courtesy of Jean-Luc Saillard

Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself. 


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Watch the Phil Davis Special on Money Talk on BNN TV!

Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene


The replay is now available on BNN's website. For the three part series, click on the links below. 

Part 1 is here (discussing the macro outlook for the markets) Part 2 is here. (discussing our main trading strategies) Part 3 is here. (reviewing our pick of th...

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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 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.

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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