I didn’t see any dip, what dip are you talkin’ about? Oil spill? I don’t see no oil spilling, do you? Goldman did what? They’re regulating who? Fuhgeddaboudit! That’s right markets, move along, nothing to see here. In fact, exactly as we predicted since the market first started dropping – it’s all just noise in between options expiration days, a way to traumatize the retail suckers who run in and out of positions under the direction of their chosen media messiahs. Clearly most market analysis is nothing more than "a tale told by an idiot, full of sound and fury, signifying nothing."
If you think this chart looks a little like someone is laughing at you – you are not being paraniod. This smiley face pattern is bought to you by the chart painters at GS and the rest of the Gang of 12 and their media lapdogs who push and pull the markets around on a daily basis. I asked back on the 6th, when I very accurately called for a "Turnaround Tuesday – Will CNBC Apologize to America?" as I pointed out the ridiculous degree of negativity that had contributed to the mini crash, which I had predicted on Monday the 21st, when my 9:40 Alert to Members said:
I have to go with my gut initially and stick to our plan, which is roll up the USO and DIA short plays (rolling the open puts to higher strikes) and, if the Dow holds 10,500 and USO holds $36 ($80 oil), we’ll have to sell June puts and roll our puts to a longer month – hoping for a post-holiday sell-off.
Upside levels are 50 dmas at: Dow 10,600, S&P 1,140, Nasdaq 2,350, NYSE 7,130, Russell 683, SOX 366 (already over), Transports 2,130, Oil $78 and Gold $1,200 (already over). Anything less than that is just a move to the top of our range and then we can expect a nice pullback by Wednesday.
Obviously, it’s a great time to add some disaster hedges, I now like selling TZA $6 puts for .45 and buying the TZA $6/8 bull call spread for .50 and that’s net .05 on the $2 spread so even if you have to margin $3,000 for 10 short TZA puts, the $450 you collect plus another $50 buys you $2,000 worth of downside insurance.
I like those DIA June
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Finally some good news in the U.S. jobs market?
The Bureau of Labor Statistics (BLS) reported Friday that, in November, 203,000 jobs were added to the U.S. jobs market. As a result, the unemployment rate went down to 7.0% from 7.3% in October. In addition to this, the BLS also revised the job numbers from October and September, saying 20,000 more jobs were created than previously reported. (Source: Bureau of Labor Statistics, December 6, 2013.)
Yes, the jobs market report for November is a step in the right direction. And, while I'm certain the politicians and the mainstream will have a field day with this news, the underlying sta...
And so it is done (as we detailed here)... and due to be put in place as of April1st 2014 (rather ironically). The 100-plus-pages of rules and regulations prohibit two activities of banking entities: (i) engaging in proprietary trading; and (ii) owning, sponsoring, or having certain relationships with a hedge fund or private equity fund. But the kicker...
requires banking entities to establish an internal compliance program designed to help ensure and monitor compliance with the prohibitions and restrictions of the statute and the final rule.
Talisman Energy Inc. (Talisman) (NYSE: TLM) today announced that two of its affiliates have reached agreement to sell their approximately 12% equity interest in the Ocensa Pipeline in Colombia to an investment group led by Advent International for a total cash consideration of approximately $595 million. All values in this press release are in US$ unless stated otherwise.
"In March, I set a $2-3 billion, 18-month disposition target for Talisman," said Hal Kvisle, President and CEO of Talisman Energy. "In November, we announced the sale of the majority of our Montney position for CDN$1.5 billion, which when combined with some small Canadian assets and our equity interest in the Ocensa pipeline, brings our sale proceeds to approximately $2.2 bil...
The President’s speech yesterday on inequality avoided the “R” word. No politician wants to mention “redistribution” because it conjures up images of worthy “makers” forced to hand over hard-earned income to undeserving “takers.”
But as low-wage work proliferates in America, so-called takers are working as hard if not harder than anyone else, and often at more than one job.
Yet they’re still not making it because the twin forces of globalization and technological change have reduced their bargaining power and undermined their economic standing — while bestowing ever greater benefits on a comparative few with the right education and connections (and whose parents are often best able to secure these advantages for them).
Today, with very little market moving news, the S&P 500 closed at 1808.4, yet another new closing daily high. The index did touch the 1811 area on at least three distinctly different time slots creating a new resistance level. But after last week’s bevy of positive economic surprises, the sharp gain of 1.1% on Friday, leaving the index just a tiny point away from its ninth consecutive up week, we can’t be too quick to suggest today was a topping rally. For one thing, volume was quite low as traders seemed to be trying to sort out the odds on the earliest date of Fed tapering. Estimates range from this month to March and even later. But it’s going to happen…so why so much emphasis on when? Perhaps protection of end-of-the-year profits in so many fund managers portfolios? ...
OSIS – OSI Systems, Inc. – Options volume on OSI Systems today is well above the average daily level for the stock, with upwards of 7,500 contracts in play as of midday in New York versus average daily volume of 57 contracts. The surge in options trading on OSI Systems coincides with a 40% decline in the price of the underlying shares to $39.00 today, the lowest level since October of 2011. The company provided an update on a recent $60 million order cancellation by the Transportation Security Administration (TSA). Call options are more active than puts, with the call/put ratio hovering near 2.0 as of 12:40 p.m. EST. Some traders appear to be selling out of the money December and January 2014 expiry calls, while others step in to buy the contracts perhaps in the expectation that shares rebound in the...
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This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).
We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options.
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These rallies are becoming familiar. In early July we saw a streak of 12 of 13 sessions in a row up, early September 11 of 12, and mid October 11 of 13 (current streak). It is a bit uncanny the similarities and how the escalator goes straight up in vertical ascent as we see indexes come out of mini corrections during QE. So we are about at the same stage where the last two began to tire, so it will be interesting if this is similar or if the current consensus of the market that there is nothing to worry about until next year as the Fed and D.C. are both off the table and this 3% annual growth rate in earnings we are now seeing in the S...
Welcome to the fouth update of the IRA Virtual Portfolio. First I am going to summarize the current state of the Portfolio then I will get into all the activity we had during September expiration.
Profit and Loss – Net of closed positions the portfolio is up a total of $769
Market Commentary – Last expiration I said, "I would like to put a total of $20,000 to work by the end of SEP expiration. If the VIX pops up to around 20 I plan to put about $50,000 total to work." The market didn't quite reach the goal but I did manage to deploy $15,000 of buying power. I still feel the market is too high and expect a correction during October. If the vix pops up to around 20 I still plan to put about $50,000 to work. If a correction doesn't happen I still plan to have a total of $25,000 in buying power put to work by October expiration. Now on to the act...
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Come and get it! Read all about it! Biotechs, biotechs and more biotechs to buy buy buy for your portfolio! To date, almost 30 biotech companies have hit the market. Most of the time, there are fewer than 10-12!
For the last five years, biotechs have had issues obtaining offer prices above expectations. In 2013, that trend looks to be broken. According to BiotechNow, the offer prices are 4% above expectations! In addition, biotechs are going public with little more than a wing and a prayer (pre-clinical or Phase 1 data only). Really? What this means is that the drug or technology looks good in mice, rats, or dogs, etc, but there is no smidgen of evidence that it will work in humans. That's what is called an appitite for RISK!
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