From last Friday on BNN, Charles Biderman of TrimTabs talks about the odd goings on in U.S. equity markets last year where low volume and the lack of identifiable buyers have caused more than a few people to suspect that things are not as they appear.
Biderman says that in after-hours S&P500 futures markets, as little as $5 to $10 billion a month in buying could be responsible for a large part of last year’s gains and, when you think about it, $5 to $10 billion a month for the U.S. government in 2009 was "chump change".
TrimTabs CEO Charles Biderman continued his crusade against the government’s official stats and involvement in financial markets in an interview Friday with BNN. In it, he argues that the private demand — from companies, investors, hedge funds, and pensions — just isn’t there.
Is the Fed manipulating the stock market? TrimTabs CEO Charles Biderman seems to think so, and he makes a strong case for his theory in an article at zerohedge.com.
Biderman focuses his attention on the mystery surrounding the stock market’s 9-month rally and asks, "Where is the money coming from?" After all, the market cap has increased by more than $6 trillion since March 9. That amount of money should be fairly easy to trace; right?
Biderman: "The most positive economic development in 2009 was the stock market rally. (But) We cannot identify the source of the new money that pushed stock prices up so far so fast. For the most part, the money did not from the traditional players that provided money in the past."
Huh? So, this vast infusion of liquidity--which helped the banks to avoid painful deleveraging--did not come from the usual suspects?
That’s right. According to Biderman, the money did not come from (a) companies ("which were a huge net seller") (b) retail investor funds, (c) retail investors, (d) foreign investors, or (e) pension funds.
What about the hedge funds?
Biderman: "We have no way to track in real time what hedge funds do, and they may well have shifted some assets into U.S. equities. But we doubt their buying power was enormous because they posted an outflow of $12 billion from April through November."
Okay; so we’re back to Square One. Where did the money come from?
Biderman again: "As far as we know, it is not illegal for the Federal Reserve or the U.S. Treasury to buy S&P 500 futures. Moreover, several officials have suggested the government should support stock prices. For example, former Fed board member Robert Heller opined in the Wall Street Journal in 1989, “Instead of flooding the entire economy with liquidity, and thereby increasing the danger of inflation, the Fed could support the stock market directly by buying market averages in the futures market, thereby stabilizing the market as a whole.” In a Financial Times article in 2002, an unidentified Fed official was quoted as acknowledging that policymakers had considered buying U.S. equities directly, not just futures. The official mentioned that the Fed could “theoretically buy anything to pump money into the system.”
Now that Athens' Syntagma square has been put on indefinite hiatus since everyone has finally figured out the game between Greece and Athens (Greece grudgingly promises to reform but doesn't, at the same time Troika grudgingly threatens to cut off funding for Greece unless reforms are implemented but doesn't... even as the fate of the people gets worse), a new square has emerged as the focal point in the fight for (and against) Europe - Kiev's Independence Square.
However, unlike in Syntagma square where the people were largely against Europe due to its demands for Greek reforms, in the Ukraine, the people who amass at the country's biggest square are instead demanding that th...
Celldex Therapeutics, Inc. (Nasdaq: CLDX) today announced that it is offering 6.5 million shares of its common stock in a proposed underwritten public offering. The offering is subject to market conditions and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. The shares will be issued pursuant to a prospectus supplement to be filed as part of a shelf registration statement filed with the Securities and Exchange Commission (SEC) on Form S-3.
Jefferies LLC and Leerink Swann LLC are acting as the joint book-running managers and underwriters for the proposed offering.
A shelf registration statement relating to the shares was filed with the SEC and is effective. A preliminary prospectus suppleme...
Transcript - Godfrey Bloom - Member of European Parliament Mr. President, I am minded to quote the great American philosopher Murray Rothbard here. The state is an institution of theft. Tax is just about a system of politicians and bureaucrats who steal money from their citizens to squander in the most disgraceful manner. This place is no exception.
Fascinatingly, and I really don't know how you manage to keep a straight face when you are talking about tax evasion. The whole commission and the commission bureaucracy avoid their taxes. You don't pay taxes like citizens pa...
BIG – Big Lots, Inc. – Shares in the largest U.S. broadline closeout retailer are down big today, with the stock dropping nearly 14% to $32.00, the lowest level since August 23rd., after Big Lots posted a wider than expected third-quarter loss of $0.18 a share on revenue that came in below the average analyst estimate for the metric.
December expiry options changing hands on Big Lots in the early going today indicate some traders are positioning for the price of the underlying to sell down further during the next couple of weeks. Traders appear to have purc...
As the charts last week indicated might happen, the S&P 500 has fallen four straight days and failed to hold its breakout above 1800 while the Dow Jones Industrials lost 16,000. Only the NASDAQ is still holding on to its breakout above 4000. Although the Basic Materials sector was the leader on Wednesday, the Technology sector was strong, as well, and in fact Tech stocks have been the strongest over the past week and the past month.
As markets finally show a willingness to pullback somewhat from their torrid pace, the bears are trotting out every naysayer they can lay their hands on to scare investors away, including smart folks like Carl Icahn, who is “very cautious,” and Nobel Prize winner Robert Shiller and his stock market “bubble” assertions. Sure, valuations are high on a historic...
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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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