On the President’s first day in office on January 21, 2009, he issued an Open Government memo promising the American people a new era of transparency. On March 19, 2009, under the President’s orders, the Attorney General’s office issued detailed guidelines on how Federal agencies were to respond going forward to Freedom of Information Act (FOIA) requests. The guidelines instructed the agencies as follows:
“The key frame of reference for this new mind set is the purpose behind the FOIA. The statute is designed to open agency activity to the light of day. As the Supreme Court has declared: ‘FOIA is often explained as a means for citizens to know what their Government is up to.’ NARA v. Favish, 541 U.S. 157, 171 (2004) (quoting U.S. Dep’t of Justice v. Reporters Comm. for Freedom of the Press, 489 U.S. 749, 773 (1989)…The President’s FOIA Memoranda directly links transparency with accountability which, in turn, is a requirement of a democracy. The President recognized the FOIA as ‘the most prominent expression of a profound national commitment to ensuring open Government.’ Agency personnel, therefore, should keep the purpose of the FOIA — ensuring an open Government — foremost in their mind.”
It pains me to inform you, Mr. President, but the Treasury Department, Board of Governors of the Federal Reserve, and Securities and Exchange Commission (the trio that has been variously distracted minting trillions in currency, trading cash for trash with Wall Street, surfing for porn, or mishandling multiple voluminous tips on Bernie Madoff’s Ponzi scheme) have misplaced your memo or, as many suspect, take their marching orders not from you but from Wall Street — perhaps because they perceive that this is where you take your orders too.
On October 6, 2010, I filed three FOIA requests with the Securities and Exchange Commission (SEC). I had come by information that the official government report on the stock market’s “Flash Crash” of May 6, 2010 was materially wrong and I wanted to buttress my investigative report to the public with documents the SEC had obtained or compiled in conducting its investigation.
I followed the SEC’s FOIA instructions and emailed the requests to firstname.lastname@example.org as instructed by the web site, asking for a small amount of very…
In early March I turned quite bullish for the first time in 2009. My reasoning behind the bullishness was relatively simple. The market had overshot the mean to the downside and psychology was far too negative. This created a market that was like a loaded spring. All it needed was a catalyst. That catalyst came in the form of the M2M rumors. In other words, the government was going to directly intervene in the market and stop the bleeding. What resulted over the ensuing months was even larger than I ever could have expected.
At the end of March I began referring to the rally as the “government run rally”. Although the actual underlying fundamentals were not improving, the government had created a series of events and catalysts that forced the shorts out of positions and changed the psychology of the market:
The last of these well crafted maneuvers were the capital raises and the stress tests. This series of events created a foundation for a market bottom and helped form the most important portion of the current rally in stocks. It would sound conspiratorial if it weren’t entirely true. What has ensued since has confounded even the most veteran of traders. The market has continued higher in a nearly straight line.
There is no doubt that the economy has rebounded sharply from the days of ISM 35 and GDP -6%. The overshoot to the downside was extreme to say the least, but what is less clear is why the market has rallied an astounding 60% off its bottom and effectively priced in 20%+ earnings growth and 4% GDP going forward when the real underlying problems that caused this entire mess are still apparent. We have simply implemented the failed Bank of Japan policies of the 90’s combined with the failed bank policies of Maestro Greenspan – crank up the printing press, turn on the liquidity spigot, implement quantitative easing and let the banks earn their way out of their problems. It sounds great in theory, but Greenspan’s policies failed miserably as did the Bank of Japan’s. Neither approach proactively attacked the root of the problems. The results speak for themselves.
Mr. Bernanke has declared an end to the recession, but we continue to…
As Zero Hedge reported previously, Florida bank BankUnited was put on dodecatuple secret probation under a "prompt corrective action directive" on April 18th to find a buyer within 20 days or face imminent shutdown. 20 days came and went, and the bank is still standing "strong," unshutdown, and unpurchased. At first glance it would seem ultimatums by the Office of Thrift Supervision carry markedly less weight than those conveyed by the "three stooges" of the U.S. Treasury Dept, the Fed and the FDIC.
A Dow Jones article sheds some light on the lack of action in this soon to be receivership. Allegedly the three likely emerging bidders for BKUNA include some of the most usual suspects imaginable: one is a consortium of Toronto Dominion Bank and… Goldman Sachs, in which the split would be: branches and deposits go to TD, while GS gets to keep all the juicy distressed assets, that subsequently will experience a miraculous short squeeze and be sold at a "bargain" to investors at just over par (the last bit is some superfluous musing on the part of this author).
The second presumed bidder – no surprise there – it is perma-acquisitive JC Flowers. As to the latter it is unclear whether it is more shocking that the former PE legend has not learned his lesson with investing in "value" financial propositions, or that he still has any capital left at all to invest in the first place.
And the last group is the Keiser Soze of the lot – a triumvirate of Wilbur Ross, Blackstone and NY kickback scandal tainted Carlyle Group.
As the new bid deadline has been extended until next Tuesday, although it seems like that day will also come and go with no fireworks. Another propagating rumor is that neither of the bidders is inclined to see the economic green shoots or mustard seeds, and would rather have the bank be put into receivership first (read: GSE woodshedding approach) before any formal action is taken. While this is bad news for any existing equity holders in the "not too big to fail" Florida bank, receivership for the roughly $14 billion company will be fabulous news for any of the three potential bidders who, in a WaMuesque, FDIC-orchestrated…
Judicial Watch, which lucked out majorly on a FOIA request to the Treasury, has received several hundred pages of stunning revelations, among which are that Hank Paulson essentially used the same tactics that he used on Ken Lewis on a group of nine bankers at the October 13 meeting which apportioned government investments to the various "critical" banking institutions. The major disclosure was captured in a memo called CEO Talking Points, which delineates the continuous use of strongarming tactics by not just Paulson, but by Tim Geithner, and Sheila Bair, who were also present at the meetings. According to one of the Talking Points:
“If a capital infusion is not appealing, you should be aware that your regulator will require it in any circumstance. We don’t believe it is tenable to opt out because doing so would leave you vulnerable and exposed.”
Among the banking CEOs who were forced into a pre-envisioned arrangement were:
Ken Lewis (BofA)
Vik Pandit (Citi)
Lloyd Blankfein (GS)
Jamie Dimon (JPM)
John Thain (ML)
Robert Kelley (BONY)
Ronald Logue (SS)
John Mack (MS)
Richard Kovacevich (WFC)
Among the key disclosures obtained by Judicial Watch are:
"CEO Talking Points" used by former Treasury Secretary Hank Paulson confirming that the nine bank CEOs present at the October 13 meeting had no choice but to accede to the government’s demands for equity stakes and the resulting government control. The talking points emphasize that "if a capital infusion is not appealing, you should be aware your regulator will require it in any circumstance." Suggested edits of the "talking points" by Tim Geithner, then-New York Fed President, were withheld by the Obama Treasury Department.
Email documenting that, on the very day of the meeting, the Chief of Staff to the Treasury Secretary and other top Treasury staff did not know the names of any of the banks that would be in attendance.
Email showing Treasury officials wanted to use the Secret Service to help keep the press away from the CEOs arriving at the meeting.
One of the assumptions about technical analysis' efficacy is that history tends to repeat itself and, based on historical examples, the future can be anticipated with greater clarity than just hopeful guessing (a skill bulls exhibit with particular panache).
I tripped across an interesting example of this far afield from the world of finances. It has more to do with geopolitics. Check out this quote from a histor...
NEW YORK – The problems with China’s economic-growth pattern have become well known in recent years, with the Chinese stock-market’s recent free-fall bringing them into sharper focus. But discussions of the Chinese economy’s imbalances and vulnerabilities tend to neglect some of the more positive elements of its structural evolution, particularly the government’s track record of prompt corrective intervention,...
readtheticker.com is primarily a Richard Wyckoff logic site, however through our research into Wyckoff logic the three indicators below make us very lazy in applying Richard Wyckoff logic.Why? Because if these indicators look handsome together then it most likely the Wyckoff logic is working very well.
These three indicators are NOT a trading system, but they do help with finding excellent well support accumulated stocks that show Mr Market is supporting them. Of course when indicators look ugly they will show stocks in a breakdown, thus less support by Mr Market.
If the large market plays are accumulating the stock then they will control the range of BID and ASK and not let th...
This chart looks at the Thompson/Reuters Commodity Index on a monthly basis for the past 50 years
The index took off in the early 1970’s and rallied over 200% in a little over a decade at (1). Then it created a potential double top. What followed at (2)? An unwinding of the rally that lasted nearly 20-years, taking it to the bottom of its rising channel.
In the early 2000’s, the index took off again, gaining over 250% in a decades time at (3) and the rallied looks to have ended in 2011, as it was hitting the top of this long-term rising channel.
Since hitting the top of the channel the index has been pretty soft,...
As oil prices tanked, hedge-fund managers and other large speculators increased bullish bets on Treasury securities to the most in two years, even as the Federal Reserve moves closer to raising interest rates.
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 offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the top-ranked sectors.
Corporate earnings reports have been mixed at best, interspersed with the occasional spectacular report -- primarily from mega-caps like Google (GOOGL), Facebook (FB), or Amazon (AMZN). Some of the bul...
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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).
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.
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...
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 email@example.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.
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