What else is new in this market? As you can see from Dave Fry's SPY chart, the pattern is holding up of high-volume (relatively) sell-offs following low-volume run-ups. This is how the Institutional Investors manipulate the markets to dump unwanted shares on retail investors. I've been telling you all week how it works and now we can see it in action.
Of course, it's nice to have this knowledge ahead of time – that's the edge we strive to give to our Members at Philstockworld. Even if you are just reading us for free and don't have access to our Live Member Chat Room, you would have done very well to follow our advice on Tuesday and go with the DIA puts at $166.80 and the DXD longs at $26.20 – it was right there on top of the morning post (which you can have mailed to you every day, pre-market by SUBSCRIBING HERE)! In our Member Chat, the previous day, our trade ideas were:
A 5% pullback on DIA is 8.3 points (830 Dow points), back to $158.40 from here. The June $161 puts are .95 so, if you have $100K to protect against a 10% drop, you can buy $5K worth of the June $161 puts and a 5% drop pays you back $8,000 and a 10% drop to $150 (15,000) would net you $11 per contract so a 10x return is $55,000 back – that's overhedged actually!
On DXD, the July $25/28 spread is $1.10 and is $1.25 in the money so you get all the upside on DXD up to a 140% profit on a very small move down in the Dow. We already have July $28 calls in the STP and it's a little too soon to roll but we will.
On a new trade – you can just get out if the S&P holds 1,900 for more than a day – that's not too far from here.
Once again Anthony Watts, the namesake and force behind WattsUpWithThat.com has come through with an excellent posting on the topic of manmade global warming, this time citing the letter of resignation written by Harold Lewis, Emeritus Professor of Physics, University of California, Santa Barbara, to the head of the American Physical Society over that organization’s unscientific approach to the issue of manmade global warming.
However, for the time-pressed among you, I will share just a couple of excerpts.
It is of course, the global warming scam, with the (literally) trillions of dollars driving it, that has corrupted so many scientists, and has carried APS before it like a rogue wave. It is the greatest and most successful pseudoscientific fraud I have seen in my long life as a physicist. Anyone who has the faintest doubt that this is so should force himself to read the ClimateGate documents, which lay it bare. (Montford’s book organizes the facts very well.) I don’t believe that any real physicist, nay scientist, can read that stuff without revulsion. I would almost make that revulsion a definition of the word scientist.
I do feel the need to add one note, and this is conjecture, since it is always risky to discuss other people’s motives. This scheming at APS HQ is so bizarre that there cannot be a simple explanation for it. Some have held that the physicists of today are not as smart as they used to be, but I don’t think that is an issue. I think it is the money, exactly what Eisenhower warned about a half-century ago. There are indeed trillions of dollars involved, to say nothing of the fame and glory (and frequent trips to exotic islands) that go with being a member of the club. Your own Physics Department (of which you are chairman) would lose millions a year if the global warming bubble burst. When Penn State absolved Mike Mann of wrongdoing, and the University of East Anglia did the same for Phil Jones, they cannot have been unaware of the financial penalty for doing otherwise. As the old saying goes, you don’t have to be a weatherman to know which way the wind is blowing. Since
There’s a question oft-posed by the proponents of global warming… or of “climate change,” as the new term of art has it, thus allowing warmists to claim both the snowstorm now blanketing America’s East Coast, as well as the melting of that snow, as evidence for their theory.
“To what end?” the warmists ask the skeptics. Or, in the lingua franca of conspiracy theorists everywhere: “Cui bono, my friend, cui bono?”
Well, lots of people are benefiting from the practical implications of this theory. There’Nobel Laureate Al Gore for one, who is on track to become the first green billionaire:
Then, at the UN there is the organization that shared Gore’s Nobel Prize, the IPCC, and its controversial director Dr. Rajendra Pachauri, a railway engineer with no back ground in climate science who lives what has been described as a lavish lifestyle in Delhi. Publicly he oversaw a report issued with the imprimatur of the UN that the Himalayan glaciers that feed India’s rivers will have melted by 2035. Privately he has been acting as a director or advisor to a score of companies, including Pegasus Capital Advisors, GlorOil, Toyota, and Deutsche Bank, as revealed by Christopher Booker of the Telegraphhere and here.
But hard-core warmists, intent on skepticizing the skeptics, invariably ask: “why would the media go along with this poppycock?”
Yes, why are the media so invested in the warming notion, given the countervailing evidence, the fact that the last climate theory (the global cooling scare of the 1970s) was so quickly disproven, and that it is self-evident that CO2, that most persecuted of molecules, is essential for life… for plant life. (When an elephant sighs, a tree smiles.)
Well, the BBC, a prime proponents of warming theory, or AGW, has heavily invested its pension fund in the theory, and thus have had a major non-Scientific reason for their bias. As revealed this weekend in The Express:
The corporation is under investigation after being inundated with complaints that its editorial coverage of climate change is biased in favour of those who say it is a man-made phenomenon. The £8billion pension fund is likely to come under close scrutiny over its commitment to promote a low-carbon economy while
Across the South, Midwest, and Eastern seaboard [of the United States], a stubborn “arctic outbreak," tacked onto an already cold return to work for many Americans, augurs what meteorologist at AccuWeather.com are calling “the coldest winter in many people’s memory.”
The disappointment with Obama is reaching new heights. He ran for office making certain representations to the American people; and he proceeds to ignore his own pre-election promises, as if they were meaningless. Here’s a video showing the eight times Obama said health care negotiations would be televised on C-SPAN. Below is an assessment by Timothy D. Naegele (the interview here) of Obama’s performance thus far. - Ilene
Just days after announcing the surge of 30,000 more U.S. troops in his Afghan war, Barack Obama was in Oslo to accept the Nobel Peace Prize that was announced shortly after he became president—before he had done anything. Next, he was in Copenhagen accepting a deal without any teeth to address “global warming,” in the midst of a blizzard that dumped snow on the Danish capital, suggesting to most people that the issue is a “hoax.”
Straddling his back-to-back trips to Europe, he was in Washington, D.C.—where he was met by a blizzard on his return from Denmark—pushing for the enactment of ObamaCare that Americans oppose. The legislation is so reckless that it had to be rammed through the U.S. Senate on a partisan vote. Also, the Democrats’ leadership hid the exact nature of the health care bill from senators, who surely had a right to know what they were voting for.
Then the president jetted off to spend the holidays in Hawaii, having irresponsibly saddled the people with ObamaCare—after the legislation clears a joint Senate-House conference committee and he signs some version of it into law—which is reprehensible, certainly with respect to its impact on Medicare patients. His recent travels alone create a carbon footprint globally that boggles the mind, especially when so many Americans are suffering from an economic meltdown that shows few real signs of abating. Indeed, 49 States have lost jobs since his so-called “Stimulus Package” was enacted.
Hispopularity poll numbers have been plummeting, but he is seemingly oblivious to the will of the people and determined to remake the United States and the world in his own image. Never mind that his life was shaped by years growing up in Hawaii and Indonesia, he
The fall out from climate gate is much deeper and broader than hoped for by the global warming network--the web of corporate interests, academics and bureaucrats exposed as rigging the climate change debate. But it is also more fun than anyone anticipated.
Regardless of where you fall on the climate debate, this jib-jab style video is fun.
He just says it under his breath, right as he’s going off the air, but at the 2:36 mark of this video, you can hear University of East Anglia professor Andrew Watson saying "what an a**hole" in reference to a critic.
Yes, the embattled scientests just keep digging. (via CBS News and Drudge)
Many were from religious zealots of global warming theory, and as you might surmise they were not printable.
A few common sense comments came my way suggesting that the hackers or insiders (I believe the latter) did not prove global warming was a scam, only that that there is proof scammers are involved in global warming.
I have to admit that is true. Apologies offered. That admission aside, even more damning data has surfaced in regards to data manipulation.
It seems Dr. Tim Ball was aware of the data manipulation but could not prove it. Here is a partial transcript but I assure you the video is worth listening to entirely.
"[The Emails] confirm suspicions that I have had in 30 years of working in climate science that I saw the hijacking of climate science particularly by computer modelers and then by a small group of people associated with the intergovernmental panel on climate change. The difficulty was that even though I sensed there was these thing going on, proving it is extremely difficult. But now with the exposure of these public files it is not only a smoking gun, it’s a battery of machine guns. … On A global scale it’s frightening. This group of people not only controlled the Hadley Center which controls the global data on temperatures, so that the global temperature record is in their hands, they also control the IPCC. … The IPCC is the basis in all governments for the Kyoto Protocol, the Copenhagen Accord, and so on. ….. The problem they had is they kept saying the 20th century and the latter part of it is the warmest ever. And of course skeptics like myself [and several other names] were saying it was warmer 1000 years ago when the Vikings were in Iceland and Greenland and that’s
The Really Big News™ is actually that there is no really big news. Much is being made of the recent hack of the Hadley Climatic Research Center (the "CRU") whereby over a thousand emails along with documents as well as data and code were lifted and published to an FTP site before being linked to by "The Air Vent" blog and then… the world.
The leak appears to show climate scientists shaping results, strategizing on how best to conceal data and analysis from the public, planning public relations to get their message out irrespective of the most recent data setbacks, debating the best way to influence the "man on the street," discussing means to deal with critics via the press and otherwise, and reacting with barely contained glee to the news of an opponent’s untimely death. While the general consensus is that the most damaging emails appear to reference the now semi-famous "hockey graph" illustration that has been a favorite of the United Nations (and everyone else pushing radical climate change policy) for a decade, I think something much more insidious (and actually quite ordinary) emerges from between the many subject lines. Rank corruption.
Shock and surprise at the conduct of particular individuals within the CRU seem the order of the day. I’m not quite sure why. If, indeed, the disclosures are genuine (and it certainly appears on first blush that they are) how is it news that "scientists" embroiled in what long ago ceased to be scientific research and now amounts to a political campaign would cut corners, sabotage critics, conceal or even destroy data and analysis, massage results and graphics and otherwise act exactly like politicians, particularly where their careers, the body of their life’s work and their continuing income stream were at risk?
It isn’t of course. They are politicians.
The surprise should be that something like this wasn’t revealed earlier. (Well it was, but no one seems to count the glaring errors in Al Gore’s public presentation as relevant for some reason- polish always
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 firstname.lastname@example.org 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.
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.
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Note from dshort: I've updated the accompanying charts with the latest Personal Consumption Expenditures price index from the Bureau of Economic Analysis. The annualized rate of change is calculated to two decimal places for more precision in the side-by-side comparison with the Consumer Price Index.
The BEA's Personal Consumption Expenditures Chain-type Price Index for July shows core inflation below the Federal Reserve's 2% long-term target at 1.47%, but for the past four months this indicator has hovered above its narrow range of the previous 12 months. The latest Core Consumer Price Index release, also data through July, is higher at 1.86%. The Fed is on record as using PCE as its primary inflation gauge.
Buffalo Wild Wings Inc. (Ticker: BWLD) shares are in positive territory in early-afternoon trading on Thursday, reversing earlier losses to stand up 0.50% on the session at $148.50 as of 12:15 pm ET. Options volume on the restaurant chain is running approximately three times the daily average level due to heavy put activity in the October expiry contracts. It looks like one or more traders are buying the Oct 140/145 put spread at a net premium of roughly $1.45 per contract. As of the time of this writing, the spread has traded approximately 3,000 times against very little open interest at either striking price. The put spread may be a hedge to protect a long stock position against a roughly 6% pullback in the price of the underlying through October expiration, or an outright bearish play anticipating a dip in BWLD shares in the next couple of months. The spread makes money at expiration if shares in BWLD decline 3.3% from the current price of $148.50 to breach the breakeven point...
Gradient Senior Analyst Nicholas Yee reports on six companies that are using a variety of techniques to shift pretax profits to lower-tax areas. Featured in this USA Today, article, the companies include CELG, ALTR, VMW, NVDA, LRCX, and SNPS.
Mt Gox may be long gone in the annals of bankruptcy, but its founder refuses to go gentle into that insolvent night. And, as CoinDesk reports, the disgraced former CEO of the one-time premier bitcoin trading platform has decided to give it a second try by launching new web hosting service called Forever.net and is registered under both Karpeles’ name and that of Tibanne, the parent company of Mt Gox.
Author Helen Davis Chaitman is a nationally recognized litigator with a diverse trial practice in the areas of lender liability, bankruptcy, bank fraud, RICO, professional malpractice, trusts and estates, and white collar defense. In 1995, Ms. Chaitman was named one of the nation's top ten litigators by the National Law Journal for a jury verdict she obtained in an accountants' malpractice case. Ms. Chaitman is the author of The Law of Lender Liability (Warren, Gorham & Lamont 1990)... Since early 2009, Ms. Chaitman has been an outspoken advocate for investors in Bernard L. Madoff Investment Securities LLC (more here).
Reminder: Pharmboy is available to chat with Members, comments are found below each post.
Well PSW Subscribers....I am still here, barely. From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.
First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices. Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment. Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer. For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...
I just wanted to be sure you saw this. There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.
If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.
Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.
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