Posts Tagged ‘Invisible Hand’

The New Deal Meets ‘The Wire’

The New Deal Meets ‘The Wire’

By Bryce Covert, courtesy of New Deal 2.0

What does Wall Street have to do with “The Wire“? Roosevelt Institute Senior Fellow Tom Ferguson took to the streets of Baltimore with the Real News Network to explain. There, boarded-up buildings and screaming police sirens demonstrate what happens when communities are left on the hook for bankers’ bets turned sour. Ferguson explains how “collateral damage” accumulated when unaffordable loans that were pushed on the people of Baltimore collapsed and brought down the price of houses around them. He points out that without a steady tax base, no one will make loans to the city, which, like many others, is desperate for funds. “It’s really a Catch-22,” says Ferguson.

What the people of “The Wire” really need are New Deal programs, he proposes. The administration should “move vigorously to put people back to work. You should have seen cranes and construction stuff everywhere,” he says. Obama should have revived the CCC and other programs to get us back to full employment — because as he points out, that’s the only real panacea to get us out of crisis.

And where is Wall Street now? “The invisible hand is just waving goodbye,” quips Ferguson. Watch the full interview:


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Daniel Shaffer Notices the “Invisible Hand” aka Plunge Protection Team

 

Daniel Shaffer Notices the "Invisible Hand" aka Plunge Protection Team

I am glad I am not the only one who notices these things…. I am only speaking as someone who has watched the market since mid 90s and have never seen the behavior I see now. Whenever a key technical average is threatened a magical flood of futures buying comes in. Almost every morning the past 10 weeks pre market futures are green (apparently there is not enough time to buy stocks between 9:30 AM and 4:00 PM). The last 30 minutes has magical reversals – we saw it just last Thursday at a key moving average. [May 21: Bookkeeping - Covering Index Shorts Around 3:30 - 3:45 PM]

There can only be one entity who has the buying power to do this… and with Goldman Sachs as the 4th arm of government you can use them behind closed doors. But I am sure we’ll never know the truth… and I hate to sound like a grassy knoll type but the market just does not act like it used to if you really watch closely. The S&P now regularly jumps in 4-5 point increments in a matter of 60-120 seconds late in the day. In my humble opinion the government knows so many quant and program trades now are tied to the indexes that it is easy to manipulate this market… you lead, they will follow automatically (by their programming). So for a relatively low cost you can move things where they "should be", and the momentum performance chasing computers will support your case. And Goldman Sachs can pile up trading wins since somewhere in their bowels, in the cigar smoke… cheers of victory cry out. From late April via ZeroHedge

Clearly in a ‘free market’ system it would look embarrassing for this type of behavior to be out in the open. But heck Japan was tossing around


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ValueWalk

The Minimum Wage Alternative No One Is Talking About

By insidesources. Originally published at ValueWalk.

Lawmakers and activists have often touted the minimum wage as a way to address poverty, but one tax break could provide an alternative that is less economically risky.

Photo by WageIndicator.org – Pictures from Paulien Osse and

The Earned Income Tax Credit (EITC) is a tax break aimed specifically at lower income households. It helps the working poor by allowing them to keep more of their paycheck when paying income tax. Some experts note the policy could help the poor while avoiding many of the economic shortfalls that the minimum wa...



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Zero Hedge

"Things Are Worse" - Dollar Stores' Startling Admission: Half Of US Consumers Are In Dire Straits

Courtesy of ZeroHedge. View original post here.

If there was any confusion about how the lower half of the US consumer class is doing these days, it was quickly lifted following today's distressing earnings calls of dollar store titans, Dollar General and Dollar Tree.

Discount retailer Dollar General said it was cutting prices on its most popular items such as bread, eggs and milk, intensifying a price war among already commoditized products with retail giant Wal-Mart Stores to win back falling market share. It shares fell the most on record, plunging by 18% after the company missed on revenue, ...



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Phil's Favorites

Uncertainty Soars in China and UK

Courtesy of Mish.

Global uncertainty is on the rise, led by China and the UK.

In the US and Europe measures of uncertainly are on the decline. I gather this from a chart that ZeroHedge tweeted this morning.

Global Uncertainty

I asked ZeroHedge where the chart came from and he replied “In today’s Citi report from Willem Buiter”.

OK, but where did Buiter get the data?

Although the scales are different, the answer appears to be Economic Policy Uncertainty. The the patterns match precisely.

Economic Policy Uncertainty UK

...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

OMEGA: 'The in-place equity bull market should last a long time' (Business Insider)

It's a good time to be in stocks, according to Omega Advisors' Steve Einhorn.

The stock market should forge ahead on its bull run, Einhorn said in an email Sunday to macro traders that was viewed by Business Insider.

Goldman Sees Pound, Yen and Kiwi Most Exposed to Yellen Shock (Bloomberg)

Goldman Sachs Group Inc. sees the pound, the yen and the New Zealand dollar as most vulnera...



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Chart School

S&P 500 Snapshot: Another Down Day Before Jackson Hole Friday

Courtesy of Doug Short's Advisor Perspectives.

Equity markets around the globe posted losses today, rather minor ones in the US. Our benchmark S&P 500 spent the day in a narrow range between its 0.16% late morning high to its -0.26% intraday low at the beginning of the final hour of trading. It trimmed about half the loss to close at -0.14% for the day. Today's trading range was at the 9th percentile of the 164 market day so far in 2016. Volume was on the light side in advance of the final day of the Jackson Hole event, with Fed Chair Yellen in the spotlight tomorrow morning.

The yield on the 10-year note closed at at 1.58%, up two basis points from the previous close.

Here is a snapshot of past five sessions in the S&P 500.

Here is daily chart of index. We see th...



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Kimble Charting Solutions

Gold Mining stocks could be breaking important support

Courtesy of Chris Kimble.

Gold mining stocks have had a great year 2016. From the lows, GDX is up over 100%, remaining inside of a steep rising channel. The rising channel GDX has been in during this historic sharp rally, could be breaking.

CLICK ON CHART TO ENLARGE

GDX has remained inside of the blue rising channel for the majority of 2016. This channel has contained a 100% rally in the past few months.

The rally took GDX up to an unfilled GAP, just below its 38% Fibonacci retrac...



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Biotech

Epizyme - A Waiting Game

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

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...



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OpTrader

Swing trading portfolio - week of August 22nd, 2016

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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Digital Currencies

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust

 

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust 

By  at Bloomberg

Excerpt:

Stefan Thomas, who introduced millions of people to bitcoin, has had a change of heart.

Blockchain, the ledger software that makes the digital currency possible...



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Mapping The Market

Illusion of Choice

From Jean-Luc:

Looks like we are down to about 10 companies for our consumer goods:

http://www.visualcapitalist.com/illusion-of-choice-consumer-brands/

Just like banks, airlines and cable companies! 

The Illusion of Choice in Consumer Brands

Explore the full-size version of the above graphic in all its glory.

If today’s infographic looks familiar, that’s because it originates from a well-circulated report that Oxfam International puts together to show consolidation i...



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All About Trends

Mid-Day Update

Reminder: Harlan 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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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 jennifersurovy@yahoo.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.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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