Posts Tagged ‘law makers’

Do Lawmakers Legally Insider Trade?

Do Lawmakers Legally Insider Trade?

Courtesy of Damien Hoffman at Wall St. Cheat Sheet 

Biden_smirk

Lawmakers possess many perks. However, legal insider trading may be the biggest fringe benefit of all.

A study* released by Professor Alan Ziobrowski at Georgia State University concluded legislators in Congress make “significant abnormal returns.” Moreover, active traders outperform corporate executives. “We have every reason to believe they are trading on information that the rest of us don’t have,” reports Ziobrowski.

How the hell is this bullshit going on? Craig Holman at consumer watchdog organization Public Citizen notes, “The Securities and Exchange Act does not apply to members of Congress, congressional staff, or even lobbyists.” Outraged?

If you are a voting citizen, your public representatives can legally trade investment vehicles based on information received at work. And much information is gleaned long before trickling down to the good ‘ole People. Thus, as you already deduced, a major conflict of interest exists when your political representative must choose between your needs and those of his/her portfolio.

This is another example of the cosmic irony in which Wall Street is overseen by Washington yet no one is overseeing DC. During my interview with Congressman Alan Grayson he explained the importance of auditing the Federal Reserve. While we’re making a list and checking it twice, let’s get lawmaker insider trading into the “Must Do Now” column.

* The study used hundreds of personal financial disclosures and more than 6000 stock transactions by members of Congress going back up to 15 years.justice

(Source: American Public Media.)

Note: Wall St. Cheat Sheet is offering a FREE 14-day, no risk trial of our Premium Newsletter - just click here. 

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This issue Damien raises came up here before, back in July, I wrote:

Insider trading is illegal, but the definition of insider trading is not inclusive enough. Government employees, buying and selling on non-public information, clearly violates the spirit of insider trading laws, but till now has been overlooked.

Bill Aims to Prevent Use of Insider Financial Information by Federal Workers

With the federal government increasingly involved in the financial affairs of private companies, a pair of lawmakers has proposed prohibiting members of Congress and other federal employees from trading stocks


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Zero Hedge

Huge 300,000 Bpd Fracklog Could Derail Oil Price Recovery

Courtesy of ZeroHedge. View original post here.

Authored by Nick Cunningham via OilPrice.com,

Thousands of drilled shale wells are sitting idle, unfracked and uncompleted.

The backlog of drilled but uncompleted wells (DUCs) grew dramatically beginning in 2014, as low oil prices forced drillers to hold off on completion in hopes of higher prices at a later date. After all, why bring production online in a low price environment when the same oil could earn more in the future if prices rebound. Tha...



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ValueWalk

How Much Of Your State's Debt Rests On Your Shoulders

By HowMuch. Originally published at ValueWalk.

Uncle Sam is not the only one who can raise taxes and borrow money on your behalf. Those powers also belong to each and every state in the Union – and they all exercise them. Which means that as Americans you not only shoulder the weight of the federal debt (your share: about $42,500), but also carry the burden of your state’s IOUs. That burden varies per state of course, and the spread is very wide indeed, as shown by this graph, based on data released last month by the Tax Foundation.

States are shown bigger and closer to the center if their debt is higher. Red state...



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Phil's Favorites

PhilStockWorld.com Weekly Trading Webinar

 

PhilStockWorld.com Weekly Trading Webinar - 03-29-17

For LIVE access on Wednesday afternoons, join us at Phil's Stock World – click here

Major Topics:

00:02:31 Government Security
00:06:49 Checking on the Markets
00:08:40 Macy's Charts
00:08:53 Long-Term Portfolio
00:17:29 Short-Term Portfolio
00:21:06 5% Portfolio
00:31:15 XON
00:33:49 Trade Ideas
00:37:05 ETP
00:39:48 Cecking on the Markets
00:43:22 Energy Transfer Partners: Dakota Access Pipeline
00:47:36 CHK Charts and Trade Ideas
00:54:24 WYNN
01:01:45 WYNN Trade Ideas
01:09:53 TSLA
01:17:25 Petroleum Status Report
01:22:47 $WTIC
01:24:50 Petroleum Status Report
01:32:24 Peak Oil...



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Kimble Charting Solutions

Energy Sector; Two Thirds chance they rally here

Courtesy of Chris Kimble.

Below looks at the performance of the S&P 500 Sectors, looking back 5-years. The winner for the lowest performance is the Energy Sector (-1.42%). XLE is lagging the S&P 500 by almost 70%, in just 5-years. “Time for them to rally?”

CLICK ON CHART TO ENLARGE

Below looks at the Energy ETF (XLE)/S&P 500 ratio over the past 17-years and why we find this pattern worth looking closer into.

...



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Chart School

SP500 Kitchin cycle says trouble brewing

Courtesy of Read the Ticker.

Since March 2009 the SP500 is up 250%, so another 10% gain is just chump change, and chasing it may be a step too far!

The Kitchin cycle (purple loops) suggests trouble can be expected between May 2017 and June 2018, readtheticker.com suggests a minimum 20% correction is a sure thing during the next 18 months with the TRUMP'ster around. Why chase a 10% gain now? Best waiting for the expected market correction before increasing your exposure to real market risk. Makes sense no!

NOTE: The price chart below with our RTTHurstDPO indicator shows price is conforming to the 900 bar Kitchin cycle.

Click for popup. Clear your browser cache if image is not showing.


O...

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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Wall Street posts sharp gains, fueled by strong consumer data (Reuters)

U.S. stocks ended sharply higher on Tuesday, with financial and energy shares surging as data showed U.S. consumer confidence soaring to a more than 16-year high.

If Stocks Wobble, Will Bonds Be There To Absorb the Blow? (The Wall Street Journal)

If stocks are hitting a sticky patch, are bonds bound to shine? That was certainly the case in the first half of last year, when sharp falls in equity markets helped push bond prices sky-high. But the backdrop is different this time around.

...



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OpTrader

Swing trading portfolio - week of March 27th, 2017

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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Members' Corner

More Natterings

Courtesy of The Nattering Naybob

[Click on the titles for the full articles.]

A Quick $20 Trick?

Summary

Discussion, critique and analysis of the potential impacts on equity, bond, commodity, capital and asset markets regarding the following:

  • Last time out, Sinbad The Sailor, QuickLogic.
  • GlobalFoundries, Jha, Smartron and cricket.
  • Quick money, fungible, demographics, QUIK focus.

Last Time Out

Monetary policy is just one form of policy that effects capital,...



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Digital Currencies

Bitcoin Tumbles Below Gold As China Tightens Regulations

Courtesy of Zero Hedge

Having rebounded rapidly from the ETF-decision disappointment, Bitcoin suffered another major setback overnight as Chinese regulators are circulating new guidelines that, if enacted, would require exchanges to verify the identity of clients and adhere to banking regulations.

A New York startup called Chainalysis estimated that roughly $2 billion of bitcoin moved out of China in 2016.

As The Wall Street Journal reports, the move to regulate bitcoin exchanges brings assurance that Chinese authorities will tolerate some level of trading, after months of uncertainty. A draft of the guidelines also indicates th...



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Mapping The Market

Congress begins rolling back Obama's broadband privacy rules

Courtesy of Jean Luc

I am trying to remember who on this board said that people wanted to Trump because they want their freedom back. Well….

Congress begins rolling back Obama's broadband privacy rules

By Daniel Cooper, Endgadget

ISPs will soon be able to sell your most private data without your consent.

As expected, Republicans in Congress have begun the process of rolling back the FCC's broadband privacy rules which prevent excessive surveillance. Arizona Republican Jeff Flake introduced a resolution to scrub the rules, using Congress' powers to invalidate recently-approved federal regulations. Reuters reports that the move has broad support, with 34 other names throwing their weight behind the res...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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Biotech

The Medicines Company: Insider Buying

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

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

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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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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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