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Failing Friday – China Defaults Keep Adding Up

FXI WEEKLYI told you so.

I told you so yesterday and, much more profitably, I told you so on the morning of May 11th, when FXI opened at $50.75 on news of more Chinese stimulus and we called for a short using the FXI June $50 puts, which were $1.20 at the time and are now $1.60 – up 33% in 12 days.  We're already done with those and have moved on to new FXI short positions.  

Yesterday we talked about the sudden and still unexplained failures of Hanergy and Goldin and now, this morning, Ordos' (the ghost city) Huyan Investment Group is unable to pay the piper on $194M round of bonds as they have $1.1Bn in debt and just $3.5M in cash remaining.   

Huyan is just a drop in the Ordos bucket, where $3-5BBn worth of bonds are likely to default every year for the next 12 years – so the hits just keep on coming in China.  Ordos city bonds have climbed to 9.63% as the city's rating has been cut to A on negative watch.  In the rating statement, Pengyuan described the Ordos property market as “extremely not optimistic” because of the slowing economy and pressure the coal industry is facing.  Several other firms have also been downgraded and will be having trouble rolling their debt in the next round.

Meanwhile, Zhuhai Zhongfu Enterprise (a bottling company) is short $72M of the next $106M they owe on May 28th and they have just $10M left in the bank.  This company employs 4,000 people and bottles for both KO and PEP in China.  Meanwhile, shares of ZZ are up 126% this year but have been suspended since April 29th with a $10Bn market cap.  This is the state of Chinese companies, folks – there are many more examples and here's even more.   

The above chart illustrates the game that is being played in China to keep things LOOKING good, even while they are falling apart.  Then we have to take into account that 90% of the public companies in China are some form of quasi-state controlled entities.  While a lot of "investors" take solace in that, believing the Government will back up these companies if they begin to stumble – the consultant in me has to consider the internal bleeding of all these companies adding up to possibly Trillions of Dollars (certain Trillions of Yuan) in bailouts.  How long can the PBOC really keep this up?

Since the answer is probably not "forever", we can expect, at some point, a bit of a correction.  It's not likely the US, Europe and certainly not the rest of Asia will be able to avoid the fallout of a Chinese correction so we're going to be watching China very carefully this summer and reading between the lines of their policy announcements – especially when the Premier talks about "letting the markets work," which is code for no longer bailing out failing businesses.  

It might not be too bad because most of the profits in China are paper profits anyway.  People bought $1,000 worth of stock last year and now they think they have $10,000 but really it's $500.  Of course, multiply that by half a Billion Chinese speculators and it does add up.  Global Markets, led by China, just hit $75Tn – a new record.  This is really amazing since Global GDP is still lower than it was in 2007 so that means that the ratio of stock valuations is now at an all-time high – isn't that special?  

Our own GDP is up about $2Tn since 2007, so we're doing our share – especially when you consider we've borrowed $12Tn to boost it to that level.  Of course, Obama borrowed far less than Bush, who came in with a $9Tn GDP and $24Tn in Total Debt (Government, Business and Consumer) but, no matter who you want to blame, the fact of the matter is that, 15 years later, our GDP is $16Tn and now we're $58Tn in debt. 

This is going on all over the World as the bottom 90% are forced to go deeper and deeper into debt to finance their lifestyles (or just to feed their children) which maintains the ILLUSION of prosperity and keeps the profits flowing up to the top 1%, who collect them all and then refuse to pay taxes and vote down reform or anything that might actually fix the economy and the bottom 90% sink deeper and deeper into debt while the top 1% accumulate more and more of the wealth.  

It used to be that the Corporations (who are also "people" in the top 1%) used to spend some of their money on infrastructure projects – building new factories, buying machines that men would work with, etc.  That part of the chain is also broken and this year our Corporate Masters will spend $500Bn of the profits sent to them by the Bottom 90% to BUY BACK THEIR OWN STOCK.  This benefits no one except the members of the investing class.  

Even worse, a lot of the machines that our Corporate Masters are now buying are ROBOTS, which are meant to eliminate the need for us entirely.  Yes, ENTIRELY – no one is selling a robot and talking about how many jobs it keeps, are they?  As the robots get more and more sophisticated, they will need less and less human intervention.  Obviously, that would be the improvement of each new model – needing less and less human labor.  Even the goal of AI is to eliminate the need for programmers – though they seem too stupid to see that…

So ignore the warning signs while you can, enjoy the grand illusion while it lasts but we'll be heading into this long weekend "Cashy and Cautious" – just in case it falls apart faster than we think it will.

Don't be fooled by the radio

The TV or the magazines

They'll show you photographs of how your life should be

But they're just someone else's fantasies

So if you think your life is complete confusion

'Cause you never win the game

Just remember that it's a grand illusion

And deep inside we're all the same – Styx 

The film "La Grande Illusion," by Renior, is an all-time classic about class relationships among French officers who were prisoners of war under the Germans in WWI.  The illusion is keeping up appearances while the World crumbles around them.  Keep that in mind while you're firing up the barbcue this weekend.  

Have a great holiday weekend,

- Phil

 


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  1. Good morning!  FXI up as China expands access to markets.


  2. Happy Friday!


  3. Dollar rising to $96……Greek wease or something else?


  4. SHAK making a run to 100.  Please have options soon.


  5. Good morning!

    Yes, FXI popping on China taking desperate measures again.  What happens if the money flows out, not in?   We'll see what happens, we just added 20 of the July $47 puts for $1 to the STP and I'd LOVE to spend $1 to roll them up to the $50 puts (last $2.33) if we get a chance

    Dollar gong ballistic to 96.18.  That's slammed oil back to $59.48 – I imagine they will fight hard to get $60 back.  /RB collapsed back to $2.036 – that's interesting (and that's why we take our money and run).  

    Yellen speaks at 1 so anything can happen and volume is non-existent today.  


  6. Didn't realize the float is so small on SHAK, that's why there are no options.  They have 5.93mm and you need 7mm shares publicly outstanding to have options.  Shrewd move.


  7. I think the Dollar is up on the 0.3% core CPI read.  That puts the Fed back in play as 3.6% annualized is now running too hot!  Meanwhile, the overall CPI is weak at 0.1% so margins are still being squeezed in the real world (I know, where is that?).  

    SHACK/Rustle – Shrewd indeed, I'm glad they didn't have options because I would have been shorting already!


  8. Indexes holding up well against a 1% pop in the Dollar but on today's volume, everything is meaningless.  Even Cramer is leaving for the weekend already. 

    Futures are 18,241, 2,126, 4,534 and 1,256 but I'm not inclined to play as it's so random today.  Oil back to $60 as expected and they are not likely to let that fail again.  /RB back to $2.05 already and I predict $2.07 at least.


  9. Good point, Pharm.  


  10. From Bloomberg, May 22, 2015, 8:30:01 AM
     May 22 — The cost of living excluding food and fuel rose at a faster pace than expected in April, indicating inflation is inching toward the Fed’s goal. Bloomberg’s Julie Hyman and Michael McKee report on “Market Makers.”

    The cost of living excluding food and fuel rose at a faster pace than expected in April, indicating inflation is inching toward the Federal Reserve’s goal.


  11. From Bloomberg, May 22, 2015, 12:00:23 AM

    Regulators’ efforts to rein in Wall Street’s biggest banks are in danger of backfiring.


  12. From Bloomberg, May 22, 2015, 6:47:40 AM

    This year’s rally in zinc just evaporated.


  13. From Bloomberg, May 22, 2015, 9:45:38 AM

    Mexico consumer prices fell more than expected in the first half of May, as the government phased in electricity discounts and pressure from a weaker currency remained limited.


  14. From Bloomberg, May 22, 2015, 9:00:00 AM

    Russian wages shrank the most since 1999 and a retail slump quickened, pointing to a deeper recession.


  15. Everyday I sign into my account and I am down 1-2K everyday! So far in 3 months I am down 15K!!!! I am absolutely floored by using these trades that I am losing ground at such an astounding rate. This is the exact opposite of what I usually do. I can only surmise that this "hedging" is NOT working for me. I now have a supposedly profitable trade in aapl, only it isn't because I sold the calls which wipes out my profit. I definitely cannot continue. I've been at this for over a year and last year end I had my first loss in 15 years!! That was the big losses in GTAT. Just lost the Vxx trade for another 2K. I am down on HOV right now and can't get extricated it seems. Really perturbed.


  16. AAPL – Looks to be holding selling some 140 calls.


  17. From Bloomberg, May 22, 2015, 9:29:45 AM

    Zimbabwe’s ruling party fired seven senior officials Thursday and suspended 13, said Saviour Kasukuwere, Zanu-PF’s political commissar.


  18. From Bloomberg, May 22, 2015, 8:59:13 AM

    Hanergy Thin Film Solar Group Ltd. Chairman Li Hejun increased the size of his short position in the company’s shares days before the stock plunged, effectively betting the value of his the manufacturer he founded would fall.


  19. From Bloomberg, May 22, 2015, 8:48:58 AM

    Brazil’s banks led weekly losses in the Americas as the nation raised a tax on industry profits in a bid to shore up fiscal accounts and avoid a downgrade to junk.


  20. From Bloomberg, May 22, 2015, 8:45:48 AM

    Treasuries fell after a report showed core consumer prices rose more than forecast last month, indicating inflation is moving closer to the Federal Reserve’s goal.


  21. From Bloomberg, May 22, 2015, 8:46:17 AM

    Pedestrians carry shopping bags as they pass a women’s clothing fashion store window display in Mannheim, Germany. The Ifo index of German business confidence and the ZEW gauge of investor sentiment have each risen for five straight months. Consumer optimism is at a record high. Photographer: Krisztian Bocsi/Bloomberg

    “It would be difficult to overstate the recent downside surprise in global consumer spending,” writes JPMorgan senior global economist Joseph Lupton.


  22. From Bloomberg, May 22, 2015, 8:30:01 AM

    Canada’s inflation rate last month was the slowest since October 2013, falling below the central bank’s target band on a drop in energy costs.


  23. Hi Phil, couple quick questions;

    LL spread – I have the Jan 2017 LL 25/40 call spread showing $4.9 for the 25s and $1.9 for the 40s although spreads seem a bit wide. I know you did some rolling of your other LL positions yesterday, just wondering what you would suggest for this spread? Worth it to roll down to the 20 call ?

    It looks like i could roll the 40 down to the 30 and the 25 down to the 20 for maybe net $0.

    Also I know I have read your comments before on rolling but it still hasnt fully "clicked" as to some aspects of why we would roll to certain options as opposed to others. 

    In this situation LL dropped a little more than expected after the initial bad news but we still believe its overblown and will eventually recover so we rolled down to improve position (rather than rolling out for more time) ?

    FXI – dont have a position yet, if I was going to initiate one now would you suggest going straight for the  $50 at around 1.85? I know youve been recommending this one for a while.

     

    -Thanks in advance


  24. Pharm, thanks for the article! Excellent !

         Bright people amaze me and I feel honored to be able to benefit from their insights (yes, Phil and you are in my selection of bright people).  Given my senior years I can't help but feel that we are living in interesting times.  BUT, we always have: WW II, the cold war, Korea, Vietnam, the Middle East conflict, the environment issues, on and on.  I pray for the capacity, strength, and clarity of thought to see the brightness of the "rightful thinking" of others and not get caught up with to much greed and fear thinking of my own.  Newt


  25. Pirateinvestor:  In your posting it is obvious that you are in a painful position.  May I suggest that you not put on any hedges, which for me lost me money, rather BE THE BANKER as Phil suggests. Sell only  2017 short puts discounted 20%. Using this strategy my trading account is up 20%+ with completed trades +$119,000 YTD. BTW the 20% discount to current price is then your hedge.


  26. Phil/JO

    JO getting smacked down. Going to get really interesting under $20. 

    http://www.forbes.com/sites/michaellingenheld/2015/02/03/coffees-weakness-masks-bullish-fundamentals/2/

    This story says shortage (February date)

    http://www.agrimoney.com/news/coffee-prices-plunge-as-volcafe-lifts-supply-hopes--8364.html

    This predicts the opposite.


  27. Pirate, I feel for you but contrary of what you are saying I am making much more on the upside every day. 

    The secret is Tree planting I have not placed many lately as most stocks are to my feeling on the upper side.

    Last witching Friday I took for the month 39K on monthly cherry calls. Even taking blows on NFLX and WYNN I even closed my puts on BTU. Even Phil did not give me any simpathy on NFLX!!!

    But for me the trees are the backbone of my ports. Looking at my combined ports at the moment they up 5K for the day but this does not mean anyting as they could be down 20K by the night. But the secret is they do not shake the trees. The other day some one was closing the AAPL Jan 17 90/120 giving a chunk away. Plants and trees need to mature or better do not plant them.


  28. 4god / Puts:

    Perhaps the point of pirate is valid, in the sense that  hedges sometimes are eroding a lot of the potential value, when I try  to sell a put (which nowadays with the market as it is) which puts are you selling now…at decent margins?…many puts are now at 2-3% when they were at 10% or more some years ago.


  29. Pirate even my CAT JUN backratio is looking good You might have missed it when I placed it on the board.

    The HAS x2 only ( a bet with a friend with his young wife not wanting to spend time on option) is up over 1200 since I placed it on the board. Yes you could get 8.75  on the 10$ spread now but what is the rush? Even if that stock would drop 15$ I still would get my 10$


  30. Phil, Thank you. Closed one of my APPL spreads this AM for a respectable 168% gain in 10 months.


  31. Advill:  As noted in my post. I go for the maximum premium… that is why I go out to 2017. Short duration puts do not give me the required return of margin (ROM). I'll post my next trade so you can see what I'm talking about.


  32. GDX – July 20.5 Calls for 72c or so.  Looking for $1 or better.  Swing trade. 


  33. It has been an ugly week for commodities, and now it seems understandable why: As of may 21st (yesterday), we've seen the heaviest single-week outflows of funds from commodities/precious metal funds and simultaneously the heaviest single-week inflows of funds into equity/bond funds since 2013.

    http://www.reuters.com/article/2015/05/22/us-investing-fundflows-lipper-idUSKBN0O62RJ20150522


  34. PHIL

    I have MYL  Oct 60/70 Bull Call — fully in the money — my account shows – .50 net. What would you recommend, if anything?


  35. Down/Pirate – Well $1-2K/day sounds like a lot.  It sounds like you have a lot of speculative trades and maybe not enough blue chips?  Especially over a year, it's hard to find a combination of blue chips (outside of energy) that hasn't done very well.  I think you need to look at your mix more closely and maybe concentrate more on slow, steady plays, rather than going for big gains with small or volatile positions.  It's also possible you are simply over-hedged although this may just be a blow-off top and not the best time to take bear losses and flip more bullish. 

    And what IHS said. 

    And what Yodi said. 

    LL/Crs – It's always worth it to roll down (assuming you have faith in the position) for less than 0.50 per $1. The 2017 $25s are $4.90 but I'm sure you can get $5-5.10 if you are patient and the $20s should be $6.80 so that's an easy roll.  The short $40s are $1.90 and I wouldn't pay them $1.90, I'd just spend that $1.90 on the roll down to the $20s and maybe offer $1.50 for the short $40s, in case it fills.  Then you can sell $35s (now $2.70), hopefully for $3 to pay for the roll.

    In general, you have to look at a roll as a new trade.  Would you take that trade from scratch (ignoring your current position)?  Then the question is, is it BETTER than your current position and, even if so, is it worth the extra money you have to put in.  Only after you're sure about all those things should you roll.

    On FXI, at this point I'd go right for the July $50 puts (from scratch), now $1.82.  Yesterday, I was worried about this (spike up on more easing) over the weekend.   Now I'm not worried because this does nothing to stop more companies from defaulting on their debt.  

    Aw shucks, Newt, thanks.  enlightened  Good philosophy.  I was very lucky to have a Grandfather who had a good business head and loved to tell stories of his life, 60 years before I was born (1903+).  Better than a book, because I could ask questions and he would steer the narrative, he helped me live through the Industrial Revolution and the Great Depression from the eyes of the only boy with 4 sisters who grew up in Europe during WWI.   As Isaac Newton said "If I have seen further than others, it is by standing on the shoulders of giants."  We are all fortunate to be able to share the knowledge we've accumulated during our lives and I'm really proud of the group we've assembled here – as I learn something new every day as well. 

    JO/DC – Yeah, it really fell apart over the last few days and now $130 failed on Coffee.  I'm pretty sure it's overdone but maybe Volcafe is right – have to gather more info, especially since Brazil's economy is getting more and more unstable.  

    "There are sufficient water reserves for additional irrigation, but further delays to the rainy season will affect remote areas and average yield potential."

    Puts/Advill – That's why we haven't been selling many lately.  Gotta be patient and wait for a good price as well as a good position on the stocks.  

    HAS/Yodi – That was a great call (12/18), you caught the dead bottom!  CAT came back nicely too.  

    +168%/Sibe – That's very respectable.  You're very welcome. 

    Outflows/Yo – Wow.  I wonder if Goldman's call on oil drove some of that?  

    MYL/Zten – Not sure what you mean by .50 net.  The $60s are $12.15 and the $70s are $6 so net is $6.15 out of possible $10.  I don't think they fall below $65 so I'd be looking at it as risking $1 to make $3.85 more in 5 months – seems like that's still worthwhile. If MYL slips below $70 or the $60s drop to $10, then you may want to consider cashing it in and maybe making a long cover but that's kind of convoluted so maybe just consider what you have to be "on track" for now. 


  36. Yodi and all-thanks for your imput. I added my account up with the hedges and it is not as bad as I thought & I have been doing better when I sell only half of the position on hedges as Yodi suggested and that seems to work. It is such a shock to open the account & just see RED! Anyways, I try to be circumspect and let things ride as the trees are planted, but I KNOW I have to keep a careful eye on things as they tend to get away. I don't get the rolls done in a timely fashion which I am going to do right now with SDS. But I did do a lot right so that is what I am going to stay positive about. Phil is so darn bright & he doesn't realize what is easy for him is tough for us, but I appreciate all of you and your knowledge that you share. And I have sold some puts but after GTAT, they make me nervous!


  37. Phil, Magna Gratia! Newt  


  38. We all go through rough patches, Pirate and, like it says on the shirt: "GTAT happens" but, when it does, you can't assume all stocks are GTAT – it's just one of those things, we got caught with our pants down and LL may burn us too but the other 60 stocks we're tracking in our portfolios aren't all likely to crash at once and, if we consistently sell premium on ALL of them (not just a few that we guess on), then, statistically, we'll do very well collecting a constant stream of revenues.  

    Even in the collapse in 2008 – only autos and financials were seriously in danger of going under and only some of them – the people who got burned were the ones who bailed – especially the ones who over-leveraged and were forced to sell.  

    You say I'm smart but I'm really only smart enough to know that I shouldn't try to outhink the markets.  While we have poked short, we haven't tried to fight the tide and have simply moved to the sidelines on what I THINK may be a blow-off top in the market.  If it isn't, we still have our cash (with huge gains) and we can move forward and look for (relative) bargains going forward but the philosophy doesn't change – find ways to SELL premium to people who do think they are smarter than the market. 

    Gratias Newt.  "Quandoquidem inter nos sanctissima divitiarum maiestas, esti funesta pecunia templo nondum habitas." (Among us, the god most revered is Wealth, but so far it has no temple of its own.)


  39. Phil-I am looking at my mix and  don't have any metal plays. Have most of the trades you suggested, tza, sds,  that I have rolled once already. I tend to want to get out of trades when I see profit, because like you, I don't trust this market as far as I could throw an elephant. Had that same feeling in 2007 that made me feel like the bottom is ready to fall out & then it did!


  40. here we are again fighting 11200 on NYA


  41. I keep hearing that Doors tune "Break on through to the other side"


  42. I had that feeling too, Pirate but, like 1999, it took a year for us to be right.  ABX and FCX are my two favorite metal plays but I still think CLF can pull it out too.  These are trades in case the economy is better than we think.  


  43. TIM COOK: The Apple Watch will finally be in stores ‘by June’
    http://www.businessinsider.com/apple-watch-store-by-june-tim-cook-china-android-wear-2015-5

    Shared from Technology on Flipboard, your personal magazine.
    Get it for free to keep up with the news you care about.


  44. Germany's finance minister says Greece may have to invent a 'parallel currency'


    businessinsider.com / Mike Bird

    Greece may have to bring in a “parallel currency” if progress stalls in negotiations with the country’s European creditors, according to Wolfgang Schaeu…


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    zerohedge.com

    You May No Longer Think Wrong Thoughts, Citizen Shortly after the election victory that probably surprised no-one more than himself, David Cameron launc…


  46. Bank CEO to bankers: Where are your values?


    cnn.com / Keith Mestrich

    When five of the world’s biggest banks were busted this week for manipulating the cost of dollars and euros, they did more than violate antitrust laws. …


  47. The Illusion Of Democracy


    zerohedge.com

    Distract, deny, democracy… The past several weeks have made one thing crystal-clear: Our country faces unmitigated disaster if the Other Side wins. No…


  48. Apple Watch sales started with a bang, tailed off into a whimper, shopping tracking firm says


    9to5mac.com / Ben Lovejoy

    Slice Intelligence, which monitors purchase receipts in the email inboxes of a panel of two million online shoppers, has published a chart showing that …



  49. reuters.com

    NEW YORK (Reuters) – The U.S. Federal Reserve is likely to stick with plans to raise interest rates later this year, with progress towards its employmen…


  50. Deere profit falls, hit by weak global agriculture sector


    theglobeandmail.com

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    fortune.com / BY BENJAMIN SNYDER

    Nearly 4 million users’ data is at risk Adult website AdultFriendFinder has confirmed it’s working with law enforcement and data security experts follow…


  52. Plus500 just suspended its shares after a brutal hedge fund attack


    businessinsider.com / Oscar Williams-Grut

    Plus500 just suspended its shares on London’s junior AIM market after a further 28% price drop on Friday. Plus500 tanked 37% on Monday after the trading…


  53. Amazon offering one-hour food delivery


    cnn.com / Aaron Smith

    This is tasty. Amazon is expanding its Prime Now service to offer quick delivery of food from local stores in Manhattan. Amazon said customers can order…


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    aljazeera.com / Al Jazeera

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  55. reuters.com

    BEIJING (Reuters) – Beijing will build four gas-fired power and heating plants by next year and shut the last of its coal-fired generators by 2017 as pa…


  56. I forgot how religiously pure I am. It's not that I forgot actually, it's that I am not completely immune to the constant noise machine which sometimes pervades my tranquility and righteousness with their evil hatred.


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    istockanalyst.com

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    salon.com / Greta Christina, AlterNet

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    economist.com

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  60. RTN – meanwhile, with it all possibly going to fall apart, RTN is fishing around a multiple support inflection on both daily and weekly charts at 106.33. The trend I see them in is down from March 20th all time high 111.71. Watching for a front-month swing trade with next support around 103-104 if they fail this 106-handle. No trade if closes above 107 (and exit yesterday's calendar too).   No particular fundamental premise to pick on these guys…purely a technical exercise in "reading the tape."


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    wsj.com / Alex Frangos

    Another fresh load of cash is on its way to China’s stock markets. HTSC, also known as Huatai Securities raised $4.5 billion in its Hong Kong initial pu…


  62. .,

    ONTY- wow, is this going to continue to pop like this or should we take the money and run? Is this a sell half situation for those of us in at 1.70 or so or will we be missing the continued growth of a company that is just getting started? Any insight from those more familiar would be welcome?


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  70. reuters.com / John Kemp

    Oil-market watchers are struggling to reconcile the large estimated oversupply in the market with the much smaller buildup of reported inventories and n…



  71. globalresearch.ca / Christina Sarich

    With the exception of a few mentions in the mainstream press when the incident originally occurred, Exxon is getting away with murder concerning their m…


  72. 500 Million Google Phones Fail To Wipe Data On Reset, Claim Cambridge Researchers


    forbes.com / Thomas Fox-Brewster

    It’s been known for some time: Google Android devices aren’t very good at wiping data even though they should completely eradicate all traces of a user …


  73. Why the $5.7 Billion Dollar Fine on Big Banks for Manipulating Global Currency and Interest Rates Is Actually a Joke


    globalresearch.ca / Carey Wedler

    On Wednesday, the Justice Department announced that 5 major banks will be fined a total of about $5.7 billion. The banks plead guilty to manipulating gl…


  74. Minimum Wage by City | The Big Picture


    ritholtz.com / by Barry Ritholtz – May 22nd, 2015, 10:00am

    Good chart, relevant to our discussion of fast food minimum wages in Seattle and earlier elsewhere this week. click for ginormous graphic Source: NY T…



  75. zerohedge.com

    Submitted by Tyler Durden on 05/22/2015 09:38 -0400 Yesterday the average SHAK restaurant was worth $48 million. Today it is $53 million and rising, fol…


  76. U.S. Corporations That Pay No Income Taxes in 2014


    econmatters.com

    Every working American is required to pay income taxes, but American companies get away with paying zero… This year, the IRS collected roughly $1.4 tril…


  77. LOL BDC, very true.

    Bow down before the one you serve.
    you're going to get what you deserve.

    God money's not looking for the cure.
    God money's not concerned with the sick amongst the pure.
    God money let's go dancing on the backs of the bruised.
    God money's not one to choose

    RTN/Scott – Like I said yesterday, getting into an inflection – very bad if they turn down.

    ONTY/Craigs – When in doubt, sell half.

    /NKD/Advill – Things are too uncertain for weekend Futures plays, IMHO.  

    Oh no, Cuba deal back on hold.  Arguing over embassy details.

    Yellen up next.


  78. Yellen says rate hike WILL begin this year BUT it will be a long time before they are back to normal.  She is also concerned about Asia and Emerging Markets.  Nothing actionable…   


  79. yellen saves us again!


  80. Cuba/Phil – doesn't sound like much of a holdup. I'll nose around – an old Peace Corps buddy is, I suspect, a possibility for ambassador.


  81. Lest we forget what Memorial Day is all about.  It's about people like these :

    ~~https://www.youtube.com/embed/7tyT4glkvBs


  82. https://www.youtube.com/embed/7tyT4glkvBs

     

     

     

    Attachments area

     

    Preview YouTube video The Concert for Valor: STEVEN SPIELBERG / Cmdr. BILL KRISSOFF

     

     

     

     

     

    The Concert for Valor: STEVEN SPIELBERG / Cmdr. BILL KRISSOFF


  83. I always have too many positions. exercise for today: identify the number 1 weakest trade..not winning with most to lose and either cash it, or roll it into #1 winning trade.


  84. From Bloomberg, May 22, 2015, 1:00:00 PM

    May 22 — Federal Reserve Chair Janet Yellen still expects to see interest rates rise this year, followed by a gradual pace of tightening, according to the written text of a speech to the Rhode Island Chamber of Commerce. Bloomberg’s Pater Cook reports on “Bloomberg Markets.”

    Federal Reserve Chair Janet Yellen said she still expects to raise interest rates this year if the economy meets her forecasts, with a gradual pace of tightening to follow.


  85. From Bloomberg, May 22, 2015, 11:44:17 AM

    The way some parts of U.S. gross domestic product are calculated are about to change in the wake of the debate over persistently depressed first-quarter growth.



  86. Phil / X has been on a crazy ride today…. i DD on the 2017 25 calls at 4.75, hoping i caught the bottom of the range.  Was unable to fill all day, and then the stock shot up 3% in a short period.  Did not see any news on this.  Do you see a support line around 23?


  87. Oil settling out weaker than expected at $59.66, hurt by very strong Dollar at 96.35.

    Cuba/Snow – I think it's just haggling but they were supposed to make a deal announcement today and had to pull it. 

    Troops/Albo – Never forget. 

    Good idea Scott but don't forget to cash out winners too.  Letting them run until they fall isn't the best strategy either. 

    X/Batman – Every day there's another announcement in Asia that drives X and CLF up and down.  On the whole, X is in a nice rising channel off the bottom:

    CLF more like forming a bottom:

    US Steel boss on the state of the industry

    3 Key Numbers for Cliffs Natural Resources


  88. X…they also trade in a parallel with their North American peers.  AKS, NUE.  So sometimes good/bad news for the other names affect them the same.


  89. Winners/Phil – oh what a beautiful idea! I do hope to try that someday. :?


  90. actually, I did reduce some winners today, ahead of Yellen. And biggest losers to work with have been hedges which I've been rolling along up and down etc per opportunity. Biggest overall losers (abx, etc) are all historic positions that have so little left to lose that it's only upside through 2017 at this point. Except BTU. That sucker is STILL going down?!


  91. BTU/Scott – More bad news today as China purging more coal power plants by 2017 (news above).    


  92. From Bloomberg, May 22, 2015, 12:37:01 PM

    Germany is looking at three proposals to cut emissions from the energy industry, including a “step by step” plan to close coal-fired power stations like those operated by RWE AG and Vattenfall AB.


  93. From Bloomberg, May 22, 2015, 4:20:55 AM

    Processing facilities are built into the mine face at Citic Pacific Ltd.’s Sino Iron project under construction in Karratha, Western Australia, on Aug. 20, 2012. Photographer: Carla Gottgens/Bloomberg

    As slowing Chinese demand for minerals slashes the value of most mining stocks, there is one bright spot: those listed in China.


  94. BTU/phil – thx


  95. 32 massive parties everyone should go to in their lifetime


    businessinsider.com / Talia Avakian

    Most people dream about hitting one epic party in their lifetime, whether it’s Oktoberfest in Germany, Carnaval in Brazil, or Mardi Gras in New Orleans,…


  96. 2015 Is Crushing It For Hottest Year On Record


    thinkprogress.org / by Joe Romm

    Posted on ” 2015 Is Crushing It For Hottest Year On Record ” Share: This was by far the hottest four-month start (January to April) of any year on recor…


  97. How to Use Breadth to Make Sense of a Hideous Flat Market Range


    afraidtotrade.com

    How in the world do you make any actionable sense at all of this pattern seen below: Is it a Diamond? Is it a flat range? Where are the Trades? What in …


  98. Yellen Yap: Point by Point Rebuttal


    globaleconomicanalysis.blogspot.com

    Inquiring minds are reading Fed Chair Janet Yellen’s Outlook for the Economy speech today at the the Providence Chamber of Commerce, Providence, Rhode I…


  99. Warning Sign: Big Dow Theory Divergence


    econmatters.com

    A Big Dow Theory Divergence We briefly want to show a few charts that have caught our eye recently. This is by no means a comprehensive market update (w…



  100. dollarcollapse.com / John Rubino

    0 comments This story isn’t actually about Greece, but it begins there. After the country went functionally bankrupt a few years ago, the solutions prop…


  101. Eight Things To Know As The Large Hadron Collider Breaks Energy Records


    forbes.com / Chad Orzel

    The big news story in high-energy physics at the moment is the news that the Large Hadron Collider (LHC) is finally colliding protons at something close…


  102. This is your brain on Whiteness: The invisible psychology of white American ignorance explained


    salon.com / Chauncey DeVega

    The contrast in media narratives about Baltimore and Waco are undeniable—but many white Americans are blind to them Earlier this week, outlaw motorcycle…


  103. Will someone please ring 'da bell?


  104. Jeb’s voodoo math: 2016 hopeful promises to wreck the budget — just like his brother did


    salon.com / Simon Maloy

    Jeb endorses the same dodgy mathematics George W. Bush used to cut taxes and punch a massive hole in the treasury Jeb Bush is a big fan of voodoo math, …


  105. Oil Prices Unmoved By Oil Rig Count Decline Of Just 1


    zerohedge.com

    Submitted by Tyler Durden on 05/22/2015 13:44 -0400 The total rig count dropped by just 3 last week – the smallest decline since December – to 885, tra…


  106. Capitalism is killing America’s morals, our future


    marketwatch.com / Paul B. Farrell

    Justin Ide/Harvard University News Office Yes, capitalism is working … for the Forbes Global Billionaires whose ranks swelled from 322 in 2000 to 1,82…



  107. Ten things you might not know about antimatter


    symmetrymagazine.org

    Antimatter is the stuff of science fiction. In the book and film Angels and Demons , Professor Langdon tries to save Vatican City from an antimatter bo…


  108. They are having trouble getting green into the close.

    Have a great weekend folks!

    - Phil


  109. Have a safe holiday all!


  110. Have a great weekend everyone!


  111. Nice Scott, I love space stuff.  


  112. Cheers to all!


  113. Graduating Without A Plan? That's How This Millennial Ended Up At The White House


    forbes.com / Denise Restauri

    This post is part of the “Self-Made Women” series featuring women who came from a world without power or wealth, but with the support of family, teacher…


  114. A new interactive website is essentially Google Maps street view for old time New York City


    businessinsider.com / Sarah Goodyear, CityLab

    Beneath the present-day surface that every city shows to the world, there are shadows of the city as it was in previous eras. In some places—Rome is a g…



  115. bloombergview.com / Noah Smith

    Celebrated growth economist Paul Romer — whose name is regularly shortlisted for the Nobel Prize — recently caused a big stir with a paper in the Amer…


  116. Have a good weekend everyone and a 3 day break from this FUN!!!


  117. All:  Promised to let you know my latest short put trade: 50 SLW JAN 17 15 PUT AT 1.50. ROM=50%. 22% downside protection to stike price.

    Have a blessed Memorial Day weekend.


  118. IHS   Thx for that!

    For my account TOS  shows roughly 100% gain on margin in 703 days. 

    Do you hold these to the bitter end or close when you have a certain % gain.


  119. Finally took out 11200 at the close after most folks left early for the weekend,  lol.


  120. gerryf: SLW trade…No, in this market I close a position when it reaches a 50% profit level.


  121. Safe and Happy Memorial Day / Weeekend


  122. Every one to his system Sell at 50% profit he, They call this one bird in the hand three in the bush. 

    How about I could close all my ports today and retire for life. How many of you members would do this?

    Please let me know so at least I know some one reads my note.

    Poor Phil would lose one of his troubled members!!!! Would I have to sell all the Jan17 90/120 apples and let God be a good man? Bet you more than 50% in these once. Still have my apple Jun cherry calls out at 135 Will they be ITM Do I have to roll them? Will apple drop 10% to 118. I am still looking good to my 90/120 with many month to go. Ready to sell many more cherry calls on that leap. 

    IHS Don't fall in love with put. They looking toooo good on a level or up going market, but they come down like an avalanche at you when the market turns. Apply selling put with care. 

    But I wanted to talk about a trade XOM Beaten down from 104 to 83 now 86.52.

    This one you can play two ways make a synthetic BCS spread or spend some more money and buy the stock still paying 3.3% and nothing to sneeze at.

    So simple buy the stock and sell the JUN 15 87 call @ 1.15 it is a 1.3% PM cherry call if called you get 1.63 or 1.9% for the month. But on the other hand not having or wanting to spend the cash Buy a Jan 17 BCS 80/90 for 5.10 and just for good measure you can enter a Jan17 75 putter for 4.85 Now for .25 debit you can start selling cherry calls Starting with 1/2 the Jun 15 87.5 caller for .94. Not a bade deal to start of with. I might warn you you might be in the money on witching day but you can always roll your self out of this one. Don't blame me I will not give you some of my trade ideas. BUT it is always up to you to make the final decision. 

    Have a nice long week end. Thinks might be all turned around on Tuesday.


  123. Sorry it reads '' Iwill give you some of my trade ideas'' just leave the NOT out finger trouble.


  124. YODI: Just to have you rest easy, I have three levels of stops and yes, having lived through the 2008/2009 downturn any system can turn to S--T. The coming sell off will again test my system of stops. I have considered cashing it all in since YTD I have met the 20% profit objective, ala Phil Davis, but can a trading system be truely tested unless it is thru a complete market cycle?

    I'll look at the XOM to take a position in…thanks for the suggestion.  Blessings on this Memorial Day. 


  125. PHIL:  Since it is the weekend see if you can send some time on BIIB.

    Thanks,


  126. From Bloomberg, May 23, 2015, 9:41:18 AM
      Greece’s Prime Minister Alexis Tsipras during a Syriza party meeting in Athens, May 23. Photographer: Yorgos Karahalis/AP Photo

    Greek society can’t absorb more austerity, and the country’s creditors must compromise to break the impasse over the release of funds for its cash-strapped economy, Prime Minister Alexis Tsipras said.


  127. From Bloomberg, May 22, 2015, 1:06:33 PM
      Wolfgang Schaeuble, Germany’s finance minister. Photographer: Jasper Juinen/Bloomberg

    German Finance Minister Wolfgang Schaeuble raised the possibility that Greece may need a parallel currency and European officials are making contingency plans for the Greek banking system as talks on unlocking aid remain stuck.


  128. From Bloomberg, May 22, 2015, 3:23:14 PM
     

    Bank of England staff are assessing the potential risks related to Britain’s renegotiation of its European Union membership and the threat of the country leaving the bloc.


  129. From Bloomberg, May 23, 2015, 2:30:07 PM
      European Central Bank President Mario Draghi. Photographer: Martin Leissl/Bloomberg

    Three of the world’s top central bankers used the stage of a monetary policy conference to defend their strategies and call on governments to do more to boost growth.


  130. From Bloomberg, May 23, 2015, 5:33:14 AM
      Former chief economic adviser to U.S. President Barack Obama, Larry Summers. Photographer: Jason Alden/Bloomberg

    The time has come for central bankers to think about widening their focus, economists told monetary-policy makers gathering on the western edge of the euro area.


  131. From Bloomberg, May 23, 2015, 5:43:50 AM
      State Bank of Pakistan Governor Ashraf Mahmood Wathra. Photographer: Asim Hafeez/Bloomberga

    Pakistan’s central bank unexpectedly cut its benchmark interest rate to the lowest in 42 years in an attempt to spur economic growth as inflation slows in the sixth-most populous nation.


  132. From Bloomberg, May 23, 2015, 2:00:00 AM

    As the pound continued strengthening versus most of its major peers in the aftermath of the U.K. election, the Bank of England has helped shift investors’ focus to economic data.


  133. From Bloomberg, May 23, 2015, 2:00:00 AM

    After the European Central Bank’s Benoit Coeure helped jolt euro-area government bond markets out of a four-week slump, data next week will show the extent to which his comments on faster purchases are being implemented.


  134. From Bloomberg, May 23, 2015, 12:00:11 AM
      Janet Yellen, chair of the U.S. Federal Reserve. Photographer: Andrew Harrer/Bloomberg

    Much of the selloff in Treasuries this month was linked with a bond rout in Europe. Federal Reserve Chair Janet Yellen reminded investors that further bond losses may ensue from a stronger U.S. economy and central-bank credit tightening.


  135. From Bloomberg, May 23, 2015, 10:55:20 AM
      German Finance Minister Wolfgang Schaeuble. Photographer: Andrew Harrer/Bloomberg

    German Finance Minister Wolfgang Schaeuble expects a political tussle with his partners over austerity policy when G-7 finance ministers meet on May 27-May 29 in Dresden.


  136. From Bloomberg, May 22, 2015, 4:43:09 PM
    Janet Yellen, chair of the U.S. Federal Reserve. Photographer: Scott Eisen/Bloomberg

    No volume? No volatility? No problem.


  137. Yodi, I read your posts and a big Thank You for your instructions and ideas.  

    Yes, I have the same issue as you with the profits…do I take them now or not?  My rule is yes I close the trade, if I am at 80% or more of my original ROI in margin commitment. Before I commit to the investment there must be a minimum ANNUALIZED return of 20% or more.  Usually, the ROI is in the 30 to 60% range on the margin.  If ROI drops below the 20% I close the trade.  Mostly I sell puts with daily monitoring of my trades and I don't have automatic stops.  I survived GTAT, LL, and my biggest drawdown to date, NFLX in which I got hammered BIG TIME and I am working around the loss.  Fortunately my account was able to take the hits as I am well diversified with 26 underlying stocks although I have to much of AAPL, which is my money tree.

    BTW, I had bilateral knee replacement 3 years ago (both done at the same time) and just played singles in a USTA tennis tournament.  I got beat but felt pretty good about how it went.  At one time I played a lot of tennis.  So, stay in there with the exercises and the knees will feel better with time and keep with the exercises and stretching.  Newt


  138. Yodi – I always read your posts, and have even followed a few of your trades. Please keep them coming.

    Newt – thanks for the knee info, I have one that gives me trouble, and am considering doing something about it.

    Phil – any word on our project? I'd like to keep it moving.

    Happy & safe holidays everyone!


  139. Hi all,

    Little announcement:  I got married yesterday!

    https://d1t5wsktj9xb9u.cloudfront.net/56/56/56/98382649/fullweb/MjI5MDY0NjIwODA3NTc2Njk2NzgzMDgwNDM3OTc3NjE0NTg1MTky.jpg

    Picture of my lovely wife and me dancing.


  140. yodi, hope you are coming along and tks for your post as i always learn something reading them….


  141. JPH:  CONGRATS!


  142. JPH wishing you the best of luck in your marriage. I just celebrated my 27th anniversary in March and so feel qualified to give you two pieces of advice that have served me well. The first is courtesy of my beautiful wife who after one of our first arguments said to me "would you rather be right or get laid!" So, advice #1 is; never get so stubborn that you have to keep fighting to prove you are right, which since you are a man, you probably are. She is never ever going to agree. no matter how logically you lay out your argument. Women are immune to logic. So let her be right and enjo a healthy sex life.

    Advice #2. Agree to let her make all the small decisions while you make all the big ones. I am certain that someday, before we hit out 50th anniversary there will be a big decision that she needs me to make. In the meantime we are very happy having her run the house and deal with the kids, making all those day to day decisions. I simply keep the money available and bills paid and all is well. 

    Seriously, always remember that a happy wife = happy life. If it becomes too hard for you to acknowledge your partner's point of view and you are always at odds, it will never last. All the rest is easy if you remember to let her be right as often as possible. Chances are it will make you a better person since women are generally better at relationship stuff than men. 


  143. Congrats JPH!


  144. craigs/immune to logic   Holy Smokes!!!  I'd consider you 'old school' but I've been very happily married longer than you!

    Like the Daughter we're raising, I want the Women in my life to be intelligent and logical with a solid view of the world around them. Yes, there needs to be a family CEO to lead the way, but this CEO never had any illusion of responsibilities and so my resume includes changing diapers, child rearing and damn good housecleaning. (these were important because I'm a terrible cook and like good food)…. and she does a mean bbq… :)

     

    You might be thinking "Man up 1020!"  but I feel it takes a Man to be willing to share all of his life and encourage Women that this is no longer just a Man's world with it's predictable responsibilities. This is a very important discussion to have, with any and all expectations (hopefully) discussed before the knot is tied.

     

    Life is full of uncertainty. While a fat life insurance policy is nice to have, I would much prefer leaving this world knowing the Women in my life are smart and awesome with little fear of a future without me.

     

    I mean, how much can sex make up for that?….. :)


  145. 1020- My comments were made with tongue firmly planted in cheek. However in all jest lies a morsel of truth.  So, yes there have been studies done that show women (not all but a majority statistically speaking) tend to be able to think in more abstract/complex ways and look at things from a feeling perspective. while men are more logical/analytical and tend to ignore feelings and focus on facts. This is certainly true for me and my wife.

     

     

    certainly true in my 


  146. JPH  What a nice couple. Congratulation. May your happy days last for the rest of your life.


  147. Newt. Thanks for your post. Guess we got all burned on these. Still hope I come even on NFLX. Hope they do not go for the sky. 


  148. JPH,  

    Congratulations to you and your bride!!  May you have the best of everything.

    FWIW. I can go on about marital harmony and how to get along.  In the end it comes down to having an honest concern and respect for each other, and knowing how to manage the relationship with love.

     My wife and I have been together for 54 years and she is a God send. Newt


  149. Well done, JPH, congratulations. Now if I could just convince my son to screw his courage to the sticking point and take that final step. His girlfriend has been renting a room in our backhouse since October (although they sleep apart out of respect for us old folks) and we really like her. She's what would've been called in older language, a "merry lass", and a very traditional Korean young woman besides. Interesting mix. Now if I could just find a way to ever-so-subtly shove him.

    And my wife and I have most of you beat for marital longevity – we married in 1974 (before you & your bride were born, JPH).


  150. Congratulations to you and the beautiful bride, JHP!


  151. craigs – I just wanted to give the young man a different perspective, without the tongue in cheek. Your comments left a smile on my face because that was the way I thought nearly 32 years ago. The time together with Lynn and the blessing of twins has helped to change the views I have today.

     

    Congrats on your 27 years of happiness – We're becoming something of a rare breed…..  :)


  152. Newt – Well said and congrats on your 54 years. There is something to be said about 'growing old' with the love of your life!


  153. Snow – Situation solved. Move into a condo….. ;)


  154. From Bloomberg, May 25, 2015, 11:03:25 AM
     

    Charter Communications Inc. is near an agreement to buy Time Warner Cable Inc. for $195 a share in cash and stock, according to people familiar with the matter.


  155. From Bloomberg, May 25, 2015, 10:14:29 AM

    Canadian stocks were little-changed, for a second day, as energy producers retreated in light trading due to public holidays in the U.S. and much of Europe while health-care stocks rose.


  156. From Bloomberg, May 25, 2015, 10:14:29 AM

    Canadian stocks were little-changed, for a second day, as energy producers retreated in light trading due to public holidays in the U.S. and much of Europe while health-care stocks rose.


  157. From Bloomberg, May 25, 2015, 10:13:47 AM

    The ECB, seen here, has said it intends to continue withdrawing its emergency measures, with some policy makers warning of the risks of leaving them in place too long. Photographer: Hannelore Foerster/Bloomberg

    The European Central Bank slowed purchases of public-sector bonds, even after saying it would accelerate buying before liquidity dries up during Europe’s summer vacation period.


  158. Hope everyone is having a nice Memorial Day.

    Excellent article on Watson:

    How Afraid of Watson Should we be?

    http://nymag.com/daily/intelligencer/2015/05/jeopardy-robot-watson.html


  159. Hope everyone is enjoying the holiday.

    Anybody have a recommendation for avtivirus/malware etc software?  Willing to endure some drag for software that works well.  Thanks.


  160. seer avg and malware are pretty good


  161. From Bloomberg, May 25, 2015, 11:29:44 AM

    Cash-strapped Greece needs to repay almost 1.6 billion euros ($1.76 billion) to the International Monetary Fund next month, an obligation Interior Minister Nikos Voutsis said the country can’t and won’t meet, if there’s no deal to unlock bailout funds in the meantime.


  162. From Bloomberg, May 25, 2015, 11:51:52 AM
      The Lamborghini SpA Urus sport-utility concept vehicle was unveiled during a Volkswagen AG event in Beijing, China, on Sunday, April 22, 2012. Lamborghini unveiled its first sport-utility vehicle in almost two decades as the Italian supercar maker looks to expand it lineup to tap rising demand from emerging markets. Lamborghini is a unit of Volkswagen. Photographer: Nelson Ching/Bloomberg

    Automobili Lamborghini SpA will build a new high-performance sport utility vehicle in Italy that may double the size of the supercar brand, after reaching a deal on tax breaks with Prime Minister Matteo Renzi’s government, said people familiar with the matter.


  163. From Bloomberg, May 25, 2015, 12:35:50 PM
      The Oriental Pearl Radio & TV Tower, left, and other buildings in Shanghai. Photographer: Tomohiro Ohsumi/Bloomberg

    Only in China can you predict the world’s biggest stock-market rally and still come out looking like a pessimist.


  164. From Bloomberg, May 25, 2015, 4:00:00 PM
      An espresso machine at a cafe in Sydney. Photographer: Marco Del Grande/Fairfax Media via Getty Images

    Australia is betting on plumbers and coffee-shop owners over scientists and researchers to drive the nation’s next wave of economic growth.


  165. From Bloomberg, May 25, 2015, 5:00:00 PM
      An oil processing facility in the Upper Nile, Sudan. Photographer: Trevor Snapp/Bloomberg

    After 17 months of civil war spanning a swathe of South Sudan bigger than Syria, President Salva Kiir’s survival may hinge on the fate of a single oil field.


  166. From Bloomberg, May 25, 2015, 9:24:58 PM

    A bottle maker in China said it won’t be able to fully repay a bond due May 28 as a slowdown in the world’s second-biggest economy persists.


  167. From Bloomberg, May 25, 2015, 9:03:58 PM

    The euro fell to the lowest in almost a month versus the dollar as Greek finance minister Yanis Varoufakis blamed creditors’ insistence on more austerity for the impasse over the release of financial aid.


  168. From Bloomberg, May 25, 2015, 8:17:22 PM

    Oil traded near $60 a barrel amid rising violence in the Middle East before OPEC meets to discuss its production quota next month.


  169. From Bloomberg, May 25, 2015, 8:14:42 PM

    Asia’s regional benchmark stock gauge headed for the first decline in four days, with South Korean shares slipping as the market reopened from a holiday. Healthcare and consumer companies led declines.


  170. From Bloomberg, May 25, 2015, 2:27:01 PM
     

    Greek officials will use Tuesday to revive their bid to access financial aid with their finance minister, Yanis Varoufakis, blaming creditors’ insistence on more austerity for the impasse.


  171. From Bloomberg, May 25, 2015, 7:50:13 PM

    Of late, the U.S. Supreme Court has become a regular target for the current crop of presidential candidates, but for two decidedly different issues.


  172. From Bloomberg, May 25, 2015, 1:01:46 PM
      Stanley Fischer, vice chairman of the U.S. Federal Reserve. Photographer: Pete Marovich/Bloomberg

    Federal Reserve Vice Chairman Stanley Fischer said central bankers are weighing the risk of raising interest rates prematurely against the danger of having to play catch-up if they wait too long.


  173. From Bloomberg, May 25, 2015, 9:29:40 PM

    China will likely prop up bondholders in any onshore defaults until August to ensure a smooth clean up of its local debt mess, according to Oversea-Chinese Banking Corp.


  174. From Bloomberg, May 25, 2015, 9:20:40 PM

    The Treasury yield curve flattened for a fourth day before data this week that may signal if the U.S. economy is strong enough to handle higher interest rates.


  175. From Bloomberg, May 25, 2015, 8:04:59 PM

    Japanese shares swung between gains and losses after the Topix index rose for a seventh day on Monday to close at the highest level since 2007.


  176. From Bloomberg, May 25, 2015, 7:17:14 PM

    Chinese stocks in Hong Kong surged toward a seven-year high, tracking gains in mainland shares. The euro extended losses, while nickel led a rally in industrial metals.


  177. From Bloomberg, May 25, 2015, 7:01:01 PM

    The Spanish Socialist Party, which held its ground in Sunday’s local election, plans to integrate the income and wealth taxes should it win this year’s general elections, a move to shield the middle class from tax increases.


  178. From Bloomberg, May 25, 2015, 12:02:02 PM
      Loretta Mester, president of the Federal Reserve Bank of Cleveland. Photographer: Marlene Awaad/Bloomberg

    Accelerating inflation and strong employment growth are pushing the U.S. economy close to the point where it can support higher interest rates, Federal Reserve Bank of Cleveland President Loretta Mester said.


  179. From Bloomberg, May 25, 2015, 7:25:35 AM
      Greece’s Prime Minister Alexis Tsipras. Photographer: Kostas Tsironis/Bloomberg

    The Greek government is priming investors for another cliffhanger on June 5.


  180. From Bloomberg, May 25, 2015, 7:00:25 PM

    Add dollar weakness to the list of forces weighing on U.S. bonds.


  181. From Bloomberg, May 25, 2015, 6:00:01 PM

    People demonstrate against Goldman Sachs’s purchase of Dong Energy in front of the Danish Parliament on Jan. 29, 2014. Photographer: Jeppe Bjoern Vejloe/AFP/Getty Images

    More than a year after Denmark’s ruling coalition split apart amid a clash over Goldman Sachs’s purchase of state assets, the case refuses to die.


  182. From Bloomberg, May 25, 2015, 12:51:29 AM
     

    Commodities will reverse a rally that started in March as a stronger U.S. dollar, cheaper oil and cooling China again pressure raw materials, especially copper, according to Goldman Sachs Group Inc.


  183. From Bloomberg, May 25, 2015, 2:03:51 AM

    Emerging-market stocks fell and currencies declined for a sixth day as concern grew the U.S. will raise interest rates. Polish shares dropped after an opposition candidate won the presidential election.


  184. From Bloomberg, May 25, 2015, 7:01:00 PM
     

    For Mark Carney, practice makes perfect.


  185. From Bloomberg, May 26, 2015, 2:11:31 AM

    European stocks fluctuated as investors weighed the prospects for higher U.S. rates this year, while Ryanair Holdings Plc rose. Some markets reopened after holidays.


  186. From Bloomberg, May 26, 2015, 5:00:00 AM

    JPMorgan Chase & Co. put allegations of currency-fixing largely behind it with a guilty plea, but it’s not out of the woods yet.


  187. From Bloomberg, May 26, 2015, 4:59:36 AM

    Italy’s credit market is benefiting from the European Central Bank’s quantitative easing program, Bank of Italy Governor Ignazio Visco said.


  188. From Bloomberg, May 26, 2015, 4:46:46 AM
      The International Monetary Fund’s Deputy Director of Asia and Pacific Markus Rodlauer. Photographer:ChinaFotoPress via Getty Images

    The International Monetary Fund officially dropped its long-held view that the yuan is undervalued, strengthening China’s case for the currency to win reserve status at the lender.


  189. From Bloomberg, May 26, 2015, 4:13:23 AM

    U.S. stock-index futures declined, indicating equities will fall for a second day as the market reopens after a holiday.


  190. From Bloomberg, May 26, 2015, 4:03:11 AM

    U.K. stocks fell for the first time in six days, reopening after a holiday.


  191. From Bloomberg, May 26, 2015, 4:00:00 AM

    The rapid rate of wealth creation by billionaire entrepreneurs will probably level off over the next two decades as economic growth slows in emerging markets and governments act against income inequality, a study found.


  192. From Bloomberg, May 26, 2015, 3:00:00 AM

    The value of global carbon trading expanded to $34 billion in the past year, with gains led by South Korea, California and Quebec, the World Bank said.


  193. From Bloomberg, May 26, 2015, 2:32:06 AM
     

    Italian government bonds dropped the most in a week as Greece’s Finance Minister Yanis Varoufakis blamed creditors’ insistence on more austerity for the lack of a deal that would release much-needed funds to the indebted nation.


  194. From Bloomberg, May 26, 2015, 12:00:01 AM
      Janet Yellen, chair of the U.S. Federal Reserve. Photographer: Scott Eisen/Bloomberg

    Forget 2015. The real play for bond traders is 2016.


  195. From Bloomberg, May 25, 2015, 9:30:08 PM

    Chinese stocks rallied, with the Shanghai Composite Index completing its biggest six-day advance since November 2008, on optimism government plans to boost foreign access to the nation’s markets will spur inflows.


  196. 10 things in tech you need to know today


    businessinsider.com / James Cook

    Good morning! Here’s the tech news you need to know today. 1. Apple design chief Jony Ive has been promoted to chief design officer. Two executives in …


  197. Switzerland Publishes Tax Evader List


    forbes.com / Robert W. Wood

    The Swiss government and hundreds of Swiss banks have been roiled by the U.S. crackdown on American tax evaders. With six years of almost non-stop hits …


  198. From Bloomberg, May 26, 2015, 3:27:25 AM
     

    The El Nino taking hold across the Pacific strengthened, according to Australia’s Bureau of Meteorology, citing indexes of sea-surfaces temperatures that showed the same trend for the first time since the event in 1997-1998.


  199. Weak productivity turns into a problem of global proportions


    ft.com / Chris Giles in London and Sam Fleming in Washington

    Output per worker grew last year at its slowest rate since the millennium, with a slowdown evident in almost all regions, underscoring how …


  200. Relax, the Terminator Is Far Away


    nytimes.com / JOHN MARKOFF

    In glossy sci-fi movies like “Ex Machina” and “Chappie,” robots move with impressive — and frequently malevolent — dexterity. They appear to confirm the…


  201. Chinese Stocks Are Now Up Over 100% Year-To-Date
    http://www.zerohedge.com/news/2015-05-25/chinese-stocks-are-now-over-100-year-date

    Related topics: Stocks, Asia, China

    Sent via Flipboard, your personal magazine.
    Get it for free to keep up with the news you care about.


  202. Productivity: It’s a drag


    ft.com / Sam Fleming and Chris Giles

    Drew Greenblatt surveys the shop floor of his small factory in a down-at-heel district of Baltimore, Maryland, where two workers are using …


  203. Kim Jong-un claims 'photoshopped' North Korea missile launch was 'eye-opening miracle'


    telegraph.co.uk / Andrew Marszal, and Agencies

    North Korean leader praises test of submarine-launched missile as “historic event” – despite experts claiming launch was manipulated by state media Nort…


  204. Austerity Is the Only Deal-Breaker


    project-syndicate.org

    ATHENS – A common fallacy pervades coverage in the world’s media of the negotiations between the Greek government and its creditors. The fallacy, exempl…


  205. Charter nears $55-billion deal to buy Time Warner Cable


    latimes.com / Meg James

    Charter Communications is poised to scoop up Time Warner Cable in a $55-billion deal that would make it the largest pay-TV provider in Southern Californ…


  206. China gets a new billionaire every week


    cnn.com / Sophia Yan

    Wealthy Chinese are getting even richer really fast. A new billionaire was created almost every week in China in the first quarter of 2015, according to…


  207. 10 things you need to know before European markets open


    businessinsider.com / Mike Bird

    Good morning! Here’s the potentially market-moving news you should know about this morning. Greece’s interior minister says the country won’t make a Jun…


  208. Banks' profits recover, but they are paying less in corporation tax


    telegraph.co.uk / James Titcomb

    Research shows corporation tax receipts from banks are lower than before crisis despite global tax payments staying constant Britain’s banks are paying …


  209. Inside the fried-chicken wars: KFC vs. Chick-fil-A


    chicagotribune.com / Drew Harwell

    These are dark days for KFC’s once-dominant chicken empire. After five years of crumbling sales, the extra crispy mega-chain, which in 2012 lost its thr…



  210. reuters.com

    HERZLIYA, Israel (Reuters) – U.S. Federal Reserve Vice Chairman Stanley Fischer said it was “misleading” to give so much importance to the Fed’s first i…



  211. foxbusiness.com / Leo Sun

    Google ‘s worst nightmare is coming true: a mobile browser that blocks the ads it generates revenue from. Eyeo GmbH , the German company that developed…


  212. Europe stocks stumble, dollar lifted by U.S rate view


    businessinsider.com / Emelia Sithole-Matarise, Reuters

    By Emelia Sithole-Matarise LONDON (Reuters) – European shares fell in thin trade on Monday while the dollar powered ahead after U.S. Federal Reserve Cha…



  213. reuters.com

    SHANGHAI (Reuters) – China’s state planning agency on Monday released a list of more than 1,000 proposed projects totalling 1.97 trillion yuan ($317.75 …


  214. Shocker: 40% of Workers Now Have 'Contingent' Jobs, Says U.S. Government


    forbes.com / Elaine Pofeldt

    Tucked away in the pages of a new report by the U.S. General Accounting Office is a startling statistic: 40.4% of the U.S. workforce is now made up of c…



  215. apnewsarchive.com

    BEIJING (AP) — China announced Monday it will cut import taxes on clothing, cosmetics and some other goods by half in a new tactic to spur consumer spen…


  216. Barrick to sell Australian gold mine to Evolution in $550-million deal


    theglobeandmail.com / David Stringer

    Evolution Mining Ltd. agreed to pay $550-million for Barrick Gold Corp.’s Cowal mine in Australia’s New South Wales to add what it said is a “world-clas…


  217. The China Bubble That Wasn't


    forbes.com / Kenneth Rapoza

    The world wanted China to go capitalist, did it not? Well, welcome to capitalism, people. When a country as powerful and as large as China is allowing f…


  218. Ashley Madison: Is infidelity a billion-dollar business? - BBC News


    bbc.co.uk / Kim Gittleson BBC business reporter, New York

    Noel Biderman sounds like your run-of-the-mill technology chief executive: he peppers his speech with words like “disruption” and of course, his start-u…


  219. European Central Bank Expands Mandate as It Struggles to Keep Zone Intact


    nytimes.com / JACK EWING

    SINTRA, Portugal — Only a few years ago, the European Central Bank was regarded as relatively powerless when compared with its counterpart in the United…


  220. Google, retail earnings -- 5 things to watch in the week ahead


    fortune.com / BY VERNE KOPYTOFF

    Everything you need to know in the week ahead: A big tech conference, big earnings and big news on home prices. Hello friends and Fortune readers, Des…



  221. reuters.com

    NEW YORK (Reuters) – U.S. Senator Elizabeth Warren is calling for U.S. Department of Labor hearings on whether banks accused of rigging foreign exchange…


  222. The Most Loved (and Hated) Airlines in America


    time.com / Dara Continenza / Hopper

    Ranked by number of passenger complaints According to a March 2015 report from the U.S. Department of Transportation, American flyers really, really lik…


  223. LAX predicts a record in summer travelers: 24.6 million


    latimes.com / Hugo Martin

    Los Angeles International Airport is expected to be even more crowded than usual this summer when it serves a record 24.6 million passengers. The nation…



  224. foxbusiness.com / Brian Stoffel

    Can you find contentment in the world’s happiest countries? Source: Sandy Chase via Wikimedia Commons. The United Nations recently released its World Ha…



  225. reuters.com

    LONDON (Reuters) – Finance ministers from the world’s largest developed economies meet in Germany this week against a backdrop of faltering global growt…


  226. Insurers Blasted for Not Giving Low-Mileage Discounts


    nbcnews.com / Herb Weisbaum

    A national consumer group says people who drive less aren’t getting the price breaks they deserve from most of the big auto insurance companies. A new s…


  227. Half of college graduates expect to be supported by their families


    marketwatch.com / Quentin Fottrell

    Parents seem to be more lenient about letting their graduate children come back home. American college graduates — and their parents — appear to be incr…


  228. Chart of the day: The five generations of iPhone


    fortune.com / BY PHILIP ELMER-DEWITT

    Two of my favorite independent analysts, Asymco’s Horace Dediu and Above Avalon’s Neil Cybart, each took a crack this week at breaking the iPhone’s inst…


  229. Bike-share programs are expanding worldwide. Are they successful?


    washingtonpost.com / Perry Stein

    Washington’s Capital Bikeshare system has been in business for nearly five years. Barcelona’s bike-share program opened in 2007. And New York City’s rel…


  230. Here are the cities that need a $15 minimum wage the most


    fortune.com / BY CLAIRE ZILLMAN

    Californian cities have plenty of work to do. The Los Angeles City Council this week voted 14-1 to pass a $15 minimum wage for the city. The hike, which…


  231. Is the party over for real estate investing?


    cnn.com / Heather Long

    Real estate has been one of the best performing assets since President Obama took office. No, we’re not talking about regular people’s homes. The bigges…


  232. Five global banks just proved that no one can stop Wall Street from breaking the law


    businessinsider.com / Portia Crowe

    This week, five Wall Street banks pleaded guilty to felony charges related to interest rate rigging and foreign exchange manipulation. The guilty pleas …


  233. These states rob from the poor and give to the rich


    washingtonpost.com / Christopher Ingraham

    The federal tax code is a powerful tool for reducing income inequality: in general, high-earners are taxed at higher rates than low-income people, with …


  234. More investors think U.S. stocks are going nowhere fast


    marketwatch.com / Tomi Kilgore

    Retail investors surveyed by the American Association of Individual Investors who are neutral on stocks hit the highest level in 12 years at the same ti…


  235. Bacon Prices Plummet After Hitting All-Time High


    huffingtonpost.com / Joe Satran

    Bacon prices rose consistently for nearly five years, reaching an all-time high of $6.11 a pound in June 2014. But now they’ve finally started to drop. …


  236. Why economists think the Trans-Pacific Partnership will be good for Americans


    pri.org / PRI’s The World

    Discussing trade deals is generally about as exciting as watching grass grow, but a huge new pact called the Trans-Pacific Partnership is firing up publ…


  237. Here’s What Happened After CVS Stopped Selling Cigarettes


    time.com / Todd Campbell / Motley Fool

    How it’s making up for billions in lost sales. Last fall, CVS Health Corp CVS HEALTH CORPORATION CVS 0.25% made national news when it announced that it …


  238. Apple Is Planning a Major International Launch for Beats Music


    inc.com / Rob Price

    WIRE Russia reportedly will be among the first countries where the tech titan will roll out its music streaming service later this year. Apple is planni…


  239. The Great Decoupling: An Interview with Erik Brynjolfsson and Andrew McAfee


    hbr.org / Amy Bernstein

    Machines, it seems, can do almost anything human beings can. Now cars are even starting to drive themselves. What does that mean for business and employ…



  240. The Factors That Lead to High CEO Pay


    hbr.org / Gretchen Gavett

    No matter where you live, the difference between how much CEOs are paid and how much the average worker takes home is, well, big. Probably even bigger t…


  241. When Your Boss Wears Metal Pants


    hbr.org / Walter Frick

    At a 2013 robotics conference the MIT researcher Kate Darling invited attendees to play with animatronic toy dinosaurs called Pleos, which are about the…


  242. Is Rooftop Solar Finally Good Enough to Disrupt the Grid?


    hbr.org / Nathan Richter

    Over the past two decades, there have been many attempts to reform the electric utility market. The costly and complex operations of transporting energy…


  243. Chinese Distiller Sued in Test of State Vs. Private Ownership


    nytimes.com / VANESSA PIAO

    Many of China’s high-end liquor producers have experienced difficulties since President Xi Jinping assumed power more than two years ago and opened a ca…


  244. Goldin shares continue rollercoaster ride


    ft.com / Patrick McGee in Hong Kong

    Shares in the two divisions of Hong Kong’s Goldin Group continued their rollercoaster ride on Tuesday, with both seeing significant climbs …


  245. Not persuaded


    economist.com

    IT IS almost impossible to change people’s opinions on divisive political issues by arguing with them. This is rather depressing for opinion journalists…


  246. America's poor are 'envy of the world,' says richest Congressman


    cnn.com / Tami Luhby

    Darrell Issa, the richest man in Congress, said America has made “our poor somewhat the envy of the world.” Asked by CNNMoney whether he feels personall…


  247. Cheap oil fails to spark consumer spending boom


    ft.com / Ferdinando Giugliano in London and Sam Fleming in Washington

    Call it the mystery of the missing oil money. When the price of Brent crude more than halved in the second half of last year, many predicted …


  248. Whoosh! Dollar blasting higher against yen - fastFT: Market-moving news and views, 24 hours a day


    ft.com

    The dollar began the first proper day of trading since the weekend looking like it might give the yen a run for its money. Now it’s on a …



  249. wallstreetexaminer.com

    This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Liquidity, the “life blood” that all…



  250. wallstreetexaminer.com

    This is a syndicated repost courtesy of New Economic Perspectives. To view original, click here. Few people’s efforts at myth-making have been as devast…


  251. Here's How Much Inflation April CPI Didn't Measure


    wallstreetexaminer.com

    First, let’s get the headline number out of the way. The media reported last week that the inflation rate in April on a seasonally adjusted (SA) month t…


  252. Private equity begins to entice ordinary investors


    ft.com / Stephen Foley

    Beyond the public markets, where company share prices blink on trading screens on a second-by-second basis, there is a world of private …



  253. nytimes.com / KENNETH CHANG

    John F. Nash Jr. was best known for advances in game theory, which is essentially the study of how to come up with a winning strategy in the game of lif…


  254. Americans are aging, but not as fast as people in Germany, Italy and Japan


    pewresearch.org / Gretchen LivingstonLeave a comment

    A new Pew Research Center report shows that in the United States, the share of people aged 65 or older will rise dramatically by 2050. However, the U.S….


  255. With Money Drying Up, Greece Is All but Bankrupt


    nytimes.com / LANDON THOMAS Jr.

    ATHENS — Bulldozers lie abandoned on city streets. Exhausted surgeons operate through the night. And the wealthy bail out broke police departments. A ne…


  256. In Cable Deal, Charter Seeks National Heft


    nytimes.com / SYDNEY EMBER

    It was only 15 months ago that Charter Communications looked like a big loser in the race to add heft in the cable and broadband industry. Comcast, a ri…


  257. Good morning! 

    Greece broken and then fixed this morning – that's why the Futures were so violent.  Also, Dollar spiked up to 97.23 on IMF comments re. China's Yuan being fully valued (ie, won't get stronger vs Dollar). 

    I hope everyone had a good weekend, I got caught up downloading my weekend reading but time to write post so please re-ask anything important in new post. 


  258. OHI/Phil, What do you think about these guys? REIT in healthcare facilities. Director bought 100,000 shares on May 5th. Should be a growing area. Thinking of selling 2017 32 puts for 8.15 or so.


  259. I almost could not read to the end of that NY Times article.  This cannot end well for either side.