Archive for 2017

Latest Projections Show Hurricane Irma Headed For Florida

Courtesy of ZeroHedge. View original post here.

As Hurricane Irma continues to move  west as a Category three storm, in what still is said to be an indeterminate path, according to the latest projections from Met Scientist Michael Ventrice, it now looks like Florida has the highest probability of a US landfall…

Latest 12Z Calibrated ECMWF Ensembles indicates that Florida now has the highest probability to see Hurricane #Irma impacts/landfall ????

— Michael Ventrice (@MJVentrice) September 3, 2017

…though that doesn’t mean the Gulf of Mexico can rest easy. Hurricane forecasting is notoriously inaccurate one or two weeks out…

Not a shift in guidance anyone wanted to see. Looks like #Irma threat growing again for Gulf States. Forecast remains extremely difficult

— Michael Ventrice (@MJVentrice) September 3, 2017

Before it nears the US, however, the storm is headed toward the Northern Caribbean, threatening to bring flooding rain and damaging winds to the Leeward Islands. Preparations for the storm should already be taking place in these areas, according to

“Rain and gusty winds may start as early as Tuesday,” AccuWeather Senior Meteorologist Rob Miller said.

According to Accuweather, Irma’s intensity has vacillated over the past few days. But the storm is expected to strengthen to a category four hurricane with sustained winds of 130-156 mph as it approaches the islands. Thereafter, the storm will turn to the north and west over the coming days. This track will put Antigua and Barbuda, Montserrat, St. Kitts and Nevis, Anguilla and the British Virgin Islands, in the brunt of the storm's rain and wind spanning Tuesday and Wednesday.

Hurricane watches issued for portions of the Leeward Islands. Latest information on #Irma available at

— NHC Atlantic Ops (@NHC_Atlantic) September 3, 2017

Cruise and shipping vessels in the hurricane’s path will need to reroute.

continue reading

China Battles “Impossible Trinity”

Courtesy of ZeroHedge. View original post here.

Authored by James Rickards via Daily Reckoning blog,

Just because something is inevitable does not mean it cannot be postponed.

The popular name for this is “kicking the can down the road,” which is a perfectly good description.

I prefer more technical terms such as dynamic systems in “subcritical” and “supercritical” state space, but it amounts to the same thing.

A financial crisis can be a long time in the making, but it will definitely erupt. When it does, there will be huge losses for those who ignored the warning signs.

China is in a pre-crisis situation today.

It is confronting the harsh logic of the “Impossible Trinity.”

The Impossible Trinity theory was advanced in the early 1960s by Nobel Prize-winning economist Robert Mundell. It says that no country can have an open capital account, a fixed exchange rate and an independent monetary policy at the same time.

You can have one or two out of three, but not all three. If you try, you will fail – markets will make sure of that.

Those failures (which do happen) represent some of the best profit-making opportunities of all.

Understanding the Impossible Trinity is how George Soros broke the Bank of England on Sept. 16, 1992 (still referred to as “Black Wednesday” in British banking circles. Soros also made over $1 billion that day).

The reason is that if more attractive total returns are available abroad, money will flee a home country at a fixed exchange rate to seek the higher return. This will cause a foreign exchange crisis and a policy response that abandons one of the three policies.

But just because the trinity is impossible in the long run does not mean it cannot be pursued in the short run. China is trying to peg the yuan to the U.S. dollar while maintaining a partially open capital account and semi-independent monetary policy. It’s a nice finesse, but isn’t sustainable.

China cannot keep the capital account even partly closed for long without drying up direct foreign investment. Similarly, China cannot raise interest rates much higher without bankrupting state-owned enterprises.

continue reading

This sector will leap if there’s a U.S.-China trade war

By marcuss. Originally published at ValueWalk.

In case you can’t see the graphic on your screen, it reads, “Trump set to launch first major trade action targeted at China”.

This was the first shot in what will likely be trade war with the world’s second-largest economy – which also happens to be a crucial party to de-escalating tensions with North Korea.

Get The REITs eBook in PDF

Get our PDF study on REITs and our other investor studies! Save it to your desktop, read it on your tablet, or email to your colleagues.

We respect your email privacy

Timeless Reading eBook

Robert_z_Ziemi / Pixabay

Getting into a trade tussle with China is a Trump campaign promise that’s relatively easy to keep, as it doesn’t require the cooperation of anyone else in the U.S. government.

It also caters to the sentiments of the 34 percent of Americans who approve of the U.S. president’s job performance. And it’s over an issue where the U.S. actually has a legitimate gripe, no less. The Financial Times explains…

“Donald Trump is set to launch his first major trade action targeted at China… by ordering his top trade negotiator to begin an investigation into intellectual property rules that Beijing uses to force foreign investors to turn over valuable technologies.”

And (also says the FT), “The step could lead to US tariffs and other restrictions on Chinese imports within a year in what many see as the potential first step towards a trade war between the world’s two largest economies.”

The measure came a few weeks after negotiations over a Chinese proposal to cut steel production overcapacity were rejected by President Trump, over the counsel of his advisors – because he preferred to impose tariffs on Chinese steel.

The timing of the launch of a trade war with China could hardly be worse, as the war of words with North Korea threatens to become a real war. Still, cracking down on intellectual property violations…
continue reading

VIX Set For Lowest Annual Average Ever, But…

Courtesy of ZeroHedge. View original post here.

While intra-month the CBOE Volatility Index reached its highest since November, before plunging back to earth into the end of the month, VIX is still on track to post its lowest annual average on record.

Bloomberg notes that in the past decade, VIX gains in August were followed by September declines in all but one instance.

While VIX has collapsed so far this year, it may not last.

Though VIX ended up paring its August gain to 3.2% – a gauge tracking longer-term wagers posted its biggest increase since January 2016.

In fact, after last month’s 11 percent gain, the CBOE S&P 500 3-Month Volatility Index has reached its highest level relative to the VIX since Aug 2012's European credit crisis.

The September Federal Reserve gathering and debt-ceiling discussions are among events that could lead to increased market volatility at a time when the S&P 500 Index trades near a record high.

China Raises Radiation Threat Level, Begins “Emergency Monitoring” Along North Korean Border

Courtesy of ZeroHedge. View original post here.

Shortly after North Korea conducted what’s believed to be its first successful test of a hydrogen bomb (and its sixth nuclear test in total), China’s Nuclear Safety Administration said on Sunday that it would begin emergency monitoring for radiation along its northeastern border with North Korea, according to Reuters.

The emergency response was set at “level 2,” the second-highest grade on a four-tier system, according to the Times of Japan. The NSA did not indicate whether any radiation had been detected.

“’At present, the automatic radiation monitoring stations in the provinces of Heilongjiang, Jilin, Liaoning and Shandong are functioning properly,’ Xinhua reported, citing the Ministry of Environmental Protection, which administers the safety agency.”

Earlier in the day, the presidents of China and Russia agreed to “appropriately deal with” North Korea’s sixth and most powerful nuclear test, according to the South China Morning Post. Beijing strongly condemned Pyongyang’s actions and threatened to work with the United Nation’s Security Council to add sanctions. The agreement came as Chinese President Xi Jinping met his Russian counterpart Vladimir Putin on Sunday night in Xiamen, Fujian province, ahead of Monday’s BRICS leaders’ summit, according to the SCMP.

The test late Sunday morning triggered a 6.3-magnitude quake followed by a 4.6-magnitude tremor, and was felt throughout northeastern China.

Here’s more from the SCMP:

“The Chinese government resolutely opposes and strongly condemns this,” the Chinese foreign ministry said after North Korea confirmed the test.

“We urge North Korea to recognise the determination of the international community to achieve a denuclearised Korean peninsula … and to return to the path of resolving conflicts through dialogue,” it said adding that China will continue to implement UN sanctions against Pyongyang in ‘comprehensive manner.’”

As one analyst who spoke with the SCMP suggested, the North may have timed its nuclear test to coincide with the BRICS conference that begins tomorrow in Xiamen. World leaders from some of the world’s largest emerging-market countries have traveled to China for the conference, and by testing the nuke Sunday, not only did the North overshadow the conference, which was supposed to be about economic issues, but it also provided world leaders with a first-hand look at its nuclear capabilities.

Trump Commits To Using “Nuclear Capabilities” To Defend US Terroritory, Allies

Courtesy of ZeroHedge. View original post here.

In what we believe is a significant escalation and potentially a hint as to the president's thinking, President Trump said during a phone call with Japanese Prime Minister Shinzo Abe that the US remains committed to defending its territories and allies using all "diplomatic, conventional and – here's the big one – nuclear – capabilities at our disposal." This is the first time Trump has explicitly referenced possible involvement of nuclear weapons in a US response to its isolated antagonist, and also means that the two world leaders discussed the possibility of a nuclear response.


The White House released a statement about what the two leaders discussed on the call. It’s available in full below:

JUST IN: White House issues statement on call between President Trump and Japan's Prime Minister Shinzo Abe

— NBC News (@NBCNews) September 3, 2017

The call was held to discuss how the two countries should respond to North Korea's sixth nuclear test – and possibly its first successful test of a hydrogen bomb. The test came after multiple provocations from the North over the past week, including two missile tests. Earlier, Defense Secretary James Mattis, using the couched language of international diplomacy, said any threat to the US or its territories would be met with a “massive military response.”

The full White House statement on the 6th North Korean nuclear test, as delivered by Mattis shortly after 3pm ET, is below:

"Any threat to the US or its territories including Guam or our allies will be met with a massive military response, a response both effective and overwhelming. Kim Jong Un should take heed in the United Nations' Security Council's unified voice. All members unanimously agreed on the threat North Korea poses and they remain unanimous in their commitment to the denuclearization of the Korean peninsula. We are not looking to the total annihilation of a country, namely North Korea, but as I said we have many options to do so."

China also strongly criticized the nuclear

continue reading

How Welfare States Encourage Bad Economic Thinking

Courtesy of ZeroHedge. View original post here.

Authored by Jakub Bozydar Wisniewski via The Mises Institute,

The greatest intellectual accomplishment of the laissez-faire liberal theorists was the recognition of the “hard” and “soft” institutions that are crucial prerequisites of productive accomplishment and material prosperity. The hard institutions include private property rights, market prices, and sound money. The soft institutions include those that reinforce values such as prudence, thrift, resourcefulness, innovative courage, and respect for success.

However, this accomplishment was accompanied by a proportionately great intellectual error – the belief that these institutions can be safeguarded exclusively by monopolistic apparatus of aggressive violence, commonly known as states. Since states necessarily parasitize on the productive output of market society, the belief that they are necessary for its emergence, let alone that they can remain “minimal” after its emergence, is fatally misguided. On the contrary, it appears perfectly predictable that they will grow in step with the increase in market output.

Unfortunately, this is not the end of the story. As powerful as states may be in terms of sheer physical force, their survival is ultimately rooted in favorable public opinion, and the best way to secure such opinion is to share their plunder as widely as possible. Thus, with sufficiently wealthy hosts at their disposal, states invariably turn into “welfare” states. And it is at this point that they start sawing off the branch on which they are sitting.

With productive achievement institutionally separated from consumption opportunities, the wealth-generating soft institutions start to erode particularly fast. When there is great abundance all around, but it seems that it can be enjoyed without putting in any productive effort, increasingly many of those who do not so enjoy it come to believe that abundance is a free good, and that the only reason why it is not free for them is because someone unfairly withholds it from them.

In other words, the prevalence of welfare-statist “redistribution” spells the death of economic thinking – that is, thinking in terms of resource scarcity, opportunity costs, and incentive structures. This temporarily strengthens the state even further – since at this point the state immediately steps in as an entity that is able and willing to punish the malevolent withholders – but it also further accelerates the

continue reading

Gold Pops, Stocks Drop As Futures Open After Korean Chaos

Courtesy of ZeroHedge. View original post here.

In an echo of last week's move following North Korea's teating of missiles across Japan's territory, futures markets are opening in a decidedly risk-off mannwr following North Korea's "hydrogen bomb" test. Dow Futs down 100 points, Gold jumping and Treasury bonds bid…

Gold is back above $1340…

USDJPY broke below 110.00

Of course, what happens next is anyone's guess as last week saw the BTFDers panic-buy stocks to their best week in 10 months1

What makes a country great in the first place?


What makes a country great in the first place?

Courtesy of 

My real name is Braun. It’s the German word for Brown. When my people came through Ellis Island, it was changed from Braun to Brown, even though the two words mean the same thing.

In 1990, I was Bar Mitvzah’d by Rabbi Brown. We’re not related. But he explained the story of why so many Jews in America have colors in their surnames.

Here’s a list of colors in German.

  • schwarz – black.
  • weiss – white.
  • rot – red.
  • gelb – yellow.
  • blau – blue.
  • grün – green.
  • braun – brown.

Now think about the names: Goldberg and Greenstein and Silverman and Schwartzman and Weiss and Gelbaum and Grunwald and Rothman, etc.

In Hungary during the 19th century, as in many other Eastern European countries at that time, Jews were confined into specific areas of the cities. The Italians called them ghettos. In these ghettos, the area was divided up into quadrants, so that the residents could be tracked and monitored. You lived in the white quadrant or the brown quadrant or the greenor the gold. Then, when an authority asked you where you belonged, you would tell them the color. This is where the last names came from.

When they came over, the Weisses and Schwartzes kept their names while the Rots and the Brauns had theirs anglicized.

My ancestors came here from Hungary, but also from Ireland and from Germany – that I am aware of. And probably lots of other places too. If you’re reading this and you’re an American in 2017, it’s most likely that your ancestors didn’t arrive on the Mayflower either.

The fact that people from all over the world have been able to come here, cooperate and create things is what made America great, going back to the very beginning. America didn’t start out great and then just take in all kinds of people. It’s the people who were taken in that made it this way.

Bret Stephens reminds us of this in a new column at the New
continue reading

South Korea Holds Ballistic Missile Drill “Targeting North Korea Nuclear Test Site”

Courtesy of ZeroHedge. View original post here.

As has become custom, shortly after North Korea engages in some provocative activity, in this case its first ever hyrdogen bomb test, South Korea has traditionally responded with its own military drill, and today was no difference, with Yonhap reporting "that South Korea's military said Monday it conducted a combined live-fire exercise targeting North Korea's nuclear test site."

To be sure, it's not exactly clear how a "drill" can "target" a foreign military site, but we'll assume someone just used Google translate in this case.

As Yonhap adds, the training came in response to the North's sixth nuclear test a day earlier, and involved the country's Hyunmoo ballistic missile and the F-15K fighter jets.

In the drill, the Hyunmoo surface-to-surface missile and the F-15K's long-range air-to-ground missile accurately hit designated targets in the East Sea, according to the Joint Chiefs of Staff (JCS).

The South's military, in particular, said the range to the simulated targets were set in consideration of the North's Punggye-ri nuclear test site in its northeastern province.

The Hyunmoo was unveiled for the first time one week ago, when South Korea released the following video clip showing the test-firing of the 500-kilometer-range ballistic missile.



#1 Performing Global Macro Hedge Fund Sees More Shorts Opportunities Ahead As China Bursts

By Jacob Wolinsky. Originally published at ValueWalk.

Crescat Global Macro Fund update to investors on 1/19/2019

Crescat Global Macro Fund and Crescat Long/Short fund delivered strong returns for both December and full year 2018 in a difficult market. Based on ...

more from ValueWalk

Zero Hedge

Johns Hopkins, Bristol-Myers Face $1 Billion Suit For Infecting Guatemalan Hookers With Syphilis 

Courtesy of ZeroHedge. View original post here.

A federal judge in Maryland said Johns Hopkins University, pharmaceutical company Bristol-Myers Squibb and the Rockefeller Foundation must face a $1 billion lawsuit over their roles in a top-secret program in the 1940s ran by the US government that injected hundreds of Guatemalans with syphilis, reported Reuters.

Several doctors from Hopkins an...

more from Tyler

Phil's Favorites

Divisive economics


Guest author David Brin — scientist, technology consultant, best-selling author and futurist — explores the records of Democrats and Republicans on the US economy in the following post. For David's latest posts, visit the CONTRARY BRIN blog. For his books and short stories, visit his web...

more from Ilene

Kimble Charting Solutions

Stock declines did not break 9-year support, says Joe Friday

Courtesy of Chris Kimble.

We often hear “Stocks take an escalator up and an elevator down!” No doubt stocks did experience a swift decline from the September highs to the Christmas eve lows. Looks like the “elevator” part of the phrase came true as 2018 was coming to an end.

The first part of the “stocks take an escalator up” seems to still be in play as well despite the swift decline of late.

Joe Friday Just The Facts Ma’am- All of these indices hit long-term rising support on Christmas Eve at each (1), where support held and rallies have followed.

If you find long-term perspectives helpf...

more from Kimble C.S.

Digital Currencies

Transparency and privacy: Empowering people through blockchain


Transparency and privacy: Empowering people through blockchain

Blockchain technologies can empower people by allowing them more control over their user data. Shutterstock

Courtesy of Ajay Kumar Shrestha, University of Saskatchewan

Blockchain has already proven its huge influence on the financial world with its first application in the form of cryptocurrencies such as Bitcoin. It might not be long before its impact is felt everywhere.

Blockchain is a secure chain of digital records that exist on multiple computers simultaneously so no record can be erased or falsified. The...

more from Bitcoin

Insider Scoop Explores Strategic Alternatives, Analyst Sees Possible Sale Price Around $30 Per Share

Courtesy of Benzinga.

Related 44 Biggest Movers From Yesterday 38 Stocks Moving In Wednesday's Mid-Day Session ... more from Insider

Chart School

Weekly Market Recap Jan 13, 2019

Courtesy of Blain.

In last week’s recap we asked:  “Has the Fed solved all the market’s problems in 1 speech?”

Thus far the market says yes!  As Guns n Roses preached – all we need is a little “patience”.  Four up days followed by a nominal down day Friday had the market following it’s normal pattern the past nearly 30 years – jumping whenever the Federal Reserve hints (or essentially says outright) it is here for the markets.   And in case you missed it the prior Friday, Chairman Powell came back out Thursday to reiterate the news – so…so… so… patient!

Fed Chairman Jerome Powell reinforced that message Thursday during a discussion at the Economic Club of Washington where he said that the central bank will be “fle...

more from Chart School

Members' Corner

Why Trump Can't Learn


Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...

more from Our Members


Opening Pandora's Box: Gene editing and its consequences

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


Opening Pandora's Box: Gene editing and its consequences

Bacteriophage viruses infecting bacterial cells , Bacterial viruses. from

Courtesy of John Bergeron, McGill University

Today, the scientific community is aghast at the prospect of gene editing to create “designer” humans. Gene editing may be of greater consequence than climate change, or even the consequences of unleashing the energy of the atom.


more from Biotech

Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...

more from M.T.M.


Swing trading portfolio - week of September 11th, 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 ...

more from OpTrader


Free eBook - "My Top Strategies for 2017"



Here's a free ebook for you to check out! 

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


more from Promotions

About Phil:

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...

Learn more About Phil >>

As Seen On:

About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>