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Monday Market Madness – Drone Attacks Threaten Global Oil Supplies

Image result for saudi drone

Phil – September 14th, 2019 at 3:17 pm

"Oil/Emike, Bert – Yeah but it's the same thing.  FUNDAMENTALLY we knew the Saudis would do something to support $60 on /BZ due to the Aramco deal.  Last summer they pulled the deal but now they are too far along so their only option is to do SOMETHING to boost the price.  

Oil (/CL) right at $55, Gasoline (/RB) coming off $1.55.  Brent (/BZ) $60.33 should hold $60 so /CL is not a bad long at this line over the weekend – maybe something will blow up? "

And THAT is how you make $5,000 PER CONTRACT trading oil into the weekend! 

In our Live Memeber Chat Room, we are not conspiracy theorists – it's simly that we have observed many, many times that, when the Saudis need to boost the price of oil (and they desperatately needed the price highers as the Aramco (state-owned oil company) IPO is looming), things tend to blow up.  Whether it's Nigerians attacking a pipeline or Iran or Houthis (who are taking credit for the current attack), we call them "Rent-A-Rebel" as they are perpetually on-call to jack up oil prices off key supports.  

Creating a sense of unease in the supply chain is a great way to jack up the Futures and jacking up the futures by 10% is a $100-200Bn payoff for the valuation of Saudi Aramco – that's enough money to make even Dr. Evil stand up and take notice.  Do you think the Saudis are above sacrificing a few men for that kind of money?  Jamal Khashoggi would certainly tell you otherwise.  

Related imageAccording to the narrative, Iranian-backed Houthi Rebels used drones to attack the Aramco Death Star and took out "50% of their production capacity" although suddenly 1/3 of it will be back on-line by the end of today so maybe it was never 50% – or maybe it was never much at all and this is just how they manipulate the price of oil?  Trump's Administration is blaming Iran – because he doesn't like Iran so he blames them for things – even when the Houthis are in Yemen and the drone attacks seem to have come from Iraq's territory, causing their Government to state:

“The Iraqi government will deal firmly with anyone who tries to violate the constitution … (and) calls on all parties to stop mutual attacks which cause great loss of life and facilities.

“The Iraqi government affirms that it follows with great interest these developments and solidarity with its brothers and expresses concern that the escalation and military solutions will complicate the humanitarian and political situation and threaten our common, regional and international security.”

Iraq, Iran and the Saudis do have one thing in common – they all benefit financially from this attack and they are all members of OPEC and, if this attack were really real, then this is an act of war and you would not expect them to be all working together in the Future, right?  Iraqi commanders of pro-Iran armed factions said media reports of their involvement were an American attempt to put more pressure on the Iraqi government and justify future attacks on resistance leaders inside Iraq.  That does kind of sound like something we'd do, doesn't it?

“We know that the accusations are baseless and the Americans cannot prove them. They would know if any drones took off from anywhere in Iraq as they fully control the Iraqi skies, so it is just a new pretext to target us,” a prominent commander of Asa’ib Ahl Al-Haq, one of the most powerful Shiite armed groups in Iraq, told Arab News.

“They (the US) will start a campaign to terminate the leaders of the resistance (pro-Iran) factions and some Shiite politicians who they (the Americans) believe are a threat for their (the US’) interests.

So who are the "bad guys" here?  At this point it's hard to say but we'll take our money and run on the oil longs but Exxon (XOM) might be fun to play at $75 (up 2.5% at the open) and you can sell 2021 $65 puts for $4 as that price is likely off the table and our Oil Service ETF (OIH) should get a nice pop because someone has to rebuild those wells, right?  We're already very long OIH as it was stupidly cheap.

This is another fine example of where investing and politics meet!  Speaking of which, we have a Fed Meeting this week where it's considered a certainty that rates will be cut another 0.25% and chatter says 0.5% is still in the cards though I doubt that very much.  Powell will speak Wednesday at 2:30 and I will address the Nation (well, Canada) on Bloomberg's Money Talk that evening, where we'll go over our Money Talk Porfolio, which is up 148% since our Sept 6th, 2017 inception.  Not bad for a portfolio we only trade live on the show, once per quarter…  

Other important events happening this week are this morning's Empire State Manufacturing Survey, which already came in a bit wea.  Tomorrow we have Industrial Production and the Housing Market Index, Wednesday is Housing Starts, Mortgage Applications and the Fed and Thursday we get the Philly Fed, Existing Home Sales and Leading Economic Indicators and we wrap up the week with Fed Speak from Williams and Rosengren on a Quad Witching Expiration Day – what a fun week this will be!

And you would think earnings are a thing of the past but we still get some good ones, like Adobe (ADBE) and FedEx (FDX) tomorrow, General Mills (GIS) and Herman Miller (MLHR) on Wednesday and Darden (DRI) on Thursday – big national companies that give us a very useful sense of recent consumer direction in an otherwise quiet week.

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  1. We are no conspiracy theorists, but beneficial coincidences are increasing around Trump's friends!

  2. Good Morning!

  3. Phil// any recommended trades on GOLD stock?  I saw a week or two back you had closed the 2021 GOLD options.

  4. Sold 1/2 position in WLL at $9.40.

  5. Phil / CSCO -

    Good morning!  Can i get your thoughts on opening a new position in CSCO.  Thank you

  6. Sold balance of WLL at $10.  Out for now.

  7. Looks like some Jan 22 options are now trading.

  8. AIMT got a positive vote from the FDA panel on Friday.  Expected to get final approval and a launch of the product in January.  Stock down today on a "sell the news." reaction.  Shorts are fighting back. (30% short position),  Think it's a buying opportunity.

  9. Albo, thanks for the AIMT idea last week(s) – I played along and obviously quite happy after Friday.

  10. Schrödinger’s Impeachment

  11. AlterEgo – You're welcome.  FWIW, I added a little more at $23.47 and covered half with March 25 calls for $4.20.

  12. Phil / CMG profit taking – you mentioned that on Friday. Any plans?

  13. Wow those AIMT calls are rich Albo. Seems interesting.

    Sold Mar $15 calls to cover 100% on WLL. You probably did the right thing by just getting out, but I have liked the premium that I've seen in the options, and today they were pretty pumped up.

  14. Atitlan – I left some money on the table on WLL.  Never expected to see it spike that high.

    Premiums are high on AIMT on both sides.  Will look to sell some puts on further weakness.

  15. If RUT holds up this week, both 50 and 200 DMA's will show an upturn. This has been the weakest index and now might confirm a bullish trend.

  16. Three cheers for sugar as well – which I believe Phil was going long on during last week's webinar…

  17. Good morning!

    Very tempting to short Oil here but can't get a real story on what's happening.

    Indexes taking very little damage, which testifies to their strength – ahead of the Fed, at least.

    Conspiracies/StJ – Good note from the New Yorker:

    Trump both runs the government and runs it down. The electoral system, he asserts, can’t be trusted. Voter fraud is rampant. His contempt for institutions ranging from the courts (“slow and political”) to the Federal Communications Commission (“so sad and unfair”) to the F.B.I. (“What are they hiding?”) weakens those institutions, thereby justifying his contempt.

    As government agencies “lose competence and capacity, they will come to look more and more illegitimate to more and more people.”

    The Internet revolution “has displaced the gatekeepers, the producers, editors, and scholars who decided what was worthy of dissemination.”

    GOLD/Rookie – I think we substituted our deep in the money longs for a more conservative (less deep in the money, so less net delta on a pullback) spread, that's all.  Still have the $15/22 spread in the OOP and a $15/20 spread in the LTP.  As usual, we'll sell puts and calls for cash while we wait and, if GOLD drops back to $15 – we'll roll to the $10s for $2.50 and start the cycle all over again.  

    "I want to know what became of the changes

    We waited for love to bring

    Were they only the fitful dreams

    Of some greater awakening

    I've been aware of the time going by

    They say in the end it's the wink of an eye

    When the morning light comes streaming in

    You'll get up and do it again

    Amen" – Jackson Browne

    WLL/Albo – Nice one – good example of how scaling into a position generates a winner.

    WLL – Reported a horrible quarter and cutting out 1/3 of workforce.

    Started a small position.  Bought stock at $11.10.  Sold Jan 13 calls for $1.52,  Sold Jan 10 puts for $1.60.

    WLL/Albo – Another thing from the Webinar, E&P still getting killed as we're in the trough of the cycle for investing.  Going to be a long, rough ride.  At least it's not like they're losing money while you wait and $11 is only $1Bn for the whole company – so I agree it's a good pickup down here.

    Added more WLL.  Now a full position.

    CSCO/Emike – Well because of IoT, I like them long-term.  All those robots have to talk to each other to coordinate their attack on humans.  They are decently low in the channel at $50 but it is 20x earnings, which is why they're not in our portfolios – as much as I love them.  

    Year End 27th Jul 2014 2015 2016 2017 2018 2019 2020E 2021E CAGR / Avg
    Revenue $m 47,142 49,161 49,247 48,005 49,330 51,904 52,933 54,693 +1.9%
    Operating Profit $m 9,345 10,770 12,660 11,973 12,309 14,219     +8.8%
    Net Profit $m 7,853 8,981 10,739 9,609 110 11,621 14,042 14,604 +8.2%
    EPS Reported $ 1.49 1.75 2.11 1.90 2.15 5.15     +28.2%
    EPS Normalised $ 1.55 1.85 2.17 2.03 2.22 5.19 3.34 3.57 +27.3%
    EPS Growth % -17.2 +19.1 +17.5 -6.6 +9.4 +133.8 -35.6 +7.04  
    PE Ratio x           9.64 15.0 14.0  
    PEG x           n/a 2.13 4.63

    2019 actually closed for them and they are now into 2020 so that $11.6Bn is not speculative but I think the $14Bn for 2020 is a bit much so I'm waiting for a major sale on CSCO – more like 15x earnings so about $35-40 range. 

    That being said, the 2021 $43 puts are $3.30 so $5 would be my magic number as I'm very comfortable starting a position in at net $38.

  18. RUT up on strong dollar, flee to safety???????

  19.  RUT 1,600 has been top level since last October, having been rejected several times. Possible shorting opportunity?

  20. You know, no one noticed but Sugar (/SB) also popped this morning – that was a great Top Trade Alert!  

    /SBH20 hit $12.40 this morning, up 0.40 since Friday's call at $11.20 per penny so $448 per contract is very nice.  CANE made a nice move too with the Jan $6 calls now 0.80 – up 33% is pretty good for our first day.

    Of course we're aiming higher than 0.80 but, if you played the Futures and the Options – I'd cash the Futures and leave the calls.  

    2022/StJ – Ah, my favorite time of year.  So many mis-priced options to take advantage of! 

    CMG/Winston – Yes, thanks for reminder.

    In the last LTP Review, CMG was $815 and the short Jan $740 calls were $114.65 and now they are $88.95 and, while still a loss, both our 2021 spreads are in good shape so let's take the small loss and see what happens into the Fed – closing ALL the CMG Jan $740 short calls at $89.

    In the STP, we sold the Sept $800 calls for $35.50, now $6.50 and it's silly to risk that – even for Friday so let's close those for a quick $17,000 profit and let's close the Jan $800 short calls as well at $51.50 (sold for $80) and that leaves us with short 2021 $900 and $1,200 calls – which are targets I feel good about (and both up at the moment).  We also will leave the short Jan $700 puts – either they go worthless or we'll be thrilled about our short calls.

  21. CSCO – Thanks Phil, Ill add this to my watch list

  22. Sugar/Ati – Thanks for noticing!  

    RUT/Den – Yes, on a huge roll now.  I wouldn't call the RUT a flee to safety but the strong Dollar is good for the RUT and momentum was on their side.  I certainly wouldn't short them ahead of the Fed. 

    You're welcome EMike.

    Even /KC is having a good week:

  23. Phil / CSCO – 20X earnings?  it's 10X earrings or am I missing something?

  24. Phil / CSCO – PE at 20X….

  25. Phil / GM – may go on sale with this strike – any thoughts on a position?

  26. The bitter end.  We gave up a long time ago.

    On Friday, MoviePass notified remaining subscribers that it would be shutting down the service effective Sept. 14, 2019, because “its efforts to recapitalize MoviePass have not been successful to date,” parent company Helios and Matheson Analytics announced.3 days ago

  27. CSCO/Batman – $212Bn at $50 divided by $11.6Bn in profit is 18.27 according to my handy calculator.  I know it says they made $3.10 per $50 share so that would be 16.12 but I don't know where they get those EPS numbers – I always look at the bottom line net profit AND, keep in mind, these are tax-friendly net profits – that may change a bit in 2021.

    GM/Batman – I thought they were on strike.  Yes, they are:

    The United Automobile Workers union went on strike at General Motors, sending nearly 50,000 members at factories across the Midwest and South to picket lines on Monday morning.

    With the two sides far apart, U.A.W. regional leaders in Detroit voted unanimously on Sunday morning to authorize the strike, the union’s first such walkout since 2007. It began at midnight, after the union’s current bargaining agreement expired on Saturday.

    “Today, we stand strong and say with one voice, we are standing up for our members and for the fundamental rights of working-class people in this nation,” said Terry Dittes, a union vice president.

    As the strike took hold, the union and the company resumed negotiations at 10 a.m. Monday.

    The U.A.W. is pushing G.M. to improve wages, reopen idled plants, add jobs at others and close or narrow the difference between pay rates for new hires and veteran workers. G.M. wants employees to pay a greater portion of their health care costs, and to increase work force productivity and flexibility in factories.

    Subscribe to With Interest
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    Although the company has been earning substantial profits in North America — and it made $8.1 billion globally last year — it has idled three plants in the United States as car sales slide and overall demand for vehicles weakens.

    This is going to be a problem for all the industrials soon – workers are wising up and realizing they are being underpaid.  I don't think the strike is a surprise at GM, I think they already dipped on expectations in Aug and now it's a reality so $35 seems right.  

    Notice those cuts in per-vehicle labor costs.  GM is already high compared to others but they are all low compared to the past but GM has to sell $145Bn worth of cars to make $8Bn so call it 5% and let's say a car is $30,000 so 4.8M cars at $2,500 per car for labor is $12Bn in cost so figure a 10% increase in wages/benefits would cost them $1.2Bn or 15% of profits and I'm not sure the workers will settle for 10%.  Still, let's say 10% is fair and profits fall 15% but that will be over time and earnings were looking like they were going up 10% this year ($9Bn) so, even at 10x, GM should be $80Bn and $37.20 is just $53Bn so still cheap but then we have to factor in the risk of how bad things can be in a downturn (they lost $4Bn in 2017) and I'd say 8x is fair for $64Bn so about $45 would be fair for them so $35 is still a very good deal if we get there.  

    HMNY/Albo – Ah but there is still a company – maybe they will make a comeback?  I can't believe they didn't go BK – that's amazing.

  28. Phil/CMG- the Jan 21 900-1200 is a BCS correct? The post above says short 900 and 1200 calls. Did i get the orig trade wrong?

  29. CMG/Ravi – Yes, mis-entered, thanks.

  30. Oil still pushing higher.

    • Crude oil prices are near their highs of the day after Saudi Arabia charges Iranian weapons were used to attack its oil installations, dismissing claims of responsibility by Yemen's Houthi rebels, after U.S. intelligence officials reportedly shared information with the Saudis that Iran was the staging ground for the attack.
    • This is a potentially significant development, since Pres. Trump said yesterday the U.S. was "locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed."
    • Crude prices climb even higher: October WTI crude (NYSEARCA:USO+11.5% to $61.20/bbl, November Brent (NYSEARCA:BNO+12% to $67.45/bbl.
    • The attack and security concerns reportedly have placed at risk Saudi Aramco's (ARMCO) long-awaited IPO.
    • Spiking oil prices; a nationwide auto strike? If the president goes on TV in a sweater tonight urging us to turn down our thermostats, it'll be a trifecta of 1970s news.
    • In any case, General Motors (GM -4.3%) is sinking as nearly 50K UAW members went on strike at midnight. Shut down are 33 manufacturing plants across nine states, as well as 22 parts distribution warehouses.
    • Buy the dip, says Morgan Stanley's Adam Jonas. By his calculations, the strike is costing GM $0.03 in EPS per day, an amount that can mostly be offset via inventory management and pricing changes.
    • Negotiations between GM and UAW are back underway. According to a top UAW honcho, the two parties remain far apart.
    • Gold prices look to have established a new floor at $1,500/oz., Kinross Gold (KGC +2.5%) CEO Paul Rollinson says, as the miner announces plans to move forward with an expansion plan for the key Tasiast mine in Mauritania.
    • "I don't see a lot of technical barriers above it, but I do believe that there’s people buying in to where we are today," Rollinson said today at the Denver Gold Forum.
    • KGC is focused on investments for its internal projects and building a stronger balance sheet, including a restart for the La Coipa mine in Chile, which will be a "bridge" to looking at starting production at its Lobo-Marte project, the CEO said.
    • Further internal investments will focus on projects the company already is completing including in Nevada and Alaska, Rollinson said.
    • But the CEO said he "wants to see how this gold price holds" before considering dividends.

    • Netflix (NASDAQ:NFLX) has won global streaming rights to TV hit Seinfeld starting in 2021, the Los Angeles Times reports.
    • That means a move for the '90s smash from its longtime home Hulu (DIS -1.5%), and is some welcome news in the other direction for Netflix — which has taken hits from planned upcoming departures of popular shows Friends and The Office.
    • This Seinfeld deal with Sony Pictures Television (SNE -1%) will be formally announced today, the Times says.
    • It's a five-year deal that covers all 180 episodes and most of Netflix's 151M subscribers worldwide.
    • Hulu pays $150M annually for its rights to the show, which will now expire in 2021. (NASDAQ:AMZN) had streaming rights in most of the foreign territories that Netflix is picking up.
    • Netflix has tweeted out the deal.
    • Schlumberger (SLB +5.3%) is upgraded to Overweight from Equal Weight with a $50 price target, raised from $45, at Barclays, where analyst Dave Anderson says new CEO Olivier Le Peuch "hit all the right notes" as he repositions the company to succeed in a lower growth environment.
    • On the new CEO, "the message clearly resonated with investors as he addressed the Street's biggest concerns while also providing bold, yet achievable financial targets," Anderson writes.
    • On the flip side, the firm downgrades Halliburton (HAL +7.3%) to Equal Weight from Overweight with a $23 price target, cut from $31, as Anderson sees "only modest upside" to the shares after revising his estimates lower.
    • Anderson also says he has a positive view of HAL's "returns-focused playbook" for North America, though it should have been implemented sooner.
    • Analyst move carry little weight today, with energy names enjoying broad gains as crude prices skyrocket.
    • (AMZN -2.1%) changed its search algorithm in a way that boosted its own products over rivalsThe Wall Street Journal says, overcoming internal objections to do so.
    • Late last year the company adjusted its algorithm from showing the most relevant or best-selling results to boost items that were more profitable for the company, according to the report.
    • That's the outcome of a yearslong battle between Amazon's Seattle retail execs and the search engineering team in Silicon Valley — which raised objections over adding profit factors into the algorithm, it says.
    • The report comes amid a high-stakes probe in the U.S. and Europe of the company's market power as both a marketplace operator and a seller of Amazon-branded products.
    • HP (NYSE:HPQ) is 1.5% lower premarket following a cut to Neutral at UBS, from Buy, ahead of a "tough year" for PCs and printer supplies.
    • "We do not see printer supplies growing for the next 18 months," analyst John Roy says, adding "good times" look to be over in the PC area.
    • Macro uncertainty isn't adding any clarity to the picture, either.
    • He's cut his price target to $20 from $26, now implying 4.8% upside.
    • Roy joins decidedly lukewarm sentiment: Sell-side analysts rate HPQ a Hold on average and Seeking Alpha authors are Neutral, while it has a Quant rating of Neutral.
    • WTI crude oil is currently higher by 10.5% following this weekend's attack on Saudi production.
    • A sizable consumer of crude products are the airline and cruise industries, and the players are slipping in premarket action.
    • Carnival (NYSE:CCL-3.3%, Royal Caribbean (NYSE:RCL-2.2%, Norwegian Cruise (NYSE:NCLH-1%
    • American Airlines (NASDAQ:AAL-4.3%, Delta (NYSE:DAL-3.8%, United (NASDAQ:UAL-2.8%, Southwest (NYSE:LUV-2.9%, Alaska (NYSE:ALK-2.3%
    • Sept. Empire State Manufacturing Survey+2.0 vs. +4.9 consensus, +4.8 prior.
    • New Orders: +3.5 vs. +6.7 prior.
    • Shipments: 5.8 vs. +9.3 prior.
    • Number of employees:  +9.7 vs. -1.6 prior.
    • The president has a case of the Mondays. Continuing with a very busy Twitter session touching on many subjects, Trump moves on to interest rates.
    • "Federal Reserve not watching," he asks, noting a big drop on producer prices in China, and a strong dollar. "Jay Powell & the Fed don't have a clue."
    • On top of all this, the "oil hit" adds to the need for a "Big Interest Rate Drop."
    • The Fed meets this week, and announces its rate decision on Wednesday afternoon.
    • Facebook (NASDAQ:FB) is meeting with central bank officials from 26 countries, including the U.S. Federal Reserve and Bank of England, to answer questions about the company's planned libra digital currency, Financial Times reports.
    • A European Central Bank spokesperson confirms to CNBC that a meeting on stable cryptocurrencies is taking place in Basel, Switzerland, but does not confirm any of the attendees; the company is not commenting.
    • The libra coin is aimed at making it easier to transfer money around the world, but FB's plans have faced much criticism from global regulators and lawmakers.

  31. Phil, was thinking of a bullish butterfly in OIH since the Wed talk. Does today's news change anything? I was surprised at the drop in VLO. What would you do as a new trade now?

  32. Any techies out there that can help? Cox is my ISP here in SoCal and they provide a modem which has 4 ports for hardwire ethernet connection. My house is prewired for multiple locations and I want to add a 5th location but the modem only has 4 available ports all of which are being used. Cox does not provide equipment with more than the 4 ports I already have so how can I work around this? Any ideas would be appreciated. 

  33. Mike-thx . I will check it out. My wife works from home and uses multiple remote server connections which just don't seem to work well via Wifi so hardwire ethernet has been working best. 

  34. I use one of those pstas. Ran an ethernet cable from the modem to my computer room where I work and plugged it into the switch. I have several computers connected to that one switch & they all work with no noticeable speed degradation. 

    It's all very plug and play nowadays. Running the ethernet cable was the only step that took any actual work.

  35. OIH/JMD – OIH has been very tricky in the Butterfly Portfolio and we're still working out of an overall loss (down $5,700) though our remaining position will do very, very well if we turn our right.  The current OIH position was negative $22,350 and we doubled down and rolled our 100 $15s to $100 $10s and did some smaller adjustments but now we're positive $22,800 so a massive swing but, if not for that, this would be a huge loser so it's really an "avoid" for future Butterflies.  

    Modem/Pstas – How old is that system???  They don't even have connections anymore – they have Wifi, you know…  cool  Of course that's not secure enough if your wife is a spy.  You can buy an ethernet (RJ45) SWITCH (not splitter) that turns 1 port into 2-5, you can get those at Fry but I'd bring the hub in if that's the case – to make sure.   This one should work from AMZN.  Mike's is cheaper but I don't know those guys.

    Not looking good into the close.

  36. Atitlan- sounds simple enough. Connect the "switch " to the Cox modem; then connect the computer(s) to the switch. Signal degradation is my concern but if it works for you I will give it a try. 

    Phil, are you married? My wife wants a direct ethernet connection so that is what she gets. Get it? 

  37. JMD VLO Jan 22 selling the Jan 70 put for 11.10 is a very interesting with cost efficient margin.

  38. Wife/Pstas – Say no more.  I've tried using logic – doesn't work…

    VLO/Yodi, JMD – If oil goes up faster than gasoline, then VLOs margins get squeezed.  The assumption is they are going to have a hard time passing it on to the consumer as we're back towards $3/gallon.

    Oil up almost 13% at $62, $62.50 was a bit of resistance but not much pullback so far. 

    Was $70 on /BZ so, on the whole, just a weak retrace ($2) after holding the strong retrace ($4)

    Trump saying first we find out who did it – then we attack! 

  39. pstas --

    The other suggestions you've received are right.  Disconnect one of your existing ethernet cables from your router.  Connect a cable from the just-unplugged-port from your router to the new switch and then connect the unplugged cable, and your new device, into the ports on the switch.  There will be no degradation because the signal is buffered and repeated in the internals of the device.  It isn't literally split.  Technically, and in a sense that is totally irrelevant, you will lose bandwidth and have an entirely irrelevant reduction in latency but those factors approach 0 if you're doing anything outside of HPC.

    Good graphic showing the connections:

  40. JPH- 

    Ah, a picture- that helps a lot. Thanks.

  41. pstas – if you're on gigabit or faster internet, make sure your new hookups use cat 6 or better cable as well. Some people do have old cat 5 or lower cables laying around (I did) and they'll fit, they'll work to some degree, but supposedly they'll cause problems. 

  42. 8 Years of Trump Tax Returns Are Subpoenaed by Manhattan D.A.