Posts Tagged ‘open books’

Hey, Since When Is The Dirty Fed In The Loan Sharking Business?

Courtesy of Jr. Deputy Accountant

The Dirty Fed has been forced to open its books and, not surprisingly, data reveal that money managers capitalized nicely on the Fed’s intentions, as I suppose they well should have seeing as how our friends at 20th and Constitution are so f**king transparent about doing whatever it takes.

Grab the barf bag, you might need it.

HuffPo tells us that some familiar names made a quite awesome profit frontrunning the Fed, something not at all illegal but completely questionable in these troubled times. Is this the transparency you wanted?

The Fed effectively telegraphed its intentions to the Street before buying the bonds. Legendary money manager Bill Gross, who oversees more than $1.2 trillion at Pacific Investment Management Co. said last month during a television interview that part of his success over the last 18 months was due to buying securities in front of the Fed, and selling them to the Fed at a premium, allowing him to profit handsomely. Gross runs PIMCO’s $252.2 billion Total Return Fund.

Morgan Stanley sold the Fed more than $205 billion in mortgage securities from January 2009 to July 2010, while it’s [sic] much bigger rival, Goldman Sachs, sold $159 billion. Citigroup, the nation’s third-largest bank by assets, sold the Fed nearly $185 billion in mortgage bonds. Merrill Lynch/Bank of America sold about $174 billion.

It’s not clear how much these firms profited by engaging in the kind of activity that allowed Gross to profit so well, known as "front running." However, it’s abundantly clear that they did turn a profit.

JPMorgan Chase, the nation’s second-largest bank by assets, sold the Fed about $153 billion worth of mortgage securities.

Other foreign banks with extensive Wall Street operations also profited from the program.

Barclays, the British firm that took over failed investment bank Lehman Brothers, sold about $123 billion in mortgage bonds. UBS, a Swiss lender, sold about $94 billion. BNP Paribas, a French bank, sold about $67 billion.

That’s not all. The data also reveal that the Fed shoved fake money at everyone including McDonald’s, Verizon and Harley-Davidson. McDonald’s still laid off 700 in an attempt to "restructure", leaving any reasonable person to wonder how many they’d have cut if they hadn’t gotten a nice fat Zimbabwe Ben handout. Since when is the Fed in the business of loan sharking to anyone but the…
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Phil's Favorites

Saudi Arabia is allying with Russia to shore up oil prices as OPEC's power wanes

 

Saudi Arabia is allying with Russia to shore up oil prices as OPEC's power wanes

Saudi Minister of Energy, Industry and Mineral Resources Khalid Al-Falih. AP Photo/Ronald Zak

Courtesy of Gregory Brew, Southern Methodist University

The Organization of the Petroleum Exporting Countries likes to look united.

That’s evident when OPEC leaders meet in Vienna at the end of each year to decide how much oil its members will aim t...



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Zero Hedge

Markets Are "On The Cusp" Again

Courtesy of ZeroHedge. View original post here.

Authored by Sven Henrich via NorthmanTrader.com,

For the third month in a row markets are on the cusp of breaking their bull market trends. And once again they need a magic rescue into month end to avoid such a break.

What if you have a license to rally and stocks sell anyways? Not a g...



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Kimble Charting Solutions

Small caps could fall 20% from here, says Joe Friday

Courtesy of Chris Kimble.

This chart looks at the Russell 2000 over the past 30-years, where it has spent the majority of that time, inside of rising channel (A).

This chart reflects that the long-term trend in small caps remains higher. Weakness this year has it testing rising support tied to the 2009 lows at (1).

Joe Friday Just The Facts Ma’am- If the Russell breaks below support at (1), it could work its way over time to channel support at (2), which is currently around 20% below current prices.

Very important support test in play ...



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Digital Currencies

Cryptogeddon Continues - Bitcoin Plunges To 2018 Lows Amid 'Cash' Chaos

Courtesy of ZeroHedge. View original post here.

Crypto markets have accelerated their losses again overnight with Bitcoin crashing to new 2018 lows, Ethereum back into double-digits, and Bitcoin Cash utterly devastated as lawsuits fly.

Once again a sea of red across the crypto space...

Source

Bitcoin Cash is down 40% this week alone...

...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga.

  • Data on nonfarm payrolls and unemployment rate for November will be released at 8:30 a.m. ET.
  • The University of Michigan's consumer sentiment index for December is schedule for release at 10:00 a.m. ET.
  • Data on wholesale inventories for October will be released at 10:00 a.m. ET.
  • The Energy Information Administration’s weekly report on natural gas stocks in underground storage is schedule for release at 10:30 a.m. ET.
  • Federal Reserve Member of the Board of Governors Lael Brainard is set to speak in Washington D.C. at 12:15 p.m. ET.
  • The Baker Hughes North American rig count report for the recent week will be released at 1:00 p.m. ET.
  • Data on consumer credit for October will be released at 3:00 p.m. ET.
  • ...


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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...



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Chart School

Golds Xmas Gift

Courtesy of Read the Ticker.

Three things have tweaked the fundamentals for gold.

1) Bitcoin is not attracting the hot cash, unlike 2016.

2) Fed's Powell dovish switch, now less expectations for interest rate hikes in 2019.

3) China to import more goods from the USA, hence more US Dollars required.

The question now is will this move gold back to resistance before year end? 

Gann angles look good, cycle looks attractive, now we wait for volume and a price to break into new ground. Profits could be golden for Xmas.

Gann Angles



 

Cycle picture
...



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Biotech

World's first gene-edited babies? Premature, dangerous and irresponsible

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

 

World's first gene-edited babies? Premature, dangerous and irresponsible

Vchal/Shutterstock

By Joyce Harper, UCL

A scientist in China claims to have produced the world’s first genome-edited babies by altering their DNA to increase their resistance to HIV. Aside from the lack of verifiable evidence for this non peer-revie...



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Members' Corner

Cheri Jacobus on Politics with PSW

 

Cheri Jacobus is a widely known political consultant, pundit, writer and outspoken former Republican and frequent guest on CNN, MSNBC, FOX News, CBS.com, CNBC and C-Span. Cheri shared her thoughts about the current political environment with us in our August interview, and now we’re following up. 

Ilene: Is there a take-home message from election results of 2018?

Cheri: Yes. No political party can survive when it appeals to only one demographic. The GOP has ignored all of the lessons of recent elections that showed they needed to appeal to African-Americans, Latinos, and women. 

Ilene: Do you feel the Democrats ...



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ValueWalk

Vilas Fund Up 55% In Q3; 3Q18 Letter: A Bull Market In Bearish Forecasts

By Jacob Wolinsky. Originally published at ValueWalk.

The Vilas Fund, LP letter for the third quarter ended September 30, 2018; titled, “A Bull Market in Bearish Forecasts.”

Ever since the financial crisis, there has been a huge fascination with predictions of the next “big crash” right around the next corner. Whether it is Greece, Italy, Chinese debt, the “overvalued” stock market, the Shiller Ratio, Puerto Rico, underfunded pensions in Illinois and New Jersey, the Fed (both for QE a few years ago and now for removing QE), rising interest rates, Federal budget deficits, peaking profit margins, etc...



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OpTrader

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 ...



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Promotions

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

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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...

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