Posts Tagged ‘red flags’

SEC Internal Review Cites Multiple Failures on Madoff

SEC Internal Review Cites Multiple Failures on Madoff

By Janet Morrissey, Courtesy of TIME

Bernard Madoff arrives at federal court in New York, Thursday, March 12, 2009.
Mary Altaffer / AP

A long-awaited report from the Inspector General at the Securities and Exchange Commission concludes the SEC received six "substantive" complaints between June 1992 and December 2008 that could have uncovered disgraced financier Bernie Madoff‘s Ponzi scheme as far back as 1992 if it had "properly examined or investigated" Madoff’s trading practices.

In a 450-page report, released Wednesday, the report outlines a series of fumbles, where SEC staff either failed to follow up on complaints, wrongly accepted Madoff’s confusing and inconsistent answers to questions or, in some cases, involved junior staff who didn’t understand options trading and Ponzi schemes.

"Despite three examinations and two investigations being conducted, a thorough and competent investigation or examination was never performed," the report said.

The report said at least six complaints raised questions about Madoff’s trading practices, with some even suggesting a Ponzi scheme was involved. They questioned "Madoff’s incredible and highly unusual fills for equity trades, his mispresentation of his options trading and his unusually consistent, non-volatile returns over several years," and how Madoff’s alleged strategy and purported returns could not be duplicated by anyone else and had "no correlation to the overall equity markets in over 10 years." One tipster even nudged the SEC that "it may be of interest to you that Mr. Madoff keeps two sets of records — the most interesting of which is always on his person."

Yet, SEC staff failed to adequately follow up or seek third-party verifications on the trades, the report said. In many cases, the report said, "an inexperienced examination team" was assigned the investigation, many of whom were not familiar with trading practices and simply accepted Madoff’s explanation that he used his "gut feel" to time the market based on "his observations of the trading room." According to the report, examiners stated "there was no training" and that "this was a trial by fire kind of job." It also stated that examination team was "composed entirely of attorneys, who … did not have much experience in equity and options trading’ but ‘rather, their experience was in general litigation.’" (See pictures of a Madoff family album.)

"The result was a missed opportunity to uncover…
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Phil's Favorites

The Texas blackouts showed how climate extremes threaten energy systems across the US

 

The Texas blackouts showed how climate extremes threaten energy systems across the US

Electric service trucks line up after a snow storm in Fort Worth, Texas, on Feb. 16, 2021. Ron Jenkins/Getty Images

Courtesy of Roshanak (Roshi) Nateghi, Purdue University

Pundits and politicians have been quick to point fingers over the debacle in Texas that left millions without power or clean wate...



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Biotech/COVID-19

COVID-19 revealed how sick the US health care delivery system really is

 

COVID-19 revealed how sick the US health care delivery system really is

Many U.S. hospitals and clinics are behind when it comes to sharing information. Teera Konakan/Moment via Getty Images

Courtesy of Elizabeth A. Regan, University of South Carolina

If you got the COVID-19 shot, you likely received a little paper card that shows you’ve been vaccinated. Make sure you keep that card in a safe place. There is no coordinated way to share information about who has been vaccinated and who has not.

...

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Zero Hedge

Barstool's Dave Portnoy Puts His "Face Behind" New Social Media Sentiment ETF

Courtesy of ZeroHedge

Barstool Sports' Dave Portnoy made an "emergency press conference" at the beginning of the US cash session Tuesday about a new ETF he is "part of." He said he's putting his "face behind," his "reputation behind," and everything he represents behind this new social media sentiment ETF.

Portnoy is referring to VanEck's new "Social Media Sentiment" ETF (something we previewed to readers weeks ago), which will trade stocks that are being talked up the most on social media. 

...



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ValueWalk

Scientifically Realizing Our Hope for Unity

By Jacob Wolinsky. Originally published at ValueWalk.

President Joe Biden has ushered in our new administration with a call for unity; a noble aspiration which cynics among us have dismissed as unlikely.

Q4 2020 hedge fund letters, conferences and more

Achieving Unity: A Daunting Task

As a nation, we face a daunting task: uniting our country in the midst of a raging pandemic with its resulting economic devastation and societal discord, even as a large portion of our population still refuses to accept the clear results of our past election. All this is overshadowed by the recent specter of ...



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Kimble Charting Solutions

Semiconductor Stocks Looking To Trigger Bullish Breakout Signal

Courtesy of Chris Kimble

After years of underperformance, the Semiconductors Sector (SMH) turned the tables in 2016, becoming a market leader.

And today, the Semiconductors are looking to further cement that leadership role.

Today’s long-term “monthly” chart highlights the ratio of Semiconductors Sector (SMH) to Nasdaq 100 (QQQ), showing how the Semis have taken the lead in the past 5 years… as well as an important breakout test going on today!

Line (1) was support twice in the 2000s. When that failed, it le...



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Mapping The Market

Which Governments Ordered Johnson & Johnson's Vaccine?

 

Which Governments Ordered Johnson & Johnson's Vaccine?

Courtesy of Niall McCarthy, Statista

On Wednesday, U.S. regulators announced that Johnson & Johnson's Covid-19 vaccine being developed by its subsidiary Janssen Pharmaceuticals in Belgium is effective at preventing moderate to severe cases of the disease. The jab has been deemed safe with 66 percent efficacy and the FDA is likely to approve it for use in the U.S. within days.

The Ad26.COV2.S vaccine can be stored for up to three months in a refrigerator and requires a single shot, ...



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Digital Currencies

Crypto - It Is Different This Time

 

Crypto – It Is Different This Time

Courtesy of Howard Lindzon

?I have been astonished as you know by the growth of crypto.

I remember back in 2017 when I noticed that Stocktwits message volume on Bitcoin ($BTC.X) surpassed that of $SPY. I knew Bitcoin was here to stay and Bitcoin went on to $19,000 before heading into its bear market.

Today Bitcoin is near $50,000.

Back in November of 2020, something new started to happen on Stocktwits with respect to crypto.

After the close on Friday until the open of the futures on Sunday, all Stocktwits trending tickers turned crypto. The weekend messages on Stocktwits have increased 400 percent.

That has continued each weekend...



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Politics

What is fascism?

 

What is fascism?

A Donald Trump supporter wears a gas mask and holds a bust of him after he and hundreds of others stormed the Capitol building on Jan. 6, 2021. Roberto Schmidt/AFP via Getty Images

Courtesy of John Broich, Case Western Reserve University

Since before Donald Trump took office, historians have debated whether he is a fascist.

As a teacher of World War II history...



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Chart School

The Fastest Money

Courtesy of Read the Ticker

The fast money happens near the end of the long trend.

Securities which attract a popular following by both the public and professionals investors tend to repeat the same sentiment over their bull phase. The chart below is the map of said sentiment.
 


 

Video on the subject.


 

Charts in the video



 



 



Changes in the world is the source of all market moves, to ...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

...

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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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