Tuesday, November 30, 2010

What Would the Founding Fathers Think?

There appears to be almost universal condemnation regarding the Wikileaks document dump issue. I have refrained from adding my 2 cents worth on the Wikileaks story. I would like to say I am shocked by some of the venom being spewed forth by the likes of Rep. Peter King who wants Wikileaks designated a terrorist organization and Bill O'Reilly who thinks Wikileaks leakers are traitors and should be executed or imprisoned but really I am not. Apologists and cheerleaders the lot of them.


Given this near universal condemnation of the Wikileaks dump, I humbly offer you the following pieces for your consideration.


Wikileaks reveals more than just government secrets. There are a couple of excellent sub-pieces included in this one with links to them. I encourage you to give them a read.


And a video below I strongly encourage you to watch by one of my favourites, Judge Andrew Napolitano. A man who, when he speaks, reminds me that there is some sanity left in this great country. A man who, I believe, our founding fathers would be proud to call one of their own. You think that maybe our founding fathers, the men who penned the Constitution and the Declaration of Independence, might think like this......







Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.65 stop @ $7.98
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69
Short 1 unit Apple ticker AAPL @ $312.10 stop @ $314.71

Punting Apple - AAPL

I am punting short one unit of  Apple ticker AAPL here at $312.20




The reason?


Maybe boredom, possibly disdain or maybe the head and shoulders formation on the stock that has been developing since early October, not that any technical pattern is worth trading on anymore mind you.


Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.65 stop @ $7.98
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69
Short 1 unit Apple ticker AAPL @ $312.10 stop @ $314.71


Monday, November 29, 2010

Pitchfork to Pension Ratio

I trust all my readers had a wonderful Thanksgiving holiday. I spent mine in wonderful Oklahoma City with family and needed a rickshaw to get around I ate so much. There is just something about this holiday that resonates with me, the time of year, the smell of wonderful food in the house, the Lions losing on national TV. Well, at least they didn't embarrass themselves like they have in prior years! 

We are truly blessed and have much to be thankful for, which is why I had to turn off my computer during the holiday after catching wind of the story off Bloomberg that  Hungary Follows Argentina in Pension Fund Ultimatum seizing pension assets. Please note how this news was released Thanksgiving day, yes readers Thanksgiving day. Gotta love the thugs in power and the mainstream media that obeys their every word.  According to the Bloomberg piece;

'Hungary is giving its citizens an ultimatum: move your private-pension fund assets to the state or lose your state pension.

Economy Minister Gyorgy Matolcsy announced the policy yesterday, escalating a government drive to bring 3 trillion forint ($14.6 billion) of privately managed pension assets under state control to reduce the budget deficit and public debt. Workers who opt against returning to the state system stand to lose 70 percent of their pension claim'

“This is effectively a nationalization of private pension funds,” David Nemeth, an economist at ING Groep NV in Budapest, said in a phone interview. “It’s the nightmare scenario.”


Remember that back in 2001 the Argentine government seized private pension plans replacing the funds with government bonds which they then defaulted upon. As if that was not enough of an insult the crooks came back yet again in 2008 and took over privately managed pension plans. Can' t make this stuff up I tell ya'. What was that phrase I once heard? Oh yeah... "fool me once shame on you, fool me twice shame on me." 

Obviously, the government in Argentina was monitoring sales of pitchforks in the aftermath of pillaging the pensions and not observing any appreciable spike in sales decided it was A-okay to yet again loot the public purse. If only the Argentines would get as interested in these types of matters as they do with futbol but I digress.  


Is there a pitchfork to pension ratio?

Well it seems governments are over the planet have noticed the apathy in Argentina and are now all tripping all over themselves to tap this new source of free funds. We all know Ireland's problems and how their government has sold them down the river. Only a fool, or a bought and paid for shill on CNBC would deny that, yet not content with that the thugs in power there are now  looking to loot the Irish public pension plans. 

The hits keep on coming as this morning we received the news out of France that the French government is seizing 36 billion in pension assets. I would counsel the French government to remember that, while you can debate as to whom the guillotine was invented by, rest assured it was brought mainstream by the people of France against their ruling masters during the French Revolution. This little fact seems lost among the ruling elite there.


What a way to come back from a fantastic holiday! 

Actually I refuse to be brought down! I will ignore this news and shall turn on the gang at CNBC to find out which holiday retailer I should buy as this economy has without question recovered. Better yet, how much Spiders (ticker SPY) to load up on during this dip!

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.65 stop @ $7.98
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69

Friday, November 26, 2010

Happy Thanksgiving

Just wanted to wish all my readers a wonderful Thanksgiving Holiday. Given all that I rail on about we still have so much to be thankful for! Hopefully many of you are enjoying this time with family and loved ones like I am. If you are travelling please do so safely and see you back next week. 


Take care.



Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.65 stop @ $7.98
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69

Tuesday, November 23, 2010

Gold Trade

Quietly gold, using the GLD, has now rallied back to its break down level I mentioned in a post just over a week ago.In that post I indicated I wanted to see GLD break below the Nov 9 outside reversal candle's intraday low of $135. The corresponding number on DZZ that day is $8.45. 


Based on this rally in GLD or correction in DZZ (if you prefer) I am adding a 3rd unit to my long DZZ position here at $8.55.



Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.65 stop @ $7.98
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69

I Couldn't Agree More Dean

 I happened to catch a piece early this morning Ireland should 'do an Argentina' out of the Guardian by Dean Baker which is quite an interesting read. It is an excellent piece on the Irish situation and the death sentence that accompanies help from the ECB and in particular the IMF. Here are a couple of gems from Baker's article.


"It is worth remembering that Ireland's government was a model of fiscal probity prior to the economic meltdown. It had run large budget surpluses for the 5 years prior to the onset of the crisis. Ireland's problem was certainly not out of control government spending; it was a reckless banking system that fueled an enormous housing bubble. The economic wizards at the ECB and the IMF either couldn't see the bubble or didn't think it was worth mentioning."


Amen Dean!


"While it is often claimed that these institutions are not political, only the braindead could still believe this. The decision to make Ireland's workers, along with workers in Spain, Portugal, Latvia and elsewhere, pay for the recklessness of their country's bankers is entirely a political one. There is no economic imperative that says that workers must pay; this is a political decision being imposed by the ECB and IMF."


 Amen again Dean! but don't let me interrupt.


"The other point that should be kept in mind is that even a relatively small country like Ireland has options. Specifically, they could drop out of the euro and default on their debt. This is hardly a first best option, but if the alternative is an indefinite stint of double-digit unemployment, then leaving the euro and default look much more attractive."


Amen yet again Dean ! 

I seem to recall read somewhere else that Ireland has other options as well. I assure you that when Bruno and Rocco roll up at you shop door offering 'a bridge loan' to help you out you would be advised to politely decline it and pray they don't come back.  Same goes with the IMF. 




"What the people of Ireland and every country must realise is that if they agree to play by the bankers' rules, they will lose."


Please stop Dean I can't take it! How refreshing to finally hear a candid appraisal of the situation with which I couldn't agree more.


The IMF playbook, raise taxes, devalue currency, then repeat. If results lag simply repeat the above process over and over and over again until the landscape looks like the aftermath of a plague of locusts. 

All done first class via the confines of a suite with meeting room at the posh Hotel Intercontinental and a diplomatic passport to boot! Lovely. 


Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69

Monday, November 22, 2010

Black Death Arrives

There is an pandemic spreading across the globe. It has infected the itty-bitty minds of politicians and central bankers across the planet. This pandemic is far worse that The Black Death which struck Europe and Central Asia in the 1300's and ravaged the population, as it has now spread globally.

This plague's symptoms involve the transferring the private losses of bankers, brokers and financiers to the public at large via bailouts of free money, tricked up accounting rules, and blind ignorance of rule of law. It started here in the U.S. with TARP and is now spreading to Europe with Greece and now Ireland seeking a bailout. Portugal, Spain and Italy and most assuredly on deck.

I find it almost unfathomable as to what is transpiring. The Irish citizenry have been utterly and completely sold out by their politicians via their banking masters into debt slavery. I fail to comprehend how anyone with a firing neuron cannot conclude this to be an act of treason against the Irish state.

In typical fashion here is what one shill, who most probably has his career riding on the Irish and future bailouts, had to say on the topic;

“It was inevitable. Ireland had no choice but to get financial help,” said Nicholas Stamenkovic, a fixed-income strategist in Edinburgh at RIA Capital Markets Ltd., a broker for money managers. “The market will still be waiting for the details of the assistance and the conditionality, but there should be a relief rally tomorrow.”

And you wonder why I loathe these maggots. Spineless opportunists who adhere to heads I win, tails you lose. In response to Mr. Stamenkovic's unmitigated statement of self-preservation I will simply say that Ireland most surely has another choice. That being to tell the bankers and the rest of Europe to  F*%$ OFF ! The banks shall eat their losses as is customary in any free market economy, assuming you understand the definition of 'free market economy'. 

Then, in a fit of shocking sobriety, exhibit some backbone and follow the crumbs and start prosecuting the bankers responsible for this ponzi financial pyramid with some sentencing that sends shock waves throught the financial community of Europe.


Do this Ireland and I will be the first to step up and buy Irish bonds with both hands. My guess is that countless others with some common sense will do the same as well.


More Mishkin


Did you happen to catch the "bought and paid for" piece of work Frederick Mishkin on the propaganda network (CNBC) this morning? Did you even need the sound on to notice that it is bullshit rather than brilliance that emanates from Mishkin's mouth and only to the highest bidder.


Regular visitors to my blog might remember my piece Frederick Mishkin - Corrupt Imbecile a few months ago. If not, I encourage you read how this former Fed governor, titan of monetary policy was paid $124,000 by his many banking pimps - in this case out of Iceland - to pen a glowing report on said economy back on 06'. Mishkin not only failed to disclose this compensation in lieu of glowing report, but the report mysteriously had its title changed once the economy blew up spectacularly. 


You might think that someone from a 'financial news' network like CNBC might be interested in broaching this subject with Mishkin. You might think penning complete horse shit, for the Icelandic banking cartel for a fee without disclosing it might be newsworthy? Well, you'd be wrong if you thought this for if you did you would be confusing the propaganda network known as CNBC with a serious financial news outlet interested in getting out the truth. Digging into this conflict of interest travesty, with a former Fed governor would require the monumental investigative journalism skills of Hansel and Gretel or maybe those of a freshman undergrad journalism major.


Go to CNBC's websit and you can catch the video of the interview here. Couple of Mishkin's comments really stuck out to me.


"QE 2 only would be something that would have powerful effects if it was very large" and 600 billion is not a very large program."


When asked whats large he replied;


"a trillion, trillion and a half."


I really gotta hand it to those bankster terrorists, when they buy and pay for a shill like Mishkin, they truly get their money's worth. No pikers allowed around here.


Hang on now. It gets better later in the interview when Mishkin identifies the Feds dilemma as;


"unfortunately the Fed has gotten into a box in the way that they communicated this whole strategy was very, very problematic."


Yup, if the Fed would only spin the story better us simpletons would then 'get it' and all fall in line lovingly knowing the Fed has our best interests in mind.


I encourage you to watch the entire clip as it is yet more evidence in helping you understand why we are where we are as an economy. Paid mercenaries like this are in the decision making chairs. Their policies and decisions serving their masters interests could never be in question, only their delivery or how they couch the wording of said policies. how truly pathetic and sad for our nation.


Insider Trading Scandal

It seems there is trouble in hedge fund land. It seems the valet boyz have been engaging in some illegal activity. Can you imagine. I know how shocked you are given the impeccable reputations of the schools that churn these psychopaths out.  

Could it be that the white shoe boyz set are like that? I thought it was only the hoods from the 'other side of the tracks' that did that stuff. 

Expert Networks huh. That's what you're calling it now. I wonder if rail yard workers the likes of Griffiths and Steffes were part of that network? Its all too funny. By the way, it couldn't be happening to a classier bunch of down to earth type people now could it?


I will say it again to all you parents out there contemplating sending your son/daughter, or niece/nephew to a prestigious Ivy league school for that fantastic biz school education your pals rave about on member guest day. Do yourself an enormous favour and go buy 2 movies. 

The Sting and Boiler Room

Please note that after watching Boiler Room, you will fully understand that the only difference between J.P. Morgan and J.T. Marlin is simply cufflinks. 

These 2 movies offer a treasure trove of information as to how Wall Street's machinations work. 
Investment banking? 
M&A?
Institutional Sales? 
It's all in there. 

All sarcasm aside, there is more educational material in these 2 movies than 4 years plus gone and hundreds of thousands wasted,  no, dumped into enhancing the professors 'Guilded  Edge' retirement plan' could ever hope to provide. 

Your children and yourselves will learn more about the inner workings of our capital markets in these 2 movies than they ever could from the likes of Mishkin & Co. 

I beg you , trust me on this one you won't be disappointed !


NFL 

I see the NFL's Minnesota Vikings fired coach Brad Childress today. How fitting. The team's poor performance wouldn't have anything to do with Brett Favre now would it? Would be so politically incorrect to go and fire the 'golden boy' as that would require real onions, alongside acknowledging the facts of the issue which seems to be avoided at all costs over here in the U.S.A.

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69

Friday, November 19, 2010

Things I Noticed

I noticed GM is threatening the IPO issue price of $33 today. I sure hope someone in the underwriting group has taken the reins, or at least is sober enough from last nights bender to notify all members of said group that $33 is the Maginot line. 

I noticed Ben Bernanke is criticizing the Chinese for their currency policy.  Bernanke said that "undervaluing the Yuan has thrown a monkey wrench into the global recover.". Don't you just love it when one heroin dealer on a street corner chastises and reprimands another heroin dealer's business practices on the other corner. Too funny.


I noticed the Ireland thing has gone away. Whew! What a relief that is. Oh yeah, and the Greece, Portugal, Spain and Italy thing too. Almost forgot about them.

I noticed Harrah's pulled their IPO today due to ahemmm.... market conditions. With the markets trading within spitting distance of their highs you use that line guys? Come on! Might I suggest some different spin doctors for your next press release. Something like maybe....

"due to an excess of popularity our proposed underwriting has generated with the pool of sophisticated investors we have tapped and their referenced desire for a more flexible, popularly priced security with additional features we have decided to postpone the offering until we can adequately accommodate all interested parties."


What'd ya think? Pretty good huh. Even Greenspan would like that piece of nothing garbage, oops, I meant linguistic masterpiece.

Sadly it looks like even the pool of hedge fund valet fools who'd use OPM (other peoples money) to buy anything accompanied by a knock em' out roadshow with plenty of liquor, stone crab and part time peelers in short skirts smelled that one out. Come on Harrahs get with it!


I noticed that University of California is hiking tuition 8%. I have a hint for the board of regents at Cal, Do yourself a favor and with this tuition hike don't forget to give the football and basketball coach's a $500k raise each. While your at it. Make sure all you board members continue to fly first class to each garbage 'continuing education' junket they attend. Also make sure that any events you sponsor are held at the finest 6 star resorts. GM and the Administration has also indicated it wouldn't hurt if you increase your automobile allowance as well. Just a thought. 


Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69

Mentally Ill Are We?

Recently a friend of mine forwarded a video to me. I wasn't go to share it with readers but I changed my mind.

The reason? 

Well, this morning I awoke to the Drudge Report headline of '1 in 5' Americans Mentally Ill. Shockingly (not) the headline link on the story at Drudge takes you to the propaganda network, CNBC,  for the article. How ironic!

Do me a favor. Click on the link above and read the article on how you are all mentally ill. 

Then come back and watch this short video below. 





I love the young adults stat from the article where the 18-25 group had the highest level of affliction at 30%. 

Recruiting em' young aren't the drug boyz? Gotta keep that annuity going, right?

Actually I know who's mentally ill. It is the psychopaths (wolves) out there producing and foisting this poison on the unsuspecting masses (sheep). For those that forgot, please remember the analogy that the world has basically 3 types in it, the sheep, the sheep dogs and the wolves. 


Hope you enjoyed the video. Pass it on to any loved ones you think might fall pray to the legalized pushers among us. For what it's worth I tried to keep the rant short this time !!



Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69

Thursday, November 18, 2010

I love Free Market Capitalism

The General Motors IPO sold 478 million shares priced at $33 per share. 

It opened today at $35. 
It closed today at $34.19


Today's volume on GM today? 452.5 million shares or 94.6% of the entire float. 

I love free market capitalism, or was it a big ponzi scheme. I cannot remember which. Maybe I'll ask Warren and Charlie over at Berkshire Hathaway. 

Speaking of Mr. Buffett, GM chief Akerson take note. Uncle Sam expects a prompt thank you letter from all its grateful nephews. 


Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69

Back Aboard TLT

I am punting the long end of the bonds via TLT here at $95.51 with a stop below today's lows. 




Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04
Long 1 unit Barclays 20yr Treas Bond ticker TLT @ $95.61 stop @ $94.69


Silence Gives Consent

Unlike others I am not going to rain on the GM parade today. What I am going to do is sit in awe and marvel at the propaganda machine Wall. St., Washington and the media can create when they put their minds to it. I used to think Phil LeBeau of CNBC was a reporter and not a cheerleader. Sadly, he is not immune to the virus that afflicts those at the dis-information network, CNBC. It is all so fascinating to watch. I was fully expecting GM CEO Akerson so come running onto the NYSE floor through a tunnel of smoke and Vegas showgirl's kicking legs like a quarterback at the Superbowl.  Alas we had to settle for CNBC groupies around the GM CEO. Either way, former Nazi propaganda minister Goebbels would be proud, no, make that envious of it all. 

The New GM.... jobs bank still exists, bloated dealer network, pension legacy cost, etc, etc. Word is that GM contributing 6 billion to the outstanding unfunded pension liability of approx. 20 billion,  doing so via 2 billion in GM stock and 4 billion in cash. (have we not seen that movie before, stock in the pension plan) I wish the shareholders and pensioners counting on this stock much success in the future as time will tell how it all turns out. 


I am sure most of you had a chance to read Warren Buffet's thank you note to the U.S. Government in an op-ed letter he wrote in the NY Times. If not you can  read it here. I am at a loss to comprehend the hubris and arrogance that drives these financial 'masters of the universe' types. You'd think they would be content with the loot they've taken and just slink off into the dark gutters they inhabit but you'd be wrong. No, they step right back up with pieces like this thank you note as if to rub salt in the wounds of anyone sober enough to recognize it.

This feeble attempt at justification, attempting to maintain their facade of respectability via a their side of the story is infuriating. Barry Ritholtz, over at his fantastic blog The Big Picture, penned mock letter entitled Dear Uncle Sucker, one that the oracle of Omaha would have written had he been injected with truth serum. 

We are faced with a disease in this country that has gone viral. Actually it is an epidemic. This disease of masquerading we fixed everything and denial of anything to the contrary.

I have said it before and will say it again. The leading lights of our our business community and our economy are all mum on the subject. They have run and hid.  They know nothing was fixed, simply papered over. Not one of the leaders of the U.S. business community has had the onions to step up and call out, that which is happening around us, for what it is. The brazen looting and gutting of the U.S. economic system. 

Fearful of reprisal? 
Fearful of ostricization? 
Fearful of being left off the party circuit list?

Or simply spineless when it counts? 

We should all thank our lucky stars men like Welch, Gates, Dell, Trump, Blank, Pickens, Langone, Ford, Jobs, and Buffett were not around and depended upon back in 1775, or we'd still be bowing down before her Majesty. 

Oh I hear fringe voices of the blogosphere. I hear people like Bill Black stepping out and speaking out, or Ron Paul and others like them but not one in the mainstream business community. Where are the rest of you purported 'big hitters'. 

Steve Wynn? I have heard your interviews, your business savvy. Where are you? Doesn't any of this phase you. I know you understand what is going on? Do you simply ignore this looting of the nation, this heist of a lifetime?

To all you Fortune 500 types out there I remind you of what Plato said;


"YOUR SILENCE GIVES CONSENT".



Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04

Tuesday, November 16, 2010

Bonds: Then and Now

Readers know I have been bullish on the long end of the bonds for some time. I have felt we are headed down Japans road, (deflation, contraction, etc) which means lower yields ahead. The land of the blind the one-eyed man is king, blah, blah, blah.

As much as I disagree with 'the bonds are in a bubble' crowd, I also understand the possibility that they could be correct.  In a post I put on back in early Sept this year Bonds.... Yet Again I counted their bubble claims but I also gave quarter in which I stated the following:

"Well I am here to inform you that if the bond market bears are correct and U.S. Treasury market is in a bubble and does implode heaven help us for YOU WILL NEED THAT SHOTGUN, AMMO AND WATER more than your investments for damn sure!

I still believe all debt is either paid back on defaulted upon. We had the mother of all bubbles in debt and credit creation. This is not being paid back. The boat is sinking faster (deflation) than those in charge can pump the water out via money and credit creation (inflation).

I suggest you pray that the U.S. Treasury market holds together or you will need to prepare for Weimar Germany, Argentina, or Zimbabwe or any other example of chaos throughout history. Remember this is just one idiot blogger's simpletonian opinion on the subject."
Here is a chart I have shared with you before. 
Do you remember it? 
The time has come to have another look. 



Do you see the failed rally in bonds into 1931 denoted on the chart as Quality Flight Bonds. My deepest worry, more than all the others I harbor combined (and they are numerous), is that our bond market today is at that same failed rally juncture as the chart above. I truly pray that I am wrong. You can look for yourself below and decide.



I hope I am wrong. The Fed thinks they can force investors into 'the Feds preferred assets'. The Fed's ignorance and arrogance is beyond comprehension, they will enslave us all if sane adults don't appear on the scene soon. One might want to familiarize ones self with insurance policies that go by the names Benelli and Glock. Let's just pray 87.50 holds on the TLT chart but if it doesn't he who panics first will have panicked best.

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04

AXP and CAT

I have been watching both AXP and CAT for some time. First up American Express weekly view.



Next up Caterpillar ticker CAT weekly view.




Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.61 stop @ $8.04