Wednesday, July 27, 2011

Regarding GM - Houston.... We Have a Problem !


Just in case Da boyz over at the Primary Dealers club haven't returned from their martini lunches yet, consider this your wake up call for a stick save on GM.

Tuesday, July 26, 2011

GLD vs GDX

Regarding the topic of Gold. Can someone please explain to me why this.....

is not leading this....


Maybe one of those brilliant 20 something Wall St. analysts on CNBC can shed some light here for this dimwitted blogger.

Back in the Saddle

Okay, back at my post refreshed and relaxed from a nice vacation in Northern Michigan. We had a fantastic time despite the oppressive heat. Venetian festival was in full swing in Charlevoix.

While away I had the opportunity to play some wonderful golf courses with my wife and some of her family. Note to anyone interested....DO NOT play a course the day following a USGA Amateur qualifier as we did with The Heather at Boyne Highlands.

Actually, check that. You should do it. Do it, just when you think you, and any of your friend's, golf game is mustard. Just when they're "getting too big for their britches" as my father would say. Do it as a reminder of what a REAL course plays like. Where the greens are so slick you might think you were putting on a pool table. Where the rough is so long it flops over like a Billy Ray Cyrus hairdo and you pray your approach shot to the green lands in a bunker so you can have a shot at getting out.

Yes, by all means do it.... and put a bib on and sit back .... for a nice heaping slice of humble pie.

Okay so what did I miss while I was away.

How about ZERO.

Debt ceiling debate you say. Are you kidding me? Yes by all means borrow more money. Right Greece? Borrow more money to fix a debt problem.
How bout we rename the whole charade Wrestlemania 47? Why not, only Hulk Hogan and King Kong Bundy are missing. I ask yet again, where are the sane adults? Are there none in the room. Ron Paul excluded obviously.

The markets. You want a deal. How about dropping the Dow 500 pts in an hour or so after someone walks out of meeting.

Then, how bout a deal, raising the ceiling via the formation of a super-congress or the 4th legislative branch of government, (please ignore the inconvenient fact that the Constitution doesn't mention or allow for this 4th branch as the Constitution is a scrap piece of paper to be ignored) and the Dow up 1000 pts?

Now there's not problem with any of this so long as they make sure Michelle Bachmann doesn't outlaw internet porn or the SEC will actually have nothing to do and be forced into investigate trading around this news so the log books show they had the computer on.

This is too much to take. Someone wake me when its over.

Are you watching the parade of 20 something Wall St. analysts on the propaganda network today? You really gotta appreciate 20 something, Ivy league educated, daddy plays tennis at the club with my boss analysts. Real seasoned pros putting out recommendations to be peddled by furniture salesman (due apologies to furniture salesman as they actually sell an item you can use and has some benefit).

Just make sure you ignore the likes of a Howard Davidowitz as he could in no way shape or form match wits with these boy genius'.

You simply cannot make this up I tell ya. Back shortly.

Monday, July 11, 2011

Consider This

The markets are the markets. They are what they are. Things will matter when they matter. Nothing mattered in 1999-2000 till suddenly things did. Nothing mattered in 2008 until suddenly things did. This time will be no different, no matter what the Fed, the Treasury, the IMF or any other government intervention/manipulation crew does. The lies, the deceit, the distrust all there from top to bottom. But there also comes a time when the bigger picture, something more than, how do they say on Wall St., oh yeah the benjamins, becomes more important. Some news items have passed by of late and not only have caught my eye, but have set the mouse in the wheel upstairs a runnin' once again. Consider this.....

The story about the TSA screener down in Ft. Lauderdale who has been robbing passengers blind and selling his loot on eBay.

Or the story that the FDA tells us we cannot drink raw milk yet we should consume drug, chemical, hormone and Lord knows whatever else, laced FDA approved pasteurized milk.

News Corp hacking into to telephones. British Royal family (parasites as they are) security detail selling sensitive and secret travel and whereabout information to reporters (or the highest bidder).

Or maybe you missed the one about the Miami police dept going after bystanders who were filming them on duty. It appears they don't like it when the sheeple do that.

But wait. There's more.

How about the the academic cheating story out of Atlanta. Yes the teachers and the board administratiors had cheating parties.

Then there's the story, documented via video, about a New Hampshire judge ordering a false arrest. Yes his honor claimed the individual threatened him. What his honor didn't know was the citizen he ordered the bailiff to arrest for threatening him was also recording the event. Are you shocked to learn said Honor then banned recording devices in the courthouse.

And if you really have been living under a rock you may be unaware of the real gem of a story regarding the ATF's Fast and Furious gun debacle.


Can someone please explain to this simpleton what the heck is happening here? Can someone explain why when you tout, herald, and promote the Constitution or the bill of rights you are looked at as a lunatic. Now I do realize all these US flag lapel pin wearing politicians and administration appointees are all hard core die hard patriots to the bone, but are there any adults in the room? You know, people who know right from wrong, who know enough to know when the whole temple has become diseased and perverted beyond recognition and who know not only how to spell constitution but have actually read the document.

Mike Adams runs a fantastic site called Natural News. Mike had an excellent piece recently regarding the ATF gun running travesty entitled US Government openly admits arming Mexican drug gangs with 30,000 firearms - but why?

I strongly encourage you to read his piece on the subject. His conclusions are quite interesting.

There are things going on in this country that leaves one's head spinning. I have a very uneasy feeling that the monitoring and observation of what's left of our capital markets may be the least of one's concerns going forward.

Friday, July 8, 2011

Fiscal Austerity = Kryptonite

This morning we can take a long term weekly look at Google, ticker GOOG, below. Note the uptrend line (blue) break back in 08' followed by a serious shake and bake to kiss the broken trend line from underneath.


Now lets have a closer look at GOOG via the daily chart below.



We have broken down out of what could appears to be a substantial rising wedge. We have not only kissed the trend line from underneath, but da boyz had the nerve to even violate the prior resistance indicated by the purple line from the gap down.

How many Googlers bought this fake and shake? Are there any Googleites left or have they all converted religious affiliation to AAPL?

I happened to catch James Paulsen of Wells Capital Management yesterday (you can view the segment here) on the propaganda network (CNBC). Regarding economic growth, or lack thereof, Mr. Paulsen had this gem;

"soft patch that was the product of primary and temporary forces - weather and Japan - and also some market forces"

Yes it was the weather and if that excuse makes you a little suspect of you fund manager throw in Japan for good measure. Maybe add in an Icelandic volcano, sunspots, an eclipse and el Nino and you have the makings of someone involved in the management of $360 odd billion dollars.
Absolutely mind boggling.

But Mr. Paulsen is not worry free. He does worry about fiscal austerity road we are going down.

"we got a wonderful economic laboratory experiment going on in the world right now."

Is that what he thinks this is, an big experiment.
Nice attitude. I guess you can feel that way when it's somebody elses $360 billion right?

It is not often that you get someone talking and you can disagree with pretty much everything that comes out of his mouth. In Mr. Paulsen's defence, he seems like a decent cat, as oppose to my buddy David 'investing is easy' Tepper.

Sadly Mr. Paulsen's solution is to promote growth period as it always works. Now there is nothing wrong with promoting growth. The problem is Paulsen and his ilk growth don't promote growth as you, I, Ayn Rand or anyt other TRUE free market capitalist would - hint SAVINGS - rather theirs is a perverted view of growth that is created via mountains upon mountains of debt. You see Paulsen's word growth is simply code for give us all more heroin (DEBT) Mr. Bernanke and Mr. Greenspan before him., Its always worked in the past right Jim? Like Pavlovs dog. You must understand that the fiscal austerity that Mr. Paulsen abhors and is petrified of is to people like him as is Kryptonite is to Superman.


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 @ $96.70
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 @ $98.25
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

Wednesday, July 6, 2011

Stockman on Bernanke

I hope everyone had a safe and enjoyable July 4th holiday. We spent it in northern Michigan, Charlevoix to be precise, enjoying the spectacular weather with friends. I know da Boyz on Wall St. enjoyed their weekend with the vapor lock run up last week into the holiday.

I came across a clip of an appearance on Dylan Ratigan's show by former Congressional Budget Office (CBO) director David Stockman. He has some non-conventional, quite interesting things to say including the brilliant Ben Benanke.

Interesting how he mentions the farce that corporate cash levels are given .... ahemmm.... the corresponding corporate debt outstanding. Gee, now where have I heard that before!! But why focus on facts when fiction and lies sell so well.