Thursday, August 25, 2011

Patience Rewarded - Punting MasterCard

Patience has its virtues. I missed the chance at Mastercard a few days ago and refused to chase it. This morning I am taking the oracle's BAC bounce, don't get me started there, to get short 1 unit of MasterCard (ticker MA) here at $324.92

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
Short 1 unit MasterCard ticker MA @ $324.42 stop @ $330.11

Wednesday, August 24, 2011

Question of the Day

I was having dinner with a good friend last night, a business owner who follows the market closely, After some interesting discussion regarding inflation I posed the following question to him regarding the 'action' of the markets, which I thought worthy enough to share this morning.

If I gave 2000 (of the largest or most active professional sports bettors across the country free money), let's say $50 million, that could be used for sports betting only (further to that if they lost it, there would be another 50 million waiting for them) then what do you think this would do to the lines (or the odds if you prefer) on the games or events?

Something to consider.

Tuesday, August 23, 2011

Send Your Kid to Princeton, Be My Guest

Words cannot do this Keynesian imbecile enough justice. How he can stay employed is a testament to the ability of 'anyone can make it here'. All I can say is... send your kid to Princeton, be my guest.


Friday, August 19, 2011

An Organized Scheme

Bloomberg had an interesting story that almost escaped my attention yesterday given all the wailing and knashing of teeth by the sages on CNBC. The piece Chinese Protest $5 billion Losses Tied to U.S. Reverse Mergers.

Have a read over the piece and you can get an idea of the breed, say like NYSE chief Duncan Niederauer, that inhabit so much of Wall St. One quote from the piece in particular caught my eye;

“We weren’t cheated by an individual, it was an organized scheme,”

Hmmm just like the housing ponzi we had over here, no?

An organized scheme.

Can you imagine all the malfeasance, fraud and outright thievery we have experienced and not one behind bars. Mind boggling no? Unless you were part of the ponzi. Top it off with a bailout which was akin to robbing the bank the day it reopened after it closed from your first robbery. Brazen I tell ya. Organized scheme from top to bottom.

Don't for a second think those Chinese are the only ones sitting on losses from all this reverse merger garbage. All the momo boyz over here were all over this crap. The difference over there is the people don't sit on their duff eating Doritos and drinking Dr. Pepper when they get stiffed. No they tend get up and take to the streets with their pitchforks.

This is all the more comical given the pronouncements about how our exchanges are the envy of the globe. The purported creme de la creme of the capital markets. How dare one want to list let alone trade one of those unruly, populated by scoundrels, wild west bourses like the Kazakhstan Stock Exchange or the Mongolian Stock Exchange. Sure, why would you when you can get jobbed right here at home without the jitney fees and all the long distance hassle. A smooth hasslefree shakedown, right Duncan?

I love it when Duncan gets on CNBC from the floor of the NYSE and tells us all how liquid, how transparent our markets are. How respected and coveted a listing is on the NYSE is. Well, it may have been once upon a time, until we started paying out on quantity vs quality with the NYSE chiefs (past and present) selling out for listing fees(which get you bonus') to Chinese pieces of shit.

Am I being to harsh on Duncan? Maybe.

I am sure he will argue that its not his responsibility to vet these listings, that is the job of investors and their commissioned/fee brokers and advisors. Okay. I'll bite at that, just don't tell me over and over again that your bourse is the most transparant the most above board around. Just have the onions to come on and tell me that you list for fees and its everyone for themselves, caveat emptor. Then I will say, hey, the NYSE's Duncan over there had a great year doing what he does, listing stocks on his exchange. My problem is when the alley cat tries to pawn itself off and a pure bred Persian (or something like that but you get the picture).

Actually, when you stop and think about it, these Chinese listed reverse merger stocks fit in perfectly with so many purported blue chip listings on the NYSE. Parameters like accounting standards you can trust huh?
You mean like AIG writing policies they had no hope in hell of honoring.
Enron? Well that speaks for itself.
Bear Stearns? Ha ha. too funny. Lets ask Cramer that one.
Lehman Bros.? Sure, shorts were way off base on that gem.
Citi's structured investment vehicles or SIVs as the Ivy league the MBA's call them?

Yes the NYSE is a bastion of transparency and propriety. No bookkeeping shenanigans going on at all. Makes me think of the boiler rooms the cufflinked Wall St. boyz ridicule. Well, at least people had a fighting chance with a boiler room, at least you knew you were in a den of thieves and never got ambushed.

Now couple all this with an SEC that can do basically 2 things.... surf porn and destroy evidence and yes Maria (Bartiromo) we have the makings of capital markets that only a moron would question the integrity of.

You'll have to excuse me now as I'm off to investigate seat pricing on the Colombo Stock Exchange in Sri Lanka.

Thursday, August 18, 2011

Do We Still Have a Justice Dept.?

I have railed about all the fraud and avarice involved in this Great Ponzi, about how the major culprits, (too many to mention here) involved have all escaped justice so often as to make many readers numb. I have also mercilessly ridiculed and insulted the SEC and its eunuch of a former chief Chris Cox.

I was not shocked to catch Matt Taibbi with yet another article on the subject. His latest in Rolling Stone Is the SEC Covering Up Wall Street Crimes? is a must read. Please take the time to read it.

There is also a follow up article on Marketwatch by one Ronald Orol yesterday in which he often cites Matt's article called SEC may have destroyed documents.

“From what I’ve seen, it looks as if the SEC might have sanctioned some level of case-related document destruction,” said Sen. Chuck Grassley, Republican of Iowa, in a letter to the agency’s chairman, Mary Schapiro.

“It doesn’t make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what time frame, and to what extent its actions were consistent with the law.”

Agency staff “destroyed over 9,000 files” related to preliminary agency investigations, according to a letter sent in July to Grassley, the top Republican on the Senate Judiciary Committee, and obtained by MarketWatch.


Land of law and order huh? Justice for all huh? Careful Grassley, your campaign coffers may suffer if you offend your banking masters.

The allegations were made by SEC enforcement attorney, Darcy Flynn, in a letter to Grassley. Flynn is a current employee, and according to the letter, received a bonus for his past year’s work.

Flynn alleges the SEC destroyed files related to matters being examined in important cases such as Bernard Madoff and a $50 billion Ponzi scheme he operated as well as an investigation involving Goldman Sachs Group Inc. GS trading in American International Group credit-default swaps in 2009.

I fully expect Darcy Flynn to suffer the same fate as SEC whisteblower Gary Aguirre. He was the one investigating Morgan Stanley's CEO thug John Mack for those that have forgotten and had his career derailed.

"The letter goes into particular detail about Deutsche Bank, the former employer of current SEC enforcement chief Robert Khuzami as well as former enforcement chiefs Gary Lynch and Richard Walker.

The allegations that the SEC destroyed documents were first reported by the Rolling Stone magazine in a report Wednesday."

Yes enforcement chief Khuzami is fully willing and capable of investigating his former employer and his buddy boyz that reside over at Deutsche Bank. Larry Kudlow may drink that kool-aid but I don't even though I was born at night, sadly just not last night.

Let me get this right. The revolving door between the SEC and Wall St. has spawned an agency that potentially has destroyed evidence involving players involved in the greatest heist mankind has ever seen.

Do we still have a justice department left in this country?

still wondering why I am starting to agree with those that suggest the whole temple here perverted and diseased?

Maybe true patriots (you hear that Larry Kudlow??) like Aguirre and Flynn should have called Janet Napolitano at Homeland Security under her See Something Say Something program because what these unabashed thugs are doing to the country is financial terrorism plain and simple.

Now I have a question for Maria Bartiromo of CNBC. Dear Maria, are you still wondering why there is no trust in our capital markets? After getting a whiff of the rot over at the SEC do you still need a lowly idiot, room temp IQ blogger to explain to you how to restore it? Here's a hint, it involves acknowledging and publicly saying extraordinarily unkind things about your banking and Wall St. advertisers, but that would take a real journalist to do.

Yes, There Will Be Growth in the Spring

Been busy tweeting today, as there is much to tweet about. Widely followed and well respected Wall St. analyst Chance Gardner (Peter Sellers of Being There) dismisses the dismal Philly Fed number today of -30.7 vs expectations of +2 and reaffirms his call that there will be growth in the spring.



Wednesday, August 17, 2011

Quick Look at MasterCard - MA

I was taking a peek at purveyor of debt MasterCard, ticker MA, below is a weekly view of the stock.

A move below 317 which basically was the 08' high would signify for me that a top of some consequence may be in and game on to the downside. Please take note the large channel formed since the beginning of 09'. So now a closer look via the daily below.


We seem to be bumping up against the long term channel. here via a double top. Note the lacklustre volume as the right side of the double forms, not that volume means anything in the robotic HFT era we live in, right Duncan Niederauer?

Regardless I would like to get short some MA but will not chase it as I do not have:
1) an open credit line with the Fed and
2) an expert network I can call on for news.


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

Yes Jack, He'sThe Only Adult in the Room Period.

I have asked the question before regarding this absolute mess we find ourselves in here, where are the adults in the room? Fortunately, one journalist, CNN's Jack Cafferty, is asking the same question now regarding GOP presidential candidates. Regular readers of this blog know my view all too well. So, yes Jack, Dr. Paul is the ONLY adult in the room period and quite frankly our only chance.


Tuesday, August 16, 2011

It Takes a Comedian

Lousy Japanese GDP earlier this week, lousy German GDP but don't worry, according to David 'investing is easy' Tepper school of fund management, the authorities will intervene and stocks go up. Just lovely. Don't you see how easy it is to invest anymore.Ya just gotta get your kid into an Ivy league MBA program so he too can be a genius fund manager - maybe even become another Jamie Dimon or Lloyd Blankfein - of others money cause explaining your kids being a dog groomer at Best Friends doesn't fly as well over drinks with the country club set as a Wall St. guru, 2+2=6, master of the universe.

Did you happen to catch former speaker and GOP presidential candidate Newt Gingrich on the propaganda network this morning? Too funny this hologram of a person. Gotta love how when he held the speakers gavel and his party owned the white house he was as soft as a wet noodle, never met a spending initiative he couldn't support. Might I suggest Mr. Gingrich wonder off into the pasture of lobbying where he can join the Dacshle's and their ilk, besides it might help you in paying your jewelry store tabs. I could be a lot more harsh on this flake but I will suffice will simply being offended that he still gets called Mr. Speaker by the grovelling eunuchs in the mainstream media.

And while on the topic of presidential candidates check out the short video below of what Jon Stewart of the Daily Show had to say about the mainstream media and their ostracizing of the real deal and quite frankly our only hope in hell, Ron Paul. Funny how it takes a comedian to say what is completely obvious to anyone not in a prozac/ambien induced or a bought and paid for propandist regurgitation haze.






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

Monday, August 15, 2011

Some Random Thoughts

Apologies for not posting as I have been hiding at a Dick Cheney-esque 'undisclosed location' as the markets gyrated up and down last week. Yes, there is absolutely nothing wrong, as these gyrations are completely normal and are how healthy, robust capital markets function. Too funny. Hey Duncan Niederauer of the NYSE, maybe a few score more high frequency trading outfits swapping a couple hundred shares back and forth 9 to the exponent 57 times which you can then tout as liquidity might reassure da boyz and da girlz on Fast Money that all is well, seeing as how the Chinese reverse stock listing idea you had worked out so brilliantly.

Did you happen to catch the GOP debate on television over the weekend? I am an unabashed supporter of Ron Paul as I believe he is our only hope. Regular readers may have noticed that I rail on the mainstream media both financial and balloon boy regarding their shallow coverage. Many take issue with this and have let me know as much via email, which is fine. I have plenty of family members who drink the kool aid of unless CBS, ABC or Fox or any of the other approved for viewing outlets says it it couldn't possibly be true.

Well, not only are these mainstream purveyors outlets of propaganda they are history revisionists as well, but sometimes they truly outdo themselves like this one from Politico regarding said GOP presidential candidate debate. The original title of their article was entitled Michelle Bachmann wins Ames Straw Poll, Tim Pawlenty gets third. Well if you search the article now, as I did today, it mysteriously appears edited to Michelle Bachmann wins Ames Straw Poll.

Check out this CNN video below on the subject.




I also happened to catch JP Morgan's chief Jamie Dimon on CNBC last week as he scoffed at Meredith Whitney's notion that many of the U.S. banks are zombie banks. Are you shocked CNBC ran the segment of his rebuttal upwards of a dozen times. Click your heels Dorothy and repeat after me 'there's no place like home, there's no place like home, there's no place like home". Poor Jamie, he still thinks, everything thinks there really is a wizard behind the curtain.

I see the insiders insider former Bear Stearns CEO Ace Greenberg blaming any economic woes we have on half the country being under water. Yes blame the weather. No double dip, or at least he hopes, expect anything less from a crumb chaser. At least he could have the humility to thank his bought and paid for puppets for suspending mark to market accounting rules so everyone can pretend to be solvent to keep the bonus' flowing.

Op-ed piece this morning from the oracle Warren Buffett that he wants to pay more taxes. I wonder if Mr. Buffetts new religion has anything to do with the pitchforks and boiled rope he thinks are in the hopper waiting to be unveiled. I wonder if the oracle thought this way before he had slathers of dough he couldn't spend in multiple lifetimes. I wonder if Berkshire's under-hypocrite Charlie Munger has advised the chief hypocrite Buffett that he is free to send a cheque into the Treasury for whatever amount he deems appropriate to clear his conscience. Of course he knew nothing about Lubrizol, or bailouts or anything else right. Genius stock picker, serial amnesist when it comes to everything else.

Lovely. Mark my words, when the entire story is told, the history books will not be kind to Mr. Buffett, Greenspan and the other architects of the great ponzi.

Short selling ban in Europe. What does one say about this other than to laugh are the simpleness and idiocy of those in charge. Pathetic the lot of em'.

Saturday, August 6, 2011

Schedule a Chat With Bernie

My apologies as I was away from my desk today playing in the Coaches vs Cancer Golf Tournament at Walnut Hills up in beautiful East Lansing Michigan. It was a beautiful day with a great turnout (there was a waiting list to participate). Mucho thanks to all the sponsors, especially lead sponsor and locally owned business Two Men and a Truck!!

I received an email recently from a long time reader asking about my spotty posting. A couple of reasons. My wife and I have had an absolute full calendar of late between work, family and friend commitments so please forgive me.

I find myself writing posts and then 2/3rds of the way through saying '"ta hell with it" and just hitting delete. I think many get sick of my ranting and raving but alas there is much to write about, think what the historians will write about my friends.... what they will write about Czar Napolitano and her See Something Say Something, and the Patriot Act and the Super Congress and the debt ceiling and the war on drugs and war on terror and the war on poverty ..... well.... you get the picture.

Besides all this, what, will people really miss a post from a simpleton idiot blogger? Well, lets just ask Tobias Levkovich, chief equity strategist of Citigroup who this morning on CNBC said, amidst all this turmoil in the markets the last thing you should be doing is listening to some blogger on the net.

Too funny Tobias. Should one be shocked a Wall St. equity strategist recommended investors and market followers avoid readers bloggers? Yes, Tobias one should ignore one of the few groups of people who actually saw things coming. Funny how a group of idiot bloggers can see that which crumb chasing, sell your wife and daughters into sex slavery for a bonus Wall Street chief strategists cannot. Too funny Tobias.


It appears that after the 500+ pt down day on Thursday we got that real 'rip your face off rally' some guest vegetable on CNBC was expecting the following day to the tune of 60 odd pts. Followed up by todays 600+ pt down down I would expect that he would be calling for yet another rip your face off rally.

Are you shocked to see oil tanking here?
Shocked to see bonds rallying here?
Global garage sale people.
Everyone in debt up to their eyeballs compliments of the greatest bubble the planet has ever seen. The credit bubble. An orgy of free money given to anyone and everyone. Forget about debt to produce but debt to consume. What would your granddad think of that now??!! Topped off by an Ivy league educated elite who simply piled more credit on top of any bad credit. (think 2+2=6 and you start to get their logic).
Welcome to the land where the smartest guys in the room, along with the full time meddlers in the economy have distorted things to such an extant as to make so much seem crazy. We live in a world built for mountains upon mountains upon mountains of debt. When that debt ceases to expand you have overcapacity. Just imagine what happens when it contracts. So just as Bernie Madoff needed new investors to fund his ponzi so to does sthe global ponzi needs more debt created to fund itself as well.
The debt, which is what credit is, remains and it either gets paid back or written off.
Just my opinion.

I heard today that billionaire David 'investing is easy' Tepper is dumping financials. Hmmm. Interesting to hear he is selling, considering that I was under the impression, via Mr. Tepper himself, that if the economy gets better -stocks go up, and if the economy gets worse - the Fed steps in and makes stocks go up. I may be an idiot blogger but I would think he would be buying given his prior dissertation. Anyway a word comes to mind right now.... charlatan.

I would counsel all members of the Fed and the ECB, heck Central bankers the world over to have schedule a chat with Bernie Madoff. This might be helpful because while early, it appears that the facade they lord over, also known as the Great Ponzi, is becoming more and more exposed by the day. Bernie knows all to well how the demise of a ponzi sheme progresses as it unravel and hence might be able to offer the genius bankers some kind words of comfort, if not of wisdom. Just a thought.

But what would I know as it is completely a liquidity issue and has nothing to do with solvency. Sure it doesn't, just keep repeating it over and over again Dorothy, there's no ponzi like a gov't sponsored ponzi, there's no ponzi like a gov't sponsored ponzi...



Thursday, August 4, 2011

CNBC, The Business World's Leader Alright....

For those unaware, today in the markets, this is what a global garage sale can look like. Sorta,kinda like a global version of Hardcore Pawn on TRU TV.

I have been tweeting today as things have progressed. For those unaware I am now on Twitter and you can click on the icon at the upper right of the blog to catch my feed.

As I said earlier if this is how CNBC reacts with the Dow -400 pts, imagine what happens during the 1 hour halt after the Dow drops 1200 pts. I really don't know who is worse, the anchors or the guests.

I love this broker/ crumb chaser fee based as opposed to commissioned, like that means your VIP instead of steerage, guest on CNBC utter "time horizon", "garden variety pullback/recession".... too funny. Rip your face off rally. The never seem to mention the rip your face off decline. They're garden variety all right.... garden variety vegetable.

TARP rescue, QE 3/4/5, stimulus, buy the dip, mkt is off its lows...... where the heck is Neel Cash 'n' Carry when you need him?

What would you buy? Wow? Like Pavlov's dog. Buy, buy, buy.

Experts huh..... I repeat yet again, the business world's leader alright.... leader in boobs and boobs in chairs. Govern yourself accordingly.

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, August 3, 2011

So Where Do We Go From Here?

My wife was posed this question the other day, by a friend and client who knows what I do, regarding this debt ceiling fiasco. I liked it so much it has become the title of this post.

So yes where do we go from here now that we have avoided Armageddon by raising the credit card limit?

Well, first, does it bother anyone that we have paid for nothing. Now you can listen to the brain trust of the Administration, or the Ivy league educated PhD's in ponzification who have infested Wall St. and frankly much of corporate America about how things are fantastic but does it really count for anything when you ask a ponzi master to outline or recount the ponzi?

It is extraordinarily difficult to acknowledge something as simple as the fact that when you are living on your credit card to survive you are finished, most expecially given the belief in American exceptionalism. Mathematics doesn't give a hoot about exceptionalism. Compound interest doesn't give a hoot about exceptionalism. And sadly, 2+2 does not equal 6 no matter how many Canali wearing, daddy set me up frat boyz tell me it does.

The fact is that easy credit, free money, that nobody ever cared would get paid back has fundamentally altered the structure of the economy. Did you come home one day to a house that had brand new
  • big screen TV
  • washer and dryer
  • blueray dvd
  • apple computer
  • dishwasher
  • pool
  • finished basement

Of course not. People accumulated those types of things over time. They saved up and then they bought. Not anymore. Princeton MBA finance means you can fog a mirror you can have a loan. Sadly the piper is here to be paid and the vast majority's pockets are empty. Think about it for a moment. How would you expect it to work out given we borrowed to sustaind the facade of prosperity? You really want to ask a Wall St. strategist how it plays out? Might as well ask your 4 yr old.

People want answers as to how to fix it. People want it back the way it was.
Are you kidding me?
How about I ask how do you fix a heroin addict? An alcoholic?

Giving them more product like the connected Ivy league genius's at the Fed recommend in perpetuity? Again, common sense applies here, even if the PhD's tell you it doesn't.
How about cutting them off the product? I realize cutting them off is politically incorrect, is juvenile, is sophomoric but sadly it is spot on.

The unfortunate remedy here is austerity. I realize austerity is the bogeyman, the Michael Myers of Wall St.and high finance. He interferes with bonus's (the brokers not the customers), with mid life crisis yellow Ferrari sales, with 2nd homes in the Hamptons, and with the trophy wife market which is why it is so vehemently opposed by the ponzi preserver, crumb chasers of Wall St.

Did I mention jobs yet?

I was in Kansas City this weekend visiting some family. I had the opportunity to visit my first Coldstone Creamery. Fantastic place but this is the type of jobs we are creating. I love Chick-Fil-A, was almost the 100th customer of the day for lunch when there!! But, again, this is the type of jobs we are creating.

Let me ask a question regarding jobs? Who has more economic utility. A David Kelly chief strategist at JP Morgan type, overseeing 400 odd billion in assets, or a dog groomer at Best Friends Pet Care?

Speaking of wonderful jobs look at the Dunkin Donuts IPO. It is a perfect analogy for this stock market. This is the only type of IPO we can muster given the Bernie Madoff economy we have created. Is there an IPO anymore, which would pop, by an outfit that makes anything anymore, Oh yeah I remember one. A 123 Systems, just make sure you don't look at the stock price though.

The analogy with the stock market here is the hole in the middle of the donut. Don't believe me? Watch closely how the bids disappear in this market the nano second someone wants to sell in size. For those that are sober enough to even care, I suggest you revisit the NYSE circuit breaker rules. Further to this some of you may have missed the Glass Theatre Analogy piece I ran a few months back written by a random reader of Rick Ackerman's blog put forward regarding the subject of selling and to whom.


“The biggest problem, getting back to Galbraith, is that in the process of facilitating sellers, all the new technology does not produce any buyers. I know most will disagree with that, but keep in mind that demand is a state of mind. It runs away at the first sign of trouble. Put another way, the same emotions that motivate sellers cause potential buyers to hold off. Sell is preordained, but buying requires a complex greed analysis. Which leads me to my “glass theater analogy.” We are all familiar with the most common analogy for panic: when someone yells “Fire!” in a crowded theater. The problem, of course, is that there are 50 rows of seats, but just two aisles leading back to two doors on the back wall. Grown men and women may trample small children to escape getting fried.

There are a couple of problems extending that analogy to the stock market, so I made some changes in my “glass theater analogy”. The biggest problem in the market is that, even if you choose the aisle seat, last row, you can’t escape unless you can find someone to take your seat. As Galbraith pointed out so many years ago, you can’t be a seller unless someone else will buy. (What a dirty little secret!). Another big problem, considering the speed of the technology today, is the basic transparency. It’s as though the back wall of the theater were made of glass, and all the potential patrons can see what’s happening inside. It’s right there on their screen! Who is going to take your seat when they can see the carnage going on in there? Which leads me back to last week’s mysterious plunge. First of all, remember that reading Alan Abelson the Saturday before the 1987 Crash, he indicated we had already had it with the 230-point drop the week before. The newspapers last weekend sounded a bit like a post mortem too. “The SEC is trying to get to the bottom of it.” I can save them the trouble. What do you expect when your weapon has a seven cartridge magazine in the butt compared to a single load, wad and ball. You get 1000 points in 15 minutes. Wait until the human nature kicks in again someday, in a big way. It might become 5000 points. You could retrace this bear market rally in a hurry."

But of course this was written on the internet by a nameless someone so how in the world could it have credibility, right? Idiots on the internet who can simply write anything they want without verification right CNBC boobs. Right, balloon boy followers of the mainstream media?

So from here everything is great if you ignore Italy, ignore jobs, ignore debt, ignore compound interest, ignore math, ignore market volume, ignore the breakdown in GM, ignore extend and pretend by the banks. Everything is great if you can morph into a Wall St. strategist who is driven by commissions and bonus's.

So from here:
I like the dollar,
I like highest quality U.S. federal bonds,
I like cash.

From here:
I do not like equities,
I do not like corp bonds, nor muni or state bonds.
I do not like gold here, nor silver, nor crude.

Rightly or wrongly I still see deflation, which most who are schooled in navigating have passed on.

Your common sense is much more valuable than the insight of boobs and boobs in chairs from the mainstream media, and in particular my favourite the propaganda network CNBC. Is there anything, I truly mean anything that Jim Cramer is not an expert on. Funny how Cramer loves gold now. How ironic that when gold was trading $350, 400, $450, 500, (shall I go on?) Mr. Cramer had no interest whatsoever. How could he? He was far too busy shoving his 4 tech horsemen down his viewers throat.

Quick side story. An old friend who followed the markets close and I are out for drinks in late 98, early 99 (circa tech bubble height) and while ordering I overhear my buddy conversing with a cat with us who was a broker at a rival firm ask "what did the XAU do today?" The broker's response was .... are you ready...... "what's the XAU?" Sadly this cat, whom I like, was more in tune market wise than the vast majority of other brokers so it can give you and idea of gene pool I am ridiculing.

Let me guess, over the past 12 months your broker has been calling and now just loves precious metals. Ask him why not Dell and Cisco anymore. Why not Nortel and Broadcom. What about Peapod.com LOL. Just for fun ask him/her the difference between common stock and livestock. FYI, your advisor, as I believe they fancy calling themselves now is no different than the furniture salesman at Art Van or the cat peddling Sea Rays at the local Marina. They're salespeople, selling what overseeing of 400 billion David Kelly and his ilk told them to sell, that's it. Just remember that the next time he tells you he's an investment consultant/advisor/ professsional.