The stock market: Cause and effect = supply and demand.
• Not all that has happened in the markets is at it appears, or better, may not be real.
• Our overextended upswing built on three reasons:
1. Enthusiasm about creating 500 billion of more debt, even though Americans are appalled at the debt he has created, or assumed from the GOP last time.
2. Good earnings from the conglomerates who have fired so many people and outsourced even their companies (Halliburton main office now in Dubai)
3. Need for good. The world cannot accept the fact that it has phucked itself in a pile of fake money, first created by the U.S.A.
• We are at a short-term cycle high and our new Dow projections limit downside to two key areas, both telling if the market will hold.
Charles Nenner Research projects flags and concerns to an upward swing, and not just market highs, if:
• The Dow does not close below 11,100.
• The S&P does not make a close below 1178, or the NASDAQ below 220
Nenner sees closes below these levels as a time to take profits, but NOT a time to go short, just to sell profits.
All of our moves on Gold, Silver and Precious Metals have hit:
-We sold GLF for profits at 1110 thru 1140 and rebought at 12.10. We’ll hold until we see hesitancy around 1344, and would lock any Jan or December Gold calls, or hold on the position.
Silver could easily hit $30.00 before a slight correction.
The new best investment ETF we’ve seen, and recommended, is Glitter or (GLTR) that invests in Gold, Silver, Platinum and Palladium proportionately.
We would sell out Pan American Silver (PAAS) and SLV on dips, and reinvest in GLTR or Canadian Exchange Fund (CEF), both still undervalued.
We are long term bullish on all the precious metals, and long term BEARS on the EURO and USD.
Famed commodities trader Jim Rogers said: “I don’t know if Bernanke really understands economics”.
The GOP will work to take credit for:
-The highest market we’ve seen since the Lehman crisis.
-Improved GDP
-TARP and all bail outs a success from the creation of a massive depression
-The freezing of all bipartisan adult behavior over the past two years to create only a “one term President”.
-Sarah Palin could actually be President in 2012, you betha! And no one will blink an eye.
For the short term crude may have hit its’ high. We know we’re up substantially in Exxon Mobil, Chevron and Conoco Phillips.
Some traders in Advanced Mentoring also played XOM as a January call, and returned 26% over night.
We are still long on XOM of all the oil companies for their dividend, breadth of type of energy discovery.
If you are holders in 30-year long- term treasuries, such as TLT, we think the top has been reached and we would sell. We are profitable with our Treasury Inflation Bonds TIPS, and hold Zweig Total Return (ZTR) for 50% treasury exposure. That’s enough of the fake money for now.
Friend, subscriber, and fellow trader Alan Austin was talking with me a week ago and we discussed many of the stocks and options that have been recommended this past week.
All are volatile and exciting plays, and we’re already in movement. With each we recommend due diligence review and analysis to be done by each of you, to understand the type of holdings we are now playing
• Emerging Markets:
PXR up 14%
FXI up 112%
• Stock Takeovers or Stocks Overextended
DLIA-ripe for a takeover, long on this stock
LULU-ripe for a crash, we are short on this in options and down 56%. We may move our option out a few months if upside continues
• Rare Earth Elements- a huge and volatile surgery
-REE as January 10 Call-down 7.77% accumulate
-SHZ-our most volatile play, up and down sometimes 50% in a day. We are aggressive in our holdings, and are up 7.26%
-NENE-Truly technology more than anything else, new CEO, and ripe: up 6.14
We are also long WMT as a stock and as an option, and long RIMM with a March call.
If either falters, buy additional inventory.
Lastly our foray into legal drugs in SNY is up 2.46%.
That marijuana tax bills would not pass in California is indicative of just how powerful the drug cartels are in influencing the lobbyists to control a bill that would have brought billions to California…. and trust me, old Nancy Reagan and her bullshit line “just say no to drugs” hasn’t worked one iota.
So a great lesson in false facts:
1. One would assume that Proposition 19 was defeated because the State of California (the people) did not believe that legalizing marijuana would be good for its people.
2. One would assume there were “things wrong with the bill”
3. One would assume this is what the voters WANTED.
The fact: The vote was swung by the drug cartels of Mexico and Latin America that dug deep to make sure no lobbyist, no key congressman would support this….as it would hurt their trade. It has nothing to do with what the people wanted. My God, more than half of the people in California smoke marijuana ☺
This is much like why did the GOP win? Because of disgust with Obama and what he has done? Because of fear of deficit?
And the winner is: FEAR OF LOSING POWER.
And how did they win: INSTILLING False Facts and FEAR
Supply and Demand=cause and effect
Cause and effect = supply and demand.
Remember: The stock market is a game of Zen chess. There are no real facts and you are playing in the sandlot against others, and some are bullies.
Be Well, Do Good, Show Compassion
Thursday, November 11, 2010
Thursday, October 28, 2010
What Every CEO Wants
• “While American democracy is imperfect, few outside the majority of this Court would have thought is flaws included a dearth of corporate money in politics.” Supreme Court Judge John Paul Stevens
• This is what every CEO wants for his company:
-to get as many favors, subsidies, and tax breaks out of Washington as possible, while at the same time stripping the government of the power to place any checks and balances on corporate behavior. It is corporate America, led by the rich that oppose all government, while making use of the infrastructures that we take for granted about government.
Let’s start the week with our newest recommendation
GLTR
ETFS PHYSICAL PRECIOUS METAL BASKET
This is a new ETF that went public Friday and closed at $75.70. It’s an interesting ETF basket that may replace many of the ways we’ve successfully traded Gold (GLD), Silver (SLV) and combinations, such as the Canadian Exchange Fund (CEF)
We noted last week that if silver closed below 23.00 it was a short term sell signal, and a move from long positions. We sold from 40% to 65% profits all of our SLV position.
We noted also that if Gold went below 1340 on a close that it was time to sell, and close our long position, for the short term. We did so and average profits on our 8th GLD trade this year averaged 37 to 44%.
We recommended keeping CEF, our Canada fund investing in gold and silver, and keeping this as the sole precious commodity trade open.
The above ETF is more unusual and we recommend buying regularly, on ups and downs, and holding for at least one year, in a core market position. GLTR, or Glitter for short, is a perfect averaging of all four precious metals, now exposing our traders to the upside we see coming in platinum and palladium, in addition to Gold and Silver
What the fund is:
“ETF Securities launched the ETFS Precious Metals Basket Shares (GLTR) today (10/22/2010), making it the first US-listed physically backed precious metal basket ETF to hold gold, silver, platinum, and palladium.
GLTR's objective is to provide one-stop shopping for investors seeking to hold all four metals with specific fixed weightings. The fund's prospectus contains no provision to alter or rebalance the holdings. Therefore, the number of ounces of each metal will remain fixed and the percentage allocations will be determined by future price swings of each holding.
On a per share basis, the fixed amount of bullion and current percentage allocations are 0.03 ounces of gold 52.8%, 1.1 ounces of silver 34.0%, 0.004 ounces of platinum 8.7%, and 0.006 ounces of palladium 4.5%. The firm provided no explanation regarding how the initial relative weightings were determined.
The fund has an expense ratio of 0.60% and additional information can be found in the press release, overview page, GLTR fact sheet , and the prospectus.
Investors comfortable with the bullion allocations of GLTR (“Glitter”) will likely find this fund a convenient way to gain exposure to all four metals”.
This last two weeks many of our open positions have begun showing steady and increasing profits:
XOM- Now firmly in the black and moving up. 25% returns plus dividends for longer-term traders, and 8% returns for those that entered this bullish energy stock months ago. We are also up with COP and CVX. All are still a hold.
We see oil topping near 84.00 and possibly correcting, but a larger upswing by end of year.
Of most importance we have picked these three stocks as stocks, not options, for their safety, and the strength of their dividends. They pay far more than a U.S. Treasury and are imminently safer.
Corporations like this run the world, not governments.
All of our long- term core stocks, such as Apple, FXI (new), PXR (new) and our Proctor and Gamble and Goldman Sachs 2013 LEAP calls are up substantially.
We will be watchful on FXI and have set a new stop loss at $44.00 for short-term traders. For longer term traders buy FXI and PXR on any drops, as we are long on the positions, just watchful of a downturn over the short term.
_______________________________________________________________________________________
Note: All of our Blue Chip holdings are updated nightly on www.stockcharts.com, including detailed recommendation summary. Study carefully.
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=1394380,1&cmd=show,IDAY[Y]&disp=e
Floyd's Shifty Fifty-Public Stocks
On an overall stock market level it is not time to add to or buy new positions. We want the market to settle, correct or set new upsides, and to see the reaction to the G-20 group masturbation summit.
This week the primaries take place and America will learn just how gullible they are within their voting, not even knowing that most of the Pee Party and GOP ads are funded by overseas shell corporations represented by the NEOCONS, and set to do nothing to really change any government moves EXCEPT take back anything that has been done that has adversely affected large corporations and the highly wealthy.
We have watched news bytes and lies brilliantly developed by Karl Rove (Roveian politics) and others intent on freezing the system.
Americans, wanting change, but not even knowing what change could work, and wanting it NOW (nothing can take time in America; we are an “instant mentality”, will likely not even notice that all the bills put through in the last two years under Obama, except a few, have been stalemated and stopped in Congress by the GOP, affecting a President to actually be impotent.
So let this settle and we’ll watch for sales and new entries.
Remember, when a stock hits good profits for you follow the Floydian 1/3’s rule: Sell 1/3 at Profit A, Sell 1/3 at a higher profit point B, and let the final 1/3 “run”, as profits have already been made.
As I was trained in the Wyckoff Method I believe the stock market is fully “run” by supply and demand, set in place by cause and effect.
Supply and demand is much simpler than we make it:
1. When there are an equal number of buyers vs. sellers price is equal, and not moving up and down.
2. When there are more buyers, prices will increase
3. When there are more sellers prices will decrease
4. It is possible for prices to move higher with the same number of buyers. There just need to be fewer sellers.
5. When prices decline it is not because there are more sellers; there are just fewer buyers.
Question Authority. Question All Facts. Ignore the Obvious, as it is not obvious. Know that a rock is not hard.
Understand that you only know what you know.
This is the Zen of trading.
Be Well
Floyd
• This is what every CEO wants for his company:
-to get as many favors, subsidies, and tax breaks out of Washington as possible, while at the same time stripping the government of the power to place any checks and balances on corporate behavior. It is corporate America, led by the rich that oppose all government, while making use of the infrastructures that we take for granted about government.
Let’s start the week with our newest recommendation
GLTR
ETFS PHYSICAL PRECIOUS METAL BASKET
This is a new ETF that went public Friday and closed at $75.70. It’s an interesting ETF basket that may replace many of the ways we’ve successfully traded Gold (GLD), Silver (SLV) and combinations, such as the Canadian Exchange Fund (CEF)
We noted last week that if silver closed below 23.00 it was a short term sell signal, and a move from long positions. We sold from 40% to 65% profits all of our SLV position.
We noted also that if Gold went below 1340 on a close that it was time to sell, and close our long position, for the short term. We did so and average profits on our 8th GLD trade this year averaged 37 to 44%.
We recommended keeping CEF, our Canada fund investing in gold and silver, and keeping this as the sole precious commodity trade open.
The above ETF is more unusual and we recommend buying regularly, on ups and downs, and holding for at least one year, in a core market position. GLTR, or Glitter for short, is a perfect averaging of all four precious metals, now exposing our traders to the upside we see coming in platinum and palladium, in addition to Gold and Silver
What the fund is:
“ETF Securities launched the ETFS Precious Metals Basket Shares (GLTR) today (10/22/2010), making it the first US-listed physically backed precious metal basket ETF to hold gold, silver, platinum, and palladium.
GLTR's objective is to provide one-stop shopping for investors seeking to hold all four metals with specific fixed weightings. The fund's prospectus contains no provision to alter or rebalance the holdings. Therefore, the number of ounces of each metal will remain fixed and the percentage allocations will be determined by future price swings of each holding.
On a per share basis, the fixed amount of bullion and current percentage allocations are 0.03 ounces of gold 52.8%, 1.1 ounces of silver 34.0%, 0.004 ounces of platinum 8.7%, and 0.006 ounces of palladium 4.5%. The firm provided no explanation regarding how the initial relative weightings were determined.
The fund has an expense ratio of 0.60% and additional information can be found in the press release, overview page, GLTR fact sheet , and the prospectus.
Investors comfortable with the bullion allocations of GLTR (“Glitter”) will likely find this fund a convenient way to gain exposure to all four metals”.
This last two weeks many of our open positions have begun showing steady and increasing profits:
XOM- Now firmly in the black and moving up. 25% returns plus dividends for longer-term traders, and 8% returns for those that entered this bullish energy stock months ago. We are also up with COP and CVX. All are still a hold.
We see oil topping near 84.00 and possibly correcting, but a larger upswing by end of year.
Of most importance we have picked these three stocks as stocks, not options, for their safety, and the strength of their dividends. They pay far more than a U.S. Treasury and are imminently safer.
Corporations like this run the world, not governments.
All of our long- term core stocks, such as Apple, FXI (new), PXR (new) and our Proctor and Gamble and Goldman Sachs 2013 LEAP calls are up substantially.
We will be watchful on FXI and have set a new stop loss at $44.00 for short-term traders. For longer term traders buy FXI and PXR on any drops, as we are long on the positions, just watchful of a downturn over the short term.
_______________________________________________________________________________________
Note: All of our Blue Chip holdings are updated nightly on www.stockcharts.com, including detailed recommendation summary. Study carefully.
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=1394380,1&cmd=show,IDAY[Y]&disp=e
Floyd's Shifty Fifty-Public Stocks
On an overall stock market level it is not time to add to or buy new positions. We want the market to settle, correct or set new upsides, and to see the reaction to the G-20 group masturbation summit.
This week the primaries take place and America will learn just how gullible they are within their voting, not even knowing that most of the Pee Party and GOP ads are funded by overseas shell corporations represented by the NEOCONS, and set to do nothing to really change any government moves EXCEPT take back anything that has been done that has adversely affected large corporations and the highly wealthy.
We have watched news bytes and lies brilliantly developed by Karl Rove (Roveian politics) and others intent on freezing the system.
Americans, wanting change, but not even knowing what change could work, and wanting it NOW (nothing can take time in America; we are an “instant mentality”, will likely not even notice that all the bills put through in the last two years under Obama, except a few, have been stalemated and stopped in Congress by the GOP, affecting a President to actually be impotent.
So let this settle and we’ll watch for sales and new entries.
Remember, when a stock hits good profits for you follow the Floydian 1/3’s rule: Sell 1/3 at Profit A, Sell 1/3 at a higher profit point B, and let the final 1/3 “run”, as profits have already been made.
As I was trained in the Wyckoff Method I believe the stock market is fully “run” by supply and demand, set in place by cause and effect.
Supply and demand is much simpler than we make it:
1. When there are an equal number of buyers vs. sellers price is equal, and not moving up and down.
2. When there are more buyers, prices will increase
3. When there are more sellers prices will decrease
4. It is possible for prices to move higher with the same number of buyers. There just need to be fewer sellers.
5. When prices decline it is not because there are more sellers; there are just fewer buyers.
Question Authority. Question All Facts. Ignore the Obvious, as it is not obvious. Know that a rock is not hard.
Understand that you only know what you know.
This is the Zen of trading.
Be Well
Floyd
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