I received the following email “advertisement” this past week after Bernanke spoke:
“Fed Chairman Ben Bernanke Drops the HAMMER!
*** "This is the worst labor market since the Great Depression." ***
*** "The market remains weak, with the overhang of vacant or foreclosed houses ... ***
*** "...uncertainty about the outlook for growth and unemployment as greater than normal....." ***
My Friends, This Market is Fragile and can CRASH ANY DAY
NOW.
This is a DIRECT WARNING from the FED CHAIRMAN.
It can not be more clear! I warned about this LAST WEEK!
I'll Tell you "What To Do
Right Now to PROFIT BIG. Options that can skyrocket 300% 400% even 700%
800% or more.
This time around Cash In on the Turbulence, Cash in on the Crash with a small cash outlay.”
As I read the above jibber jabber I thought this might be what the Pee Party reads and believes and I simply am awestruck that a company would attempt to advertise so deceitfully, ready to let people lose thousands of dollars “dreaming of the 800% return.
Instead, Iʼm jumping up and down on our play with Mosaic Calls that are up 49% from purchase in a 5 day period. MOS SEP 18 2010 45.00 CALL we just recommended, and itʼs up 33% as of Friday, and hit 49% highs the day prior. We consider returns like this EXTRAORDINARY, meaning truly out of the ordinary, and not to normally be expected in most trading.
Reality. There Is no such thing as a free lunch. As Malcolm Gladwell teaches us one becomes an expert at something with 100,000 hours of work at it.
We did this a few months ago with our TLT call that hit 60% returns, albeit a long call that we had bought, and most traders sold out. Some may still hold, and the option is in the red. There come the nerves of steel, as there are another 6 months in this option.
And we hope to do it now while we think the market will rise short term, and we will begin liquidating some more of our holdings, locking profits, as the longer term view of the market is that it will end.
The debt the world has built up over the last 30 to 40 years is essentially “being liquidated”; the house of cards coming down.
Keynesian economists will steer us that the ongoing debt will essentially recycle and by itself creates no danger, as long as growth continues.
Others see it as the debt of the world eventually collapsing, not overnight, but over a tell telling time of high unemployment, homes being rented more than bought, and people working into their late 70ʼs. All of that time the dollar will be collapsing, but actually the dollar will be increasing.
The value of companies, the way we trade to create market share, this many think will end in just a few short years, and that there will be no stock market as we know it, no trading as we have it, and values having been changed. A perfect example of a “rock is not hard”.
As we trade options, we trade for fast profits. As we have traded stocks weʼve often bought on dips, but will not be doing so now, but instead selling for profits at various market tops, ALWAYS leaving money on the table for someone else to make. Rockefeller made his money by selling just before the top, and my Dad taught me well to always have a regret that I could have gotten more, because with the gains I got I could watch as the market or stock went “just a bit higher”, leading to GREED.
It confuses all of us. For example, Floyd here got us out of the Gold and Silver market when gold hit 1170-1180 ranges, and we missed the trade range increases to 1280. But as Gold has fallen we bought back in, and Iʼm not sure I should have recommended Gold. From a contrarian perspective I see tops no higher than 1270, and soon leading to lower lows For the short term. Gold may NOT be the frenzy.
Silver, however, should be, and to most is not even noticed. We own SLV and CEF which holds silver billion.
Here are recommendations to our portfolio:
Decrease or do not buy more of GLD.
Increase your position in SLV, the counter index for Silver to Gold. In Blue Chips we own Silver, in three ways: a.through Canadian Exchange Fund, (CEF), that holds both gold and silver bullion b. through SLV or SSRI, both excellent Elfʼs c. through shares of the Pan American Silver Fund (PAAS)
This play is a stock, and making trading news:
“Shares of Pan American Silver Corp. edged up $0.33 (+1.44%) to $23.25. The stock closed at $22.92 in the previous trading session and opened today at $23.18. The price of the stock ranged between a low of $23.04 and $23.67 respectively. The trading volume of 702,941 is below the 90 day average volume of 1,193,300 shares. PAAS is trading below the 50 day moving average. The stock's 52 week low is $18.11 and 52 week high is $28.41.”
Letʼs watch PAAS. As it shows upward trend near $25.00 this is an excellent buy as a stock or a long term call option.
Now to clear your mind of the sadness of our world, the news bites of false facts, here are some REAL ones to help us understand our transition as a human race.
*BP contributed 77,051 to Barack Obama through 2004-2009.
*The average American paid 17% of their personal income in taxes last year, the lowest since 1971.
*There were 116,782 immigrants deported during Emperor Bush’s first year in office; Obama the communist has only deported 387,790 immigrants.
*Five finance firms hold 97% of the cash derivatives on the market.
*49 states have laws making certain physical appearances legal to have companies not hire the individual. It is said that Pee Party members are scrambling to find this in the Constitution.
*17% of all Catholics believe in the “evil eye”
*There are 23 nuclear reactors being built in China
*IN 2009 52% of U.S. personal income came from wages, and 17% came from horrifying socialistic government programs. Since 1929 these figures have never been so low and high. So, I’m asking all Pee Party folks holding their Constitution in hand, pray to their God (Christian only, I think, allowed in Pee Party, as in constitution, and voluntarily offer to give up their federal programs to “do the right thing”. Simply denounce your public library, public schools, social security, Medicare, and all else that we have wrought.
Be Well and Do Good
Trade for the right reasons
Floyd
