• “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.
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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
