Run to the store and buy Rolling Stone July 8th-22nd Issue to read for yourself the great uncovering of our General that was just fired for being an idiot.
Then, turn the page and read “BP’s Next Disaster” by Tim Dickinson
http://www.rollingstone.com:80/politics/news/17390/120130
Here we get to read more about BP’s move into the Arctic, politics controlled by lobbyists and more of the rape of our people and earth.
It’s rather intimidating that Rolling Stone Magazine as uncovered, just this year:
-Matt Taibi’s expose on Goldman Sachs that later lead to the fraud investigation.
-Tim Dickinson’s expose on how the former Bush Administration used the Whitehouse
-Tim Dickinson’s above expose on Arctic Oil, sure to stun you
-Michael Hastings expose of “The Runaway General” that got him fired.
http://www.rollingstone.com:80/politics/news/17390/119236
Sad that true facts seem available only in “liberal” newspapers that truly hire freelance journalists.
Advanced Mentoring client MR always reads my "Floydian Rants" and does his research. On my last rant to the Tea Party's, created by Karl Rove, I noted that these idiots handed out The Constitution before each meeting, as if it were the Word of God. I pointed out one of the dudes that wrote this might have had good theory, but...
“I read up on Jefferson (based on a Floydian Tea Party Rant) and found out things like: Jefferson was again slavery in theory, but was so in debt that he could not afford to free the ones that worked for him - and never was able to escape that within his life time. Interesting that the virtue of life long indebtedness was already instilled by the 1700's. Seems like we need to keep searching our history books to find how "it ought to be." Maybe in truth it never really was "how it should be" which wouldn't be all that surprising, after all - we're human - and awfully dishonest, unfair, and brutal to each other historically.
...I see there is more. Reportedly fathered some children to one of his slaves. Allegedly questioned the existence of God. He diverged greatly from the orthodox Christian views of the day. Seems like he was rather liberal in some of his thinking. Died broke, the only reason he wasn't evicted from Monticello was because of his stature as a politician. He was in France during the drafting of the constitution, fine dining and having his slave trained as a French chef.”
Ahh, the Constitution. Right up there with The Bible. The Koran. Misinterpreted, and believed to be “law”
It is this kind of thinking, and you’ll read more below, that makes our country paralyzed without action, and the same type of thinking that has made our stock market a poker’s game at high speed.
On the "government's recommendation that BP pay $20 billion in damages, from Investors.com:
"Where is the Constitution does it say that a President has the authority to extract vast sums of money from a private enterprise and distribute it as he sees fit? Nowhere. It says that private property is not to be confiscated by the government without "due process of law". If you believe that the end justifies the means, then you don't believe in constitutional government, and without constitutional government, freedom cannot endure".
This is a perfect example for traders to learn from, to understand how false facts and "mis-information" clouds judgment. Sorry to Investors.com, and whatever Tea Party guru wrote this, but here's the Floydian rebuttal:
1. Nowhere in the Constitution does it say to invade a country without provocation, or does it "draft" only certain types of people.
2. The Constitution does not mention lobbyists and bribers, much as work during the writing of the Constitution (by a few guys that when you study them are truly not the "greatest of men", but what we have "historically made them out to be"
3. I believe the ends do justify the means under extreme conditions, and believe most everyone does, when they think clearly and not with some ingrained "bullcrap spiritual stuff" that we choose to interpret as we see fit, such as the "jihad" vs. "eye for an eye" vs. "thou shalt not kill". I also believe BP are phuckers, and we had to steal the money from them, as they stole the environment and livelihoods of millions for GREED, and would never have paid this back. Private enterprise does not work to well in a democracy, much as you may have been led to think otherwise.
4. There are many governments that are non-constitutional in which freedom endures.
5. Silly silly people. The Constitution is NOT the word of God, but words of men hundreds of years ago. A country in 2010 cannot be run by these rules, as there aren't even rules for many of the things we deal with. Where's North Korea, Afghanistan, or taxation of tanning salons and cigarettes, in the Constitution.
So to trade....what do you learn? Do not believe this fodder as it comes across the boards, the Palin to compare Obama to Hitler (Floyd hated George Bush II beyond comprehension for what he and gunman Cheney did, but even I would not compare their work to Hitler.
Do not listen to those that call names, and create their interpretation of scholarly works.
Do not fall for false information.
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Last week saw 1024 advances and 2419 declines. However there were equal new highs to new lows on the NYSE, and the Dow Jones s Industrials lost 2.94%, less than most of the major exchanges.
Oracle, (ORCL)which we own and are down 10% on, we have bought ongoing, and fourth fiscal quarter earnings at the business software giant surged 25% as revenue began to come in from its Sun Microsystems acquisition.
This stock will perform in the tech sector over time and we recommend as a buy.
We continue to also recommend Exxon (XOM), a value stock that has strength with their acquisition of XTO. Dividend. Long-term core holding, and a true chance at breakout to highs of $90.00.
We’re up 25% with Exxon from long term holding, with dividends always reinvested, and we’re buying more now. XOM is dirt-cheap.
And don’t worry, just as slimy and even more profitable than BP J
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Turmoil has marked events more this year than ever before.
Toyota was a crisis. Worldwide panic. News everywhere.
Toyota still has a good quarter, learns their lesson on quality control, and soon thereafter every major car company except Honda is hit with massive recalls also, but the “hit” is not there.
And from Toyota there was soon thereafter “the flash crash”, a 20 minute trading period in which companies that are well known actually hit zero, and more 25% trailing stop losses were executed by funds, individuals, and all of finance on the massive drop.
Okay, so some say it was a blip, and I’ve also read an intriguing study on how this 1000-point drop that shattered Wall Street could have occurred on a full Fibonacci retracement….and on and on.
I don’t really care.
What I care about is that it does not happen again, or that if this is the “new way”, let’s get ready, and buy gold bullion and run.
What concerns me is that no one talks about it and you can find little internet feed explaining the true precautions being set up, or if they are; it is as if the exchanges see it just as a “blip”, “easily corrected with a simple remedy: the adoption of cross-market trading halts for individual stocks so that that buyers can catch up with the sellers and vice versa.” (Jim McTague, Barrons).
It goes back to the story of the circuit breakers, what we had been told in the past was “failsafe” for moves like this. Proctor and Gamble gossip cost us billions? Something is wrong.
Even VIX feels different. Buying fear is a good trade, just as selling confidence is usually a good sale. Sear, in Striking Point, says “ People are buying puts because fear is high , Vix at a lofty 35…..and remember “the market’s mainstay strategy remains selling stocks to increase investment returns, or selling puts to lower the cost of buying stocks. 14 million contracts trade on an average day.
Much of that option volume is institutional: buying hedges, adjusting hedges, puts against positions taken. Options are an art, science, and card game.
The rules are changing in the card game.
Over the next week we will be updating our core and speculative portfolio performance on the website, and updating buy/sell/hold recommendations.
For new traders with us: we do not keep track of options. When Floyd recommends the rules of engagement are out there, with buy/sell, stop loss.
We have many types of traders: brokers, analysts, big investors, and small investors. You define how to take profits.
As examples, our recent long call on Apple (AAPL) has been profitable to 40%
Our long-term TLT call has come back, and our new recommendation to a Sept TLT call is 8% up. We’re down 10 to 30% with our long-term call trades on Amazon and Mosaic, and are following the rules of our original recommendations.
During the week when we make comments “long the market” or “Dow or SPX tops” we are providing long-term trend indicators.
As an example, and a sad one, we saw Gold topping at 1170 and sold our final thirds at 1170. We’ve missed another 70 points of profit, and we now hold an OTM put on Gold, continuing to see a Pause and breakdown in Gold and Silver, very short term, and we obsess about it daily.
We’re up with AU, our gold mine, and we continue to want 15% of our portfolio in Gold, Silver or Platinum in the next three months. We’re just waiting for the right entry.
And, just back from a trip overseas, I am proud of this vast nation, this country, and our will.
I only question our understanding of cause and effect, and our ability to be led by the charismatic and the thieves, believing in “right and wrong”.
There is no such thing as black and white. This may take a lifetime to learn.
Be Well and Do Good
Floyd the Trader
