Channeling Stocks

[SilverSurfer]

thanks for the useful reply.. ZTS got approval for a skin / itch drug and the way people rush to take pills for anything they have, I expect they will do the same for their dogs. Dividends these days are sometimes false indicators as far as short term stock trading, but have to be good for long term.. 8% divvy on AT... which could turn around if traditional energy costs trend back up at some point....

[JLS]

SS Re all three ...

DSS is on life support because they have debt of $2.43M and cash of only $1.2M, and operating cash flow of -$3.02M . There are no positive projected earnings for 2013 or 2014 -- just losses. Translation: they have to raise cash soon if they want to stay in business. New shares will dilute stock. Meanwhile, I haven't found any evidence that their upper management owns any company stock. Furthermore, the only free stock they gave themselves was less than 6k shares in mid-2011 to a company officer of unknown rank.

MITK has cash of $14.89M and no debt. Operating cash flow is -$1.84. Losses are projected for all quarters all the way to the end of 2014. They also missed earnings (loss) estimates by double-digit percentages for 3 out of the last 4 quarters (which means that either they give bad guidance because their business model is erratic, or maybe they simply have poor managers). Their products are interesting but I don't see anything about them that can't be easily replicated by other software companies. Their stock chart is erratic and would create a lot of false triggers in an automated system, which would result in churning as well as significant losses. Sure, there are times when they move up significantly over several days, but those are more than offset by the times when the stock literally falls out of the sky.

ZTS already made it into my Scan_1 list. Granted it is trading in a channel, but it's price moves are too noisy within that channel, therefore it would create a lot of false triggers in a mechanical system and those would result in churning which usually results in lost money. Trading horizontal channels is better when they are consolidation patterns with the possibility of an upward breakout. The problem with ZTS is that it's whole life has been spent in a horizontal channel, therefore it is not a consolidation pattern and there is no clue which way it will break out. It missed its first quarterly earnings by over 59%, while it beat it's last quarter earnings by 9.1%. It needs more time to show what it is made of and the character and abilities of its leaders.

ZTS is a recent biopharma spinoff with little history operating on its own. I think a better choice of a newly listed biopharma is Q (Quintiles). Q is even set to pay a forward annual dividend of 4.6%, whereas ZTS is set to pay a forward annual dividend of only 0.8%. I think that says a lot about the confidence of management.

[SilverSurfer]

JLS,,,,,, you said "MITK is much better off than DSS, but neither one interest me. DSS is on life support"

uh, MITK and DSS blew UP !! ZTS sucked but could have hit bottom of channel....

What say you now? tia

[SilverSurfer]

LPSN this is a long term watch. By numbers it should be a $14 stock but got pounded because they lost a big customer that hit revenue line. Solid company regardless.

GSAT is a company I will buy at .30 and sell at .56 all day long. Waiting for it to go back down.

EXTR Makes Money and looks to be right at resistance line.

BIRT Another good stock financially. Looks like possibly broke through resistance which may become new support.

AFFX

[SilverSurfer]

oh, I thought you were familiar with Foot here on IHUB, He just does his own commentary and charts now - I agree with you about the three days... a hobby to look longer.. btw, I live my life 15 min. at a time.... > http://stockcharts.com/public/3421479

[JLS]

SS,

I'll check out Footrader if you post a link. Otherwise I don’t know where to look. StockCharts Blog???

All I see so far is a bullish consolidation (meaning that it started from a bullish run up). In the intermediate time frame bullish consolidations usually resolve themselves in bullish upward moves (AKA trends continue until they don’t). The bottom of the range could be 1625 or slightly lower. The candle pattern there will tell of the future from there. The candlestick pattern in early May shows a small flat period of about 5 days that form support at 1625. That region is also shown by a group of horizontal lines in the lower (SR) chart. Friday’s Low stopped there. That’s a good place for price to probe and hit the bottom of the channel shown in the upper image.

That 2-day bottom pattern in mid April (which pierced the bottom of the channel) was a bullish engulfing pattern which predicted a bullish outcome, and that was confirmed on the following day, 04/22.

There is a larger support region which peaks in the range of 1580 to 1590. I think that looks more attractive to a market that may want to go sideways for many days or a few weeks, as the space between there and the recent intraday high of 05/22 would make a 100-point trading range. Historically (from Motley Fool and Trader's Almanac) markets often swoon in June, but it's worth holding on for the historical run up in July; but beware of September and October.

I’ll bet there are a lot of desperate shorts who know that 1555 SR is going to get hit soon, and they are hoping that will hold only temporarily and that price retraces upward a bit then reverses back down and punches through 1555 and heads much lower.

As for me, I think it is a waste of time to predict anything more than three days out. So I only did this for the sake of my own entertainment.

[SilverSurfer]

Great Success JLS... That close on Friday could have finally put a chill on this hot Market... What you said notwithstanding, no one wants a market to go straight up...

Hey, have you ever looked at Footraders's StockCharts page?

[JLS]

SS,

I posted that just in case you were interested in buying CRUS stock. I decided to use CRUS but use a very conservative approach.

When you first brought up CRUS, I think I mentioned something about MRVL. I don't usually put symbols in titles so I would have to search messages -- and I'm not going to do that.

Anyway, I outright bought MRVL shares a few days ago. Went up, went down, sold it yesterday for a 5-cent loss. It's Pythia Buy signal lasted only one day before going to Sell. I held it a couple extra days thinking it might bounce, so I gave up the little profit it had. I thought it would do better than that since it beat earnings as it usually does. It ran up ahead of earnings, so maybe that was the reason it fell back. Anyway -- first rule of trading is to not loose the money.

As I set up and entered the CRUS trade, I exited an older trade structured the same as the Put/Call structure I initially proposed for CRUS. That other trade was on LNG and the options were set to expire in Jan 2014. I set that up in February and intended to hold it for many months. LNG has been showing weakness lately so I cashed out early. The gain on that trade was 1077%. Not that unusual for that type of setup. I still have the same type of setup for both MM (set up in April) and BAC (set up 2 weeks ago), except both of their expiration dates are in November. As of today the BAC position is up 72%. The MM trade is currently up 89%. I'm nowhere near selling those because I think they go up much higher from here.

The nice thing about these options trades is that if one only trades options and does not buy the underlying stock, and one doesn't put in a whole lot of money, then a lot of money can still be earned overall but there is no compulsion to have to watch it everyday because the amount of money at risk is low. And that works great for me because I have a lot of other things I have (or want) to do this time of year.

The CRUS trade, as I structured it, is called a Buy/Write and that does take a lot more money so the gain on the total money involved in the trade wont be very high, but the Covered Call part of it acts like insurance so it gives a sense of safety and I don't feel that I have to watch it all the time -- such as today. I'm on the computer but I'm shopping and spending money instead of watching stocks.

I don't know about that "dog" in your pic. Looks sort of like a fox, so technically if that's right it's not a dog (so they say). It doesn't quite look like a coyote either, at least not like the ones I have around here. I'm guessing it's probably a breed of dog I'm not familiar with, and is probably your pet, and it's yawning just after you woke it up (because his eyes are shut and his mouth is too wide open to make it a threat). I have a couple German Shepherd Dogs, and they are itching for me to get outside. If I don't do that soon, their pent up energy will get them into trouble. One of my daily chores is to wear them down to a more civilized state. I prefer not over-training dogs. That way they are more likely to scare the bejesus out of any uninvited guests without posing a real threat -- especially the female because she's mostly black, and large black dogs tend to scare people a lot more than dogs of another color. My other dog is male B&T and is way cool because he always howls (and never ever barks) at coyotes. He wont even howl at a coon dog. And he wont howl at a person who howls at him. He did that once for me when he was a puppy but never again.

I'm outa here ............

[SilverSurfer]

good call Pythia

[JLS]

SS, Re CRUS ...

Pythia had a Buy signal for CRUS yesterday. Stock is up today (like you didn't already know).

I don't really like CRUS very much (customer list), but since it's up today, this level of support is reinforced but could become creaky as July approaches (an often weak season for technology stocks). I don't want an options trade on this thing that stretches out months and months, so I decided to become a slum lord and rent out the stock for a while.

To rent it out I have to actually own it. So I bought a bag of CRUS this morning and am holding it at arms length. I paid 18.12 -- reminds me of a war. Then I immediately sold Jun 22 $17 Calls for $1.60. On June expiration the stock may very well be taken from me (assigned) at $17, in which case my profit (rent received) will be $480 minus expenses. Theoretically I could do this every month for an annual return of over 32% minus expenses. If for some reason CRUS sells off to $17 or less by June 22 (not likely) then I'll rent it out for another month. Even if the stock is assigned in June, I can still choose to buy it back and rent it out again, and again, and again. Yawn.

Hey, it's a living.

[JLS]

SS,

Unless I viewed the chart wrong, the only self explanatory thing I saw was a time interval where the price pattern of one symbol matched the price pattern of the other symbol pretty well in a different time interval having pretty big gap in time.

The explanation I was interested in is the reasoning behind any interest in that. I just saw it as a rare peculiarity.

No need to respond. I got the link and can check the history.

[JLS]

SS,

I got distracted. A big thump on my living room picture window got my attention -- bird, obviously -- and I had to go check it out.

Checking that image of the SLV chart again, there's a title below in small text and containing the word "spooked" and a tiny red link. I'll check that out later. That word "spooked" is interesting too. I have no conscious memory of seeing it, yet I used that word in my first message to you wherein I asked for a link to that image. Subliminal.

The bird is a female golden flicker and it's dead as a doornail now. The only visible damage is that one eyeball is flat and not shiny. Would attach an image but found nothing yet that does it justice -- there are very brilliant orange feathers beneath the wings and tail, and don't show much except when the wings are opened. It's much larger than one would imagine from photos. It was very warm as I cradled it in the palm of both hands. There are a lot of them here.

So stocks blow up and they blow down. Do you know of any that blow sideways? ZTS is already on my Scan_1 list. I guess I should check the news that caused it to pop up a few days ago. It pops both directions frequently. MITK is much better off than DSS, but neither one interest me. DSS is on life support.

[SilverSurfer]

the chart is self explanatory and there are others of like and kind on yesterday's post but you can scroll down and see his archives. Sometimes he elaborates at length.

[JLS]

SS,

Thanks for the link and I'll bookmark it, but as I scan that page I don't see any remarks specific to that chart. Comments relative to the chart are what I was looking for. Perhaps I scan too quickly? Perhaps the chart is on that page as a wallflower, put there to only attract attention?

I thought that perhaps some other site was commenting on that chart, so I ignored the source name on that image.

[SilverSurfer]

MM blew up ! on no news

TA say?

MITK had big news and may have more up to go after it works off the big run.....

[SilverSurfer]

MM, MITK, DSS, ZTS -- MITK just blew up ....

[SilverSurfer]

Market Anthropology - this guy's pretty good. I have been following him for several years and his comparison charts are spooky predictive... http://www.marketanthropology.com/

example :: http://www.marketanthropology.com/2011/03/next-big-trade.html

[JLS]

SS, re SLV/SPX ...

I hope you realize that the SLV/SPX chart will cause some people to come to some spooky conclusions. Have you come to some spooky conclusions?

Where did you get that thing? I would like to see if the posters have come to spooky conclusions. Can you post a link?

I couldn't come to any meaningful conclusions of any kind because I'm not interested in silver or gold. Those are highly emotionalized trades and not based on any fundamentals. Silver actually has a lot of commercial applications so it could trade on fundamentals (but it doesn't), whereas gold does not have significant commercial applications outside of jewelry. Yet the silver chart is highly correlated to the gold chart, and that is for emotional reasons.

I will depend on a great deal on technical analysis for investment and trading decisions, but I want solid fundamentals for a backdrop, not emotionality for the backdrop. Trying to think of a good metaphor -- I'll play with fire in a forest, but I wont play with fire in a distillation plant producing gasoline.

Re "how about selling puts on CRUS ??"

My post yesterday explained selling Jan '14 $16 Puts.

As of yesterday and CRUS, Jan '14 $18 Calls would be bought and partially financed by selling Jan '14 $16 Puts.

Being that I'm interested in this trade, I looked at it again early this morning. My, what a difference a day makes. Earlier today, the cost of the total trade explained in the above paragraph could be had by buying the same Calls at a cheaper price while selling the Jan '14 $15 Puts instead of the Jan '14 $16 Puts. The cost of the trade would have been almost identical to what I explained yesterday, but the Put strike would be a dollar lower. That adds quite a bit more downside margin while not changing the cost to set up the trade.

I already have a few trades set up in this style. They are all currently sitting with very large percentage profits. The one that would be similar to this one on CRUS is the one I have on MM. Look at the MM chart. It has a big drop, as does CRUS. My other trades of this style do not have that characteristic. A few weeks ago I bought MM $7.50 Calls for $1.10 and sold MM $5.00 Puts for $0.65. That made the cost of the trade equal to $0.45. Both transactions were for November 2013 options. Later ones were not available. I figured that MM will never get down to anywhere near $5 by November, and if they did then I would be happy to be Put shares there. But I expect the Put options that I sold to expire worthless in November. As of today, those Call options last traded at $1.40 because MM is up today in spite of what the rest of the market is doing. That means that my current profit (if I were to cash out right now) is at 211%. Several days earlier, when the shares were trading of $8, the profit was much higher. I don't see taking profits on this for quite a while. The stock is now above my Call strike. For every 45 cents the stock goes up from here, at November my profit rises by 100%. Granted it works the other way around, but when you set these things up at what appears to be bottoms, the odds are highly stacked to the advantage of the owner of the trade.

[BullNBear52]

During the dot com era stocks were trading at 30x earnings. Right now the average is 16x earnings which is about where the market has been historically.

[SilverSurfer]

this chart is....... AMAZING!





also, how about selling puts on CRUS ??

[SilverSurfer]

yeah, I lived in SoCal in the '70's and it was said "They tipped the United States and all the nuts rolled to California." Well the nuts grew up and had genius kids who became billionaires. I don't know Idaho but do know a few who moved there and like it.

[BullNBear52]

Asheville is the opposite of the preppers living in Idaho.

I get ads all the time from there trying to sell me land.

[SilverSurfer]

yes I still have a lot of family in and around Asheville so we visit and it is a blast now. They call it Bohemian which means it's full of freaks.

[BullNBear52]

How many renditions of the iPhone do you think Jobs left with the company? iPhone 6-7? Tablet whatever number?

Their strategy has always followed Intel and Microsoft. Intel comes out with a new chip and MSFT comes out with a new OS.

I'm always a day late and a dollar behind AAPL's latest products. I do own 3 iPhone 4s and the Tablet 2 but I bought them after the latest rendition of a product that really wasn't flawed to begin with.

Windows 7 is a great product. Who the hell wants Windows 8?

Supposedly the iPhone 5s will have a better display then the i5. Be still my heart. I'll toss my reading glasses and buy a man purse to carry it around in.

[BullNBear52]

High Point, NC. Used to be the furniture capital of the world.

We still have the Furniture Market here 2x a year.

Asheville is really nice. One of the places I could see myself retiring to.

[SilverSurfer]

APPL is bound to come out with a large new line of products or they will go the way of Blackberry. They learned not to give any indication of what is coming cause it kills sales of current fare but the next two years have got to be full of releases. Jobs left them with a chest of ideas and the peeps to develop, you think?

[SilverSurfer]

where in NC? I went to Chapel Hill and grew up near Asheville

[SilverSurfer]

Well Said JLS

[JLS]

SS,

I heard complaints last night on the TV. All kinds of references to historical patterns and events. Cycles over the last thirty-five years sited. The problem with that? All that history had higher interest rates, much higher. Those alternative investments do not exist at that time. Maybe they do, if you like junk bonds. Those are viable investments but they have a bad name.

When interest rates are this low, the competition for stock investment dollars is snoring.

A couple years ago you could hear every day complaints about low interest rates and how they are going to cause inflation, extreme inflation, and they point to history again and again. The problem with that? All that history didn't have all this sustained high unemployment. You don't hear those complaints anymore.

I'm getting sick and tired of gurus site history while not accounting for all the elements of that history, and their cause and effect relationships.

The true value of any investment can only be determined by comparing it with all investment opportunities, not just with a subset of like-kind investments.

The correction that all these people are looking for has already been going on for a while: from one investment class to another class; from one stock sector to another stock sector. It's a rolling correction. You can have a stock market standing perfectly still, yet you can make lots of money in that market if you move the money from sector to sector to sector.

[JLS]

Possible CRUS Option Trade

The image below shows calculated Support/Resistance levels for CRUS going back over three years, and it shows the most recent part of that date range in the candlestick portion of that image. If you check the history on a price chart, CRUS doesn’t even touch $16 until you go back to early January 2012. Prior to that it touches $16 quite a bit. Thus the huge spike on the SR chart. In fact, ignoring the recent touch of $18, the last time the stock traded $18 was also January 2012. That was a long time ago. So why do I care?

Because I want to buy Jan 18, 2014 $18 Calls, and the last Ask was $2.95. I also think that the recent resistance at $18 is not very strong because earlier SR at that level is 16 months old. If you look at the SR chart, significant resistance builds just above $20. I'll make that the target. So between the $16 strong support mentioned in the first paragraph and the $20 high-side target for this potential trade, I want a better deal than $2.95 for the $18 Calls. So I want to sell Jan 18, 2014 $16 Puts at the last Bid, or better, which was $2.15. If I do that, the total trade costs 80 cents instead of $2.95. The worst-case downside is that price drops below $16 at expiration and I have to pay that for all the shares contained in the trade even though the stock would be trading lower than $16, and it could actually be at $0. The SR chart says that falling below $16 support isn’t very probable. I mean that’s one helluvan SR spike at $16. I’m comfortable with that. If next Jan 18 the stock trades at $16.01, I only lost 80 cents. Meanwhile if the shares are stagnant, those Puts and Calls will loose Time Value so there's all sorts of possibilities to either extend the trade or modify it or get out.

Structured this way, the upside to the trade is infinite. If the shares go up and up, the Puts become worthless at expiration, and I could own shares priced much higher than $18 but I only have to pay $18 for them.

The downside of the stock going very much lower is not very likely. If it starts to look that way, there is plenty of time between now and Jan 2014 to modify the trade (buy lower Puts, for instance).

Anybody have any thoughts on this? How about selling Calls at a higher price instead of Puts to finance the trade? That works. The upside is limited. The downside is also limited. The upside is limited by the strike differential minus the cost of setting up the trade. The downside is limited by the cost of setting up the trade. This is not a bad way to go for beginners. If you spend 85 cents to set up the trade, you'll only make (at max) around $2 (difference between strikes). This is not bad for beginners -- risk 85 cents to possibly double your money?

[BullNBear52]

I've held F since June of 2008 when I bought my Focus and used our IRS rebate check of $1500.00 as a down payment on the car. I can cash out now and buy 3 more Focuses loaded. I think it hits $20 by December BWTHDIK.

I bought JCP at $16 right after 2 hedge fund managers went bottom fishing and picked up 25% of the stock. That was a couple of weeks ago.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=87320011&txt2find=jcp

I'd like to see it hit $20 and get the hell out. I may sell if it hits $19.25. Too many bashers out there.

I'm out of DUK after making a killing on that stock. I'm in NC and held that for a long time in the teens because of the divvy.

[BullNBear52]

Steve Jobs is dead.

it is hard to believe that apple won't go up if this market is going TO DA MOON on the Ben Rocket Ship

A coworker has held on to AAPL from it's highs. He has a hard time accepting that Jobs is dead.

He has an iPhone5 and he's ticked I downloaded GOOG's Search APP that comes with it's own voice recognition "Siri". He thinks I should have upgraded phones.

[SilverSurfer]

F was in character today,,, JCP would appear to be a black knight

[SilverSurfer]

you said "this midday drop while the market is at the top of the mountain seems to be specifically designed to shake out nervous Longs and give hope to weeping Shorts."

you were right! Where the Hey is this Market Going? TO DA MOON?

[SilverSurfer]

JLS, I OFFICIALLY OPEN THIS BOARD,,,, since I did become an assistant moderator at some time in the past, unless berg returns, anyone who wants to have reasonable discussion on stocks, politics - anything important and interesting,,,

CLEAN ONLY PLEASE....

Re: CRUS - it is hard to believe that apple won't go up if this market is going TO DA MOON on the Ben Rocket Ship and it is not like apple to destroy companies so CRUS is of interest. Thanks for posting on that.

[JLS]

SS ... donations and CRUS,

This is really about channeling and CRUS, but since the current subject is donations ...

I think I agree with a few of the posts I read here regarding donations but I haven't read everything, so I could be dead wrong.

Anyway, I saw a TV program several months ago which shows just how corrupt politics is in this country, and yet all that was talked about on that show was donations.

The TV program explained something like this: certain political organizations must file reports to the IRS. But the money that comes in (and is reported) can be farmed out to subsidiary political action groups. This is where my memory gets a little cloudy, so there may be yet another group one more step down the chain. However deep it goes, there is a level at which absolutely nothing has to be reported. They do not have to report where the money came from, nor where it goes. We are talking about tens and hundreds of millions of dollars here. Who says it goes for campaigning at all? Who says it doesn't go into the pockets of the candidate himself and/or his key assistants and supporters? Who says it doesn't even go into the pockets of a Supreme Court Judge?

And we point fingers at the corrupt Russian political system.

Whatever.

CRUS. Since you brought up the subject of CRUS at another link, CRUS made yesterday a new 16+ month Low. Today CRUS opened above that Low and will most likely Close with a small candlestick Body. If that body has a size that is 6% or less of today's trading range then it will be called a doji and its Body color means nothing. In that case, a Close tomorrow above today's doji Close will be a Pythia Buy signal, independent of that day's Body color.

If Pythia Closes today with a larger Body (not a doji) and that Body is green, then today will be a Pythia Buy signal for CRUS as long as price does not drop down and touch the bottom of the channel (which I already think is a given). In other words, there might be something to be made on a dead-cat bounce. If the large Body today closes red today then we have to wait for tomorrow and see what kind of candle forms tomorrow. A green Body tomorrow with price not touching today's Low is a Buy tomorrow. If not, we wait till the next day. I think I got this right.

I'm looking at this because I might try that trade, though I'm a little more interested in closely watching AAPL as I think it might be ready to go up.

You know, this midday drop while the market is at the top of the mountain seems to be specifically designed to shake out nervous Longs and give hope to weeping Shorts.

[SilverSurfer]

we agree on that....


will chart F and JCP , thx

[BullNBear52]

F and JCP currently.

[BullNBear52]

Yes. That tax code is so broken it's pathetic.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=88176556&txt2find=sierra

And,

The NRA and the Sierra Club have one each.

Karl Rove and the president has one.

As I said previously about the first 2 they are hardly apolitical.

The latter 2 certainly are.

The best solution to the problems with 501(c)(4) organizations is to eliminate them completely. The problem with the (c)(4) designation is that it is essentially a charity that is permitted to engage in unlimited lobbying and some significant amount of political campaign activity (as long as that activity isn’t the organization’s “primary purpose”) in exchange for denying the organization the ability to receive deductible charitable contributions.

So let’s make it simple: if you want to be a charity, be a charity and live with the 501(c)(3) limits; if you want primarily to be engaged in the political process through lobbying or otherwise, pay taxes like everyone else or register as a 527 political organization.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=87976694&txt2find=primarily

[SilverSurfer]

any dispute >>??<<

IRS agents deliberately targeted numerous conservative and Tea Party groups applying for tax-exempt status. Their goal: to prevent Mr. Obama’s opposition from being able to organize and raise money — especially during the closely contested 2012 election cycle. The IRS was transformed into a partisan arm of the administration in order to persecute Mr. Obama’s critics. This was not only unethical, but also unconstitutional and illegal. The IRS engaged in massive, systemic abuse of power.

Applicants were asked to disclose Facebook posts, Twitter messages, books they have read, names of confidential donors and volunteers, friends who shared their political views, the texts of past and potential speeches, and for some even the contents of their prayers. This was an assault on individual liberties and religious freedoms. The IRS was behaving like the secret police of a socialist autocracy, snooping on its own citizens.......

At its core, the IRS scandal is about the subversion of our democracy. It is more than big government run amok (as some Republicans claim). It is the embryonic creation of a liberal fascist regime. The Obama administration is erecting a thug state, transforming the IRS — and other federal agencies — into a political weapon to bludgeon opponents. This is the kind of behavior common in Venezuela, Cuba and Russia.

The administration is desperately trying to limit the political damage. It is engaged in stonewalling and a cover-up.

Read more: http://www.washingtontimes.com/news/2013/may/24/an-enormous-abuse-of-irs-power/#ixzz2UMpIfsCf

[SilverSurfer]

blast from the past

Dec '08

[SilverSurfer]

any Channeling Stocks ??

[SilverSurfer]

BNB, I am not an IHUB paying customer - can post on Politics... but I have read some there. I have not had time to keep up with the W.H. scandal machine that is steamrolling O's second term. Every Prez has had them, especially revealed in Term 2, so much so, it's a wonder any of them even bother to run again. Until I happen to catch a bit of the local talk radio today and a Monica Crowley was on. She wrote books on Nixon, doing years of interviews before he died so she seemed to have some cred on prez scandal. The way she laid out what has been going on sounded pretty serious. What Tricky Dick did was bad but using the IRS to target, otherwise legal, political and religious opponents would be the definition of abuse of power. Targeting Systematic and pervasive. Asking groups what they prayed about, or what were thinking on certain subjects,,, it was not even veiled in any way. Hearing what is, not being disputed was done, because it came in writing, it struck me that the IRS peeps carrying out the dirty deeds could not have been so dumb as to think their actions would not be perceived as blatant illegal targeting, but they must have assumed they would get away with the outrageous abuse since they were part of an administration that it would seem could do no wrong in the eyes of the press and it's own justice department. The best thing those responsible could do would be to spill every bit if truth they can, asap, then throw themselves on the mercy of the court expecting a pardon from B.O.

[SilverSurfer]

BullNBear52, I don't post on Tornado Board - gave up on honest debate there - but do lurk very brief from time to time, just to see if there is any change and of course - no. I do like a liberal perspective to round out my views, for example, I am encouraged by many of the Black Democrat Liberals who have come out strongly against the recent Obama Administration revelations. Freedom of the Press, and Equality Under the Law and Tax System, are the two most important constructs of a democracy and he or his people have stomped chit out of them.

[BullNBear52]

I like an honest debate. F6 wants to run his board by his rules well it's his play ground. The last thing I need is to be cursed at by some idiot. I'll respond to your post over the weekend.

[SilverSurfer]

forgot all about this board. There are more than two idiots on the board in question, but that is part of the fun. But seriously the fiat money system, where the Fed can create cash as they see fit is going to prove a disaster and soon, imho

[BullNBear52]

If you would like to continue this conversation let me know. I don't post on the other board any more for my own reasons.



out of thin air..."the banks which owned these toxic assets—would lose so much money that they would go bankrupt. If they did go broke, the U.S. and world economies would take a massive hit.

So in order to avert this fate, the Federal Reserve bought these toxic assets from the banks—but the Fed didn’t pay the market value for these toxic assets, which were pennies on the dollar: Instead, the Federal Reserve paid full nominal value for the toxic assets—100¢ on the dollar. The banks the Fed bought these toxic assets from became known as the Too Big To Fail banks—for obvious reasons.

How did the Fed buy these dodgy assets? Simple: In 2008 and ‘09, the Fed “expanded its balance sheet”. That’s fancy-speak for, “The Federal Reserve created about $1.5 trillion out of thin air.” That’s essentially what they did. The Fed just decided, “We’re going to create $1.5 trillion”—and lo and behold, $1.5 trillion came to be.

What did the Fed do with this $1.5 trillion it conjured out of thin air? Why, it used it to buy up all the toxic assets and other dodgy assets from the TBTF banks.

What did the TBTF banks do with all this cash? Why, they turned around and bought U.S. Treasury bonds.

U.S. Treasury bonds are called “assets” by sophisticated finance types—in fact, sophisticated finance types call all bonds “assets”. But they’re really just debt—including Treasuries. U.S. Treasury bonds are certificates of debt that the U.S. Federal government issues, in order to finance its shortfall, the deficit.

The U.S. Federal government has been running monster deficits for a number of years now—but lately, it’s gotten pretty bad. In 2009 as well as 2010, the Federal government shortfall was over $1.4 trillion. This is roughly 10% of total U.S. gross domestic product—both in 2009 and 2010: A staggering sum of money. And it is likely that for 2011, the deficit will be another $1.5 trillion or so.

The Federal government has so much outstanding debt that it is unlikely to ever be able to pay it back.

A lot of people think this. A lot of sensible people think that a day will come when the markets no longer believe in the Federal government’s promise to pay back its debt. A lot of sensible, smart people think that, one day, no one will buy any more Treasuries—

—yet every week, Treasury bonds get sold with numbing regularity. The U.S. Federal government has never put Treasuries up for auction which did not get bid on.

Who are the people who buy these Treasury bonds? The primary dealers—that is, the Too Big To Fail banks.

In other words, the TBTF banks are financing the Federal government’s massive deficits. How are they doing it? With money the Federal Reserve gave them for their toxic assets.

This is one leg of stealth monetization........

[berge]

very nice, thanks. marked that for adding to my notes.

[SilverSurfer]

good article here > http://seekingalpha.com/article/111364-recent-winners-and-losers-on-the-leveraged-etf-front?source=email

[berge]

I think a lot of the commodity based ETFs are going to be
monsters when this starts to swing around. I posted a link on the swing board to a full ETF list, and Yahoo finance has a decent ETF section