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Re: Montanore post# 12916

Thursday, 07/23/2015 7:27:54 PM

Thursday, July 23, 2015 7:27:54 PM

Post# of 39190
Montanore, a few other points for your consideration: 1. As predictions of future revenue increases for any given security, AAPL for instance, the options traders continue to trade "Call" Contracts with specific "Strike" amounts specified in the contact, which is 100 shares per contract. I don't know if you trade options or have knowledge of options trading? At any rate, the trading strategy of "covered calls" has become a very popular low-risk trading strategy. So option contracts are an active day-trading phenomena. Now, these options contracts are real shares that can be exercised if a trader purchases the option and decides to exercise the actual purchase of those 100 shares per contract. This has a profound impact on the pps at earnings as these trades are completed weeks before earnings reports even come out. Additionally, the US dollar becoming stronger overseas means US products cost the consumer more and therefore reduce gross sales of US products abroad and makes imports to the US even more cost effective here at home. So our exports reduce and our imports increase. Couple all this with QE and we get US stocks that are many times overvalued and eventually we have a market correction so big that Wall Street crashes.

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