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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Thursday, May 22, 2014

America is losing its global advantage

I have always thought the greatest asset America had over the world was two things, low corruption and civil freedom.

I have already covered about violations of the constitution with due process and privacy from government.  I have posted on corruption.

Here is examples of BLATANT corruption, and I wait to see if a state or federal official steps in and not only enforces the law, but prosecutes the officials who do not hold up the law.

As America doesn't offer as dramatic of a difference between freedom and low corruption, there is less of a differentiation of USA for small business.

But we can rely on our lawmakers to have an even head and good judgement to defend the citizens. Or maybe instead they are spending their time making up problems that dont exist instead of pushing on real issues....

Tuesday, May 20, 2014

Fools Folly

Unless tomorrow AM has a ridiculous open lower, I am covering all my shorts in the market.
Since my last post, the market really hasn't exhibited weakness.

I can't imagine a scenario where I try to short again, its plain foolish based on all aspects of market action.  No matter what happens, the market rebounds.

If this trend continues, then back to gold miners is the best play.  As an example. this morning someone DUMPED 500 Million dollars in gold assets in a flash, gold rebounded nicely today.

So while the market did go down today, I am unimpressed by the action.
I'll hit out of options, may keep some of SZK.  Oh well, after watching for years for a break down, its a fools folly to try to predict when this ends.

As I said in 2010, the end maybe a break up not down, and who wants to be short into that!

Monday, May 12, 2014

First hit, right on the Chin, whats next?

Today was one hell of a rally.  Needless to say, my buying spree on Friday should have been delayed to today.
SQQQ strike June 21st, 56 call, shoot for 3.90 an option, buy at the open, 10
That position took a 50% NOSEDIVE IN ONE DAY!
Yikes! Hind sight I should have done 1/2 Friday 1/2 today, buying all position on a whim is never good.

But even with that, I am still optimistic for a market decline this week, and the weeks ahead.

The Volatility Index took a nosedive today, and what goes down usually goes up.  VIX going up means market volatility which is down.

Today the headlines reminded me of back in 2008-2009, shouting at the rooftops to encourage stock owners that all is well, just before the left hook comes.

Then again, we could rally for weeks ahead, how do I know?
If I had tons of $$$ to risk, I'd be doubling down today.
Instead I nibbled, CALL (SQQQ) PROSHARES TR SEP 20 14 $55 at 5.10 an option. (2).
With such a drop today, I couldn't double down, but I did add with a farther expiration.
If I had real strength, I would have bought 1 week from this Friday much cheaper and many more shares.

Good Luck!

Thursday, May 8, 2014

Time to take it on the chin

The market seems exhausted, and Gary of Smart money tracker not only agrees, in his paid service has a variety of reasons pointing to this.  Assuming the market FINALLY starts to head lower, we have gone up for so long, so high, this things may quickly fall apart.

Gary's thought is by June FOMC, we could have capitulation on market deterioration, ready for the next free dollar give away.

I have NOT gambled heavy in years, since 2010 really.  But I am making  a big play for the AM.
I don't know if I'll get these prices, but I am trying.
I advise NO ONE to do this, really, it is stupid.  But when I look at the chart below, maybe not so much.

Options are high risk, I may hit out of all of these by next week if I am eating crow.

Triple inverse Energy - Energy up over 18% last 3 months
ERY Strike June 21st, 17 call, shoot for 60 cents an option at the open, buy 10
Double inverse Oil - When markets fall, energy takes it on the chin.
SCO strike June 27th, 28 call, shoot for 1.50 an option at the open, buy 10
Triple inverse S&P500 - Catch general market fall
SQQQ strike June 21st, 56 call, shoot for 3.90 an option, buy at the open, 10
Consumer good - market falling does not make good for consumer
SZK buy 1,000 shares at the open, market order.