Washington Redeemed! (AAPL,EWP,CBOE,FB)

Washington Redeemed! (AAPL,EWP,CBOE,FB)   Never were fans of big government here at Normandy.  Don’t think it’s good for the overall health of the nation, nor for its better management or even for its longevity.   Never trusted it.  Always figured the goal was to put everyone on the payroll and then force feed them worthless currency.  Where else are the buzzturds gonna turn for a buck?!   Nope, always preferred the local brand of self-governance – really local! So the thought of someone – an outsider – coming to the big house ready to do battle with the forces-that-be was intriguing.  But whether Senor Trump actually fits that bill remains an open question.   We’ve heard about ‘draining the swamp’ and we see a contentiousness between the White House and the establishment leadership that has certainly never existed to this degree.  But whether this actually leads to the change that so many desire – a restrained government reach, and more power to local authorities – is too early to tell.   It would be nice if the extraordinary waste of our tax dollars were actually curtailed.  No more federal research money spent on “incontinence cups” and ‘flatulence valves” (no joke!),…

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The Lord Giveth… (QQQ,DIA,VOX,HYG,CBOE,KKR,FB)

The Lord Giveth… (QQQ,DIA,VOX,HYG,CBOE,KKR,FB)   It’s hard to find anything negative to say about a market that has been on an even-keeled, upward trajectory for the last eight years.   You can mock what underpins its strength, you can deride the foolishness of those who’ve made millions just buying and sitting put, and you can wail like a newborn over the fundamental and technical excesses that are sure (eventually) to rock the very foundations of the financial edifice and send the global economy off the edge of the planet. And eventually, we admit, you’ll be right.  The fun will come to an end.   But it’s far more likely to be a jagged up-and-down affair than the simple cliff-dive that most imagine.  We’re of the school that contends that a wild volatility will seize the market before the final top is in, sending it hithering and thithering in a manner that breaks every man Jack who has more than a few bucks invested in the equity amusement park of the next few years.   And a quick look at the charts of the major world indexes reveals that we might now be approaching our first fitful turn in that process….

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Sell the Market (CBOE,FXI)

Sell the Market (CBOE,FXI)   Here at Normandy, one of the means we employ to determine the health of the market is to examine the shares of the world’s major stock exchanges.   The thinking is straightforward.   When the markets themselves are profitable and their shares are rising, it’s a sign of good things to come.  When they start to spin their wheels or outright decline, we take it as an ominous signal that weakness likely lies ahead for the major averages, as well.   So how do things look today, with the Dow and NASDAQ and various other world indices at all-time highs? Let’s have a look at the equities behind several of the world’s largest stock exchanges to gain a better understanding of the state of our market.   We’ll start with the largest of them all, the Intercontinental Exchange Inc. (NYSE:ICE), a company with a market cap of nearly $40 billion that owns the New York Stock Exchange as well as another eight futures and derivatives exchanges worldwide.   The stock carries a nominal 1.20% dividend yield and trades with a P/E of 25.64.   Here’s a look at her daily chart for the last three…

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Wall Street Love; Main Street Violence (VIX)

We’ve spoken with increasing regularity in this space about what we feel is the inevitable breakdown of civil society in America. What we haven’t been so clear on is a timetable – when it will begin, and thereafter, what particular action will be needed once the difficulties present. Because of the nature of our readership and the business that we’re in, it’s likely that the vast majority of you are insulated to some degree from the conflicts that have afflicted the citizens of St. Louis suburb, Ferguson, Baltimore, Chicago, and most recently, New York. The tensions that have manifested in these locales are not isolated occurrences, are not limited to these particular hotspots, and are not over. Ferguson, Baltimore, et al. will continue to see conflict, as will other cities north and south, on both coasts and through the middle for a great number of reasons that we haven’t the space to enumerate today. Suffice to say that an array of forces economic, social, moral and spiritual have brought us to this point, and our engagement as a nation with the outside world has also played a role in the outcome. All that notwithstanding, we’ve repeatedly encouraged you to make…

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