ICARUS ALTITUDES (IYT,DIA,FAS)

ICARUS ALTITUDES (IYT,DIA,FAS)   Everyone wants to fly.  Everyone wants to be a spaceman and soar to the heavens, free from the shackles of this mortal coil.   Look at Playboy Branson of Virgin Airlines fame, look at Amazon’s Bald Bezos, look at Elon Musk from the Tesla boondoggle, and you’ll understand that the rich and famous no longer believe that flying across the ocean on a private jet is chic.  Today’s vogue travel plan has to involve oxygen tanks and space suits. How it all turns out is anyone’s guess.  Sure, it could be like Apollo 11.  Or, it could end up like another Kim Jong Un flop that blows up as it leaves…

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Financial Two-Timer (FAS,DBC,OSX)

Financial Two-Timer (FAS,DBC,OSX)   You won’t see this talked about too much anywhere else, but we feel it’s worthy of your attention.   On Tuesday afternoon, Transportation stocks logged new, all-time record highs, with the Dow Jones Transportation Average reaching 9795 intraday.  Yesterday it tacked on a further gain.   As we’ve pointed out numerous times, we’re not whistling Dixie when we say this is news.  There’s no question about it.   For as Dow Theory tells us, when the averages are rising in tandem to new highs, we have what’s termed a ‘bullish confirmation’.  There have been six such instances of that this year, and as the chart below shows, that’s exactly what Tuesday’s…

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President Hope (FAS)

President Hope (FAS)   Let’s run it down…   Stocks took off with the conclusion of campaigning last November and haven’t looked back.  We have new record highs on at least one of the indices almost daily, and despite a slightly less enthusiastic slope over the last few months, the rise continues.   And that has led many to ask if there’s more to come.   Why?   Well, the gains themselves notwithstanding (they’ve been extraordinary and almost unprecedented), traders and analysts have led us to believe that the surge higher was predicated on the policies of the incoming president, that included, among other things, significant infrastructure spending, a massive tax reform package, and a…

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Buy Me a Gift! (TSLA,XLK,FAS)

Buy Me a Gift! (TSLA,XLK,FAS)   There’s nothing more disheartening than having to remind someone it’s your birthday.  Not just anyone, of course, but someone who’s supposed to know and has forgotten.   Why?  Because it puts you in the awkward position of making someone else feel awkward for the purpose of getting something from them. Face it: there are those who will certainly forget, those who you HOPE won’t forget, and those whom you can’t under any circumstances LET forget, because THEY can’t afford to – they’ll feel worse than you if they’re not reminded.   And there the trouble begins…   Here at Normandy – birthday or no – we feel it’s our…

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Guy Can’t Stop Shuttin’ Up! (XLK,FAS)

Guy Can’t Stop Shuttin’ Up! (XLK,FAS)   Look around you, and you’ll see – it’s clear – the more that people talk, the bigger trouble they get into.   Is there any doubt?   Consider your own experience.  If you’ve been breathing for more than a few decades on this water-orb, your own life probably provides ample testimony to the fact that you should have just shut up.  You never would have gotten into that mess with your wife/boss/brother/ son/employee/bartender/etc. had you just kept your mouth closed.  Not that there isn’t a time for speaking your mind.  But that’s not the way things usually play out.   When we’re hot, and we want to let…

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Running Numbers (XLK,IYH,GS,FCX,FAS,C,TLT,HYG,AXP,V,RSX)

We’ve got so many trades come due, there’s little time for anything else!   Let’s get right to it.   First, we’ll take a look at a trade we launched over a year ago, on the 12th of November, 2015, in a letter called The Sachs of a McMorAno.   There, we urged you to dump the commodities and move hard and bullish on the financials, using two stock bigshots to play the trade, Freeport McMoRan (NYSE:FCX) and Goldman Sachs (NYSE:GS).   The trade recommended you purchase the January 2017 FCX 10 PUT for $3.00 and sell the GS January 2017 GS 150 PUT for $4.95.  Total credit on the trade was a fat $1.95….

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Slap-Happy Credit Trade (V, AXP, FAS, HD)

We start today with the dollar, as we believe the case for long term dollar strength is a powerful one.   And that’s not just because the Euro is taking a drubbing after Italy’s latest referendum results.  The Euro will likely see a continued arse-kicking as France, Germany, the Netherlands and other countries begin their move to the political right over the next year.  Elections are expected to significantly weaken establishment parties in those countries in the spring and summer, and with it, support for the very idea of a unified Europe and currency.   That’s all dollar positive, of course, as are current weaknesses in the Japanese Yen and Turkish Lira.  The latest dollar-yen…

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Diversions! Distractions! Shell Games and Worry! (C,FAS,TYL)

We’ve got one trade to report before we move to this week’s business, and it goes like this –   The trade was opened on the 30th of June in a letter which featured Tyler Technologies (NYSE:TYL).  It was called July Rant, and it urged you to sell the TYL July 170 CALL for $1.70 and buy the TYL September 170 CALL for $8.70.  Total debit on the trade was $7.00.   Now, it’s never advisable to engage in braggadocio, particularly in this business, where you’re bupkus and spat upon if your last trade was a dud.   Fortunately, we’re specialists in ‘last trade success’ (and equally competent in the braggart department), so we offer…

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Living on Reds, Vitamin C and Cocaine… (UHAL,FAS,IDU,DIA,AAPL,AMZN)

We’ve mentioned it before and we’ll do it again, because there’s no getting around it.   Most folks are going to be moving in the next few years.   Some by choice.  Some not.   The name we’ve chosen for the phenomenon is ‘The Great Migration’.  Maybe others have used the term, too.  If so, we haven’t seen it.  Either way, it’s coming.   Like all the global upheavals of the last few centuries, including two World Wars and a number of revolutions that spurred massive population transfers from Moscow to Lesotho to Dakkar to Timbuktu, what’s coming will be equally epic.   And don’t believe for a moment that wealth or status is going…

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Rotate Your Money, Pal! (IDU,FAS,HD)

Most people who drive automatic cars are unaware what would happen if, while cruising at highway speed, they threw the transmission into reverse.   Now, we’re not suggesting anyone try this on the way home from work, or even down at the local speedway, but having made the blunder ourselves on one occasion, we can assure you that the resulting action is not what you’d think.   There’s no riotous gear grinding, no thousands of itsy bitsy metal pieces shooting out like bullets onto the road, no screeching/wailing/careening this way and that, a la some late 70’s Burt Reynolds movie.   None of it. The car turns off.   It what?   You heard me….

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