Hillary Dumping Arsenic in Orphanage Drinking Water! (FB,TSLA)

The war is on.   And not only is our water muddier for it, our minds have also gone fuzzy.   We won’t make light of these elections; there’s obviously a lot at stake here.  And though it may not make a tremendous difference for the country fifteen or twenty years down the road, at this moment the differences between the two candidates couldn’t be starker.   They may never have been.   In fact, as far as modern democracies go, it’s not likely since Juniper Redbottom defeated Harryass Chewman in the Canadian federal elections of 1871 that such a wide chasm existed between competing platforms. As many may already know, that election was later deemed a fraud by authorities and was summarily re-balloted with new candidates.  It seems our northern neighbors were not impressed with the spanky campaigns waged by the two, both of whom later admitted to be members of a Moonie-like cult that engaged in patently un-western derriere devotions.   Oh my! Lunar Lovers!   It’s all a bit frustrating of course, to watch the market drift sideways, awaiting the catalyst that will eventually send it Apollo-like to its ultimate orbital space-stop.  Could it be the election…

Read More

Keel-Haul the President! (FB,TSLA,KOL,SPY)

Truth is, we get a little P’d-off every time this quadrennial drama of presidentiality falls upon us.   The reason for the ire is part philosophy, part real life, and we’re going to take a moment to explain it to you.   For starters, know it well – any time someone appeals to you about the need for all of us to be ‘brothers’ or to ‘stand united’ or any other such drivel, they’re almost always looking for someone to take orders.   Their ideas, their orthodoxy, and your backside … to take the whip.   It’s an iron rule, and you should run as fast and as far from these people as you can.  Very often, they’re people who talk a lot, too – another quality that should trip your hair-triggers and make you flee to Appalachia.  Quiet people are almost always more trustworthy.  Not to a man.  But on the whole, they’re a much safer bet, in our experience. What gets under our skin is the increasingly meddlesome nature of the state and the incomprehensible tolerance of so much of the voting public to put up with it.  We won’t delve much deeper than that, except to ask,…

Read More

Sell Everything! (SPY,GDXJ,GLD,TSLA,GM)

We had a very strong sell day on Friday, and much of the ink that was spilled over the following days was dedicated to convincing us that the blood is only beginning to flow.   But is it really time to break out the cautery?  Grab the gauze box and squeeze the wound?   Time to throw on some cayenne pepper, maybe?   Ho, ho…! MY. GAWD.   Before we get to the answer, consider some arguments in favor of the continued grand selloff hypothesis –   Investor Complacency   Some swear by it, but we don’t see it, frankly.  The AAII numbers that we watch show a very frightened Ma and Pa investing cohort that’s unable to do anything but sit on their thumbs.  The last AAII bullish sentiment readings were 29.75, and the bearish were 28.48.  That means we’re anything but complacent in the traditional sense.  For that to be the case, we’d have to see at least 50 or 60% bulls.  And we don’t.   What we do see is the neutral crowd in the lead by a longshot.  Neutral, by the way, may as well be ‘neutered’ as far as the investment game goes.  Someone who…

Read More

Commodity Revolution (KOL,TSLA)

There’s something happening in the commodities, and the time is ripe to address it.   But first, we close a trade.   On July 12th we recommended you sell the TSLA July 29th 215 PUT for $5.25.  The letter was called Smoke, Fire and Mirrors, and a right blaze of a trade it was!  Today, the same option can be repurchased for $1.79.  Do it and you come away with $346 net.  That’s 193% in two weeks.   BALD COOL!   Now back to the commodities.   We’ll start with oil, where a great deal of action, first bearish, then bullish, has been occurring for roughly two years.  Here’s a chart of the yucky stuff to give you an idea of the types of swings it has been experiencing in just the last half year. After falling from close to $100 a barrel to $35, crude recently sprung north by 50% to close at better than $53.   Them’s moves, baby.   Now, oil comprises a great part of the broader commodity complex and affects the general level of prices for goods globally.  So much of our world moves, works and wars over the stuff, that it’s natural that changes…

Read More

Smoke, Fire & Mirrors (Tesla,HYG,DIA)

The market is a perfect mirror of the mindset of the nation. (Tesla)     It’s not so complicated, really.   Consider: in the 1920’s a powerful liberal, even libertine trend prevailed in the personal sphere, an escapism, you could call it, and an exaggerated belief in debt financing and the constant growth required to repay it.   And lo and behold, the market at the time was characterized by an equally escapist blow-off top rally in 1928/1929, built on outlandish dreams of Gatsbean wealth and, of course, the exceedingly easy margin offered by the brokerage business of the day.  It was an era of anything-goes prosperity that fooled everyone into believing it would last forever.   Of course the whole thing ended badly, with millions jobless and the financial state of the entire planet thrown into ruin for a decade.   In a word, reality had the final say in the matter, and no matter how hard folks pined to divest themselves of what was right and true, in the end there was no escaping the bedrock that awaits every dreamy-eyed skydiver who insists on jumping without a chute.   Fast Forward a Century (Tesla)   In our case…

Read More

System Signals Silver Sale (SLV,GLD,XAU,TSLA,GM,MSFT)

There are all sorts of trading systems out there.   Some old-timers swear by the Graham and Dodd fundamental model, that tells you to buy them when P/E ratios and dividend yields are sparkling and dump them once the ratios are no longer competitive.   Others will tell you that’s balderdash, and only technical analysis can produce for you winning trades over the long haul.   There are those who swear by cycle analysis, point and Figure charting and Elliott wave theory.  Some adhere exclusively to Dow Theory. And still more go in for Gann triangles and Fibonacci retracements.  And believe it or not, some have even made consistent money trading the interplanetary orbitals of financial astrology!   Here at Normandy we’ve examined them all at one stage or another, and we’re here to tell you that absolutely no system has all the answers – and certainly none is foolproof.  But we can also tell you from experience (and the academic literature is fully behind us on this) that the single best method of making money in the trading arena is by using a trend following system. It doesn’t sound too exotic, and it’s not likely to make you the…

Read More

Trading Basics (TSLA,MSFT,OLN)

We’ve had several readers contact us over the years to ask how it is we stick so fiercely to the same set of technical tools to obtain our read of the markets.  And the answer is simple.   Our reliance on a set of four moving averages, volume, RSI and MACD have everything to do with the fact that, after almost twenty-five years of toying and testing every possible indicator available, these ones actually work consistently. Now, that’s not to say that other tools won’t work, or that we don’t occasionally rummage through the technical toolbox to confirm what the above named indicators are telling us.  No, no.   Indeed, we look to a variety of metrics to help us gauge market direction, including price patterns, sentiment numbers, Fibonacci counts, Japanese candle formations and a host of other market internals.  But from the standpoint of pure technical analysis, the above four indicators are, for us, 90% of the show.   And this is how we use them –   RSI and MACD   These two indicators work in tandem, with RSI leading and MACD confirming.  Once RSI crosses above (or below) its midway ‘waterline’, we have a bullish (or bearish)…

Read More

Imminent Inter-Galactic Planetary Barrage! (TSLA,GM)

It’s getting a whole lot of coverage these days, so folks are beginning to wonder if it’s actually something to worry about.   The issue of the infamous ‘Planet 9’ or ‘Planet X’ or ‘Nibiru’ has captured the imagination of doomsayers and conspiracy theorists for decades… but now Wall Street?   Indeed, it’s so.   A number of anonymous strategists and directors from some of the biggest corporate entities on the street recently formed a group called “Renegade Prophets” that issues fortnightly press releases commenting on the approach of the star (or planet, or whatever it is), including photographs and advice to investors about how best to survive the inevitable impact of the nebulon comet-rock… and, of course, where to put their money.   The latest missive is signed by a man (apparently) who calls himself the MonoCol Priest of Caitlyn, and in it he urges readers, among other things, to engage in a degrading bacchanalian ‘subservience’ ritual that follows a minimum deposit to the group’s offshore trust.   Returns are guaranteed, of course, and are based on movements in LIBOR and an apparently new metric called the BOWELL-QUAKE.   We’ve yet to verify any of the group’s claims, though…

Read More

Don’t Miss the Boat (MSFT,TSLA,GLD,FB,FXI)

With the biggest turnaround in the stock market in 80 years now upon us, the greatest danger facing investors is no longer being invested in equities – it’s rather missing out on what could BE a profoundly successful investing year.   That’s right, despite Wall Street’s worst start to a year ever, the major indexes have now sprung back into the black for 2016, and that has folks looking over their shoulders, wondering if it behooves them to do like their neighbors and colleagues and get back into the investment saddle. We just can’t go out anymore…   Now, whether the turnaround is due to the latest round of earnings, which were far better than expected, or the latest fed-meddling, or because folks are genuinely getting used to the Donald’s hair, is immaterial to us.   We prefer to look at the scoreboard.   And the bottom line is – we got too deeply oversold.   Chase the Market – Without Losing Your Head   The greatest profits are made from market-following systems, and we do our best to give you that here at Normandy.  We don’t find it necessary to spot the turns precisely – because there’s no need.  Our…

Read More

What Will Be in 2016 (TSLA)

Let’s put things in perspective –   First, we’ve seen the rate hike, and it did precisely nothing to equity markets. The NASDAQ remains less than 3% off its all-time high, the S&P 500 and DOW a mere 4%. Japan is off its latest peak by 9%, while the Chinese market, after wild fluctuations this summer, a major currency devaluation last week, and perennial life-threatening smog, continues to consolidate.   The commodities look like a post-exorcism diablo, with oil leading the pack now into the third circle of hell and the gold buggerers screaming for investigations into the maniacal freemason cabal that continues to press all the world’s buttons.   And in spite of them, equities remain stable. Fourth quarter earnings are projected to be lower, and there’s much to be said about the latest thinning of the markets – indeed, any objective view of breadth would prove that the indexes are being lifted increasingly by a narrowing cohort of busty, big name corporations with a strong connection to government spy agencies – outfits like Facebook, Google, Twitter and Microsoft.   War. Everywhere you turn, there’s talk of arming, re-arming, threats, explosions, terrorists, boots-on-the-ground, decapitations, bombings, drones, and roving masses…

Read More

Powered by WishList Member - Membership Software
GET YOUR FREE SPECIAL REPORT:
"THE SEVEN DEADLY SECRETS OF CHINA"

GET YOUR FREE SPECIAL REPORT:

"THE SEVEN DEADLY SECRETS OF CHINA"

Enter your e-mail address to claim your FREE Special Report “The Seven Deadly Secrets of China”

You have Successfully Subscribed!