Out With the Old… (DIA,XRT,PIR,FIT,SLV,XBI,XLE,GS,UIS,SIRI,RSX,QQQ)

Out With the Old… (DIA,XRT,PIR,FIT,SLV,XBI,XLE,GS,UIS,SIRI,RSX,QQQ)   The local authorities in my city have just notified me that my newborn son’s name is  not acceptable to them, and that I’m going to have to change it.   If ever there were a case of government overreach, this is it.   They’ve informed me that in order to keep the moniker that I’ve longed to give him, I’ll have to go to the courthouse on my own time and at my own expense to have the child’s name officially registered before a judge.   If, of course, the judge agrees. In this day and I age, there’s no shortage of asininity in the world.  I can be…

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Wonderful World of Mid-Caps (MTD,IWR,DBC,XLE)

Wonderful World of Mid-Caps (MTD,IWR,DBC,XLE)   Well, we’ve waited… and waited… and waited….   We’re patient people, after all.  So it doesn’t kill us to bide our time.   But we have to admit that it’s getting a little ridiculous.   As of the latest data, the NASDAQ market has set an all-time record number of new highs in a calendar year at 63.   Have a look – The last time we got a reading this high was back in 1980.   That’s almost 40 years.   But not only have we seen relentless buying on the part of investors over the year; we also have a situation of persistent calm during the entire…

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The Snowball Manifesto (XLE,AAPL,TSLA)

The Snowball Manifesto (XLE,AAPL,TSLA)   Here at Normandy we believe that the dichotomy purported to exist between the so-called ‘Globalists’ and those who consider themselves part of the “Liberty Movement’, is a false one.   Yes, there are those – from both the right and left of the political spectrum – who believe that economic and political power should be concentrated in the hands of a few elite superiors.  We call them ‘Globalists’.  And their motto is ‘Trust your leaders’.   Then there are those who believe that power should be decentralized to the greatest degree possible, even at the expense of many long-established, well-run Washington-based entities that serve the common weal and boast a…

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Crude Drug Dealing (XBI,XLE)

Crude Drug Dealing (XBI,XLE) Hang on tight as we whiz you through a mélange of charts, numbers and full color pictures of our beloved Auntie Mae when she was just a coy little rutabaga.   But first a word of introduction.   The latest geopolitical tension has given a lot of folks the shakes.  Nuclear tests on the Korean Peninsula, armadas of US military ships trailed by Russian and Chinese watercraft, Russian warships tailed by British frigates, mothers exploding in Afghanistan, airstrikes and sarin gas in Syria, French elections, upcoming British elections and all the ongoing hullaballoo in the Middle East’s Gulf States, have both put the world on edge and… had a genuinely salutary…

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Playing a Near Term Bounce (UPS,HD,USO,XLE,DIA,UCO,EWJ,HYT)

Before we look at a number of trades that came due with the January options expiration, just a quick word on the stealthy manner in which the market operates.   We say ‘stealthy’ as if the market actually had a mind of its own and some sort of character or personality, but it’s not actually the case. Well…   What is true, is that at any given moment the market takes on the personality of its participants, morphing into a being completely different than it was an hour or day or week before as the collective inputs of traders large and small, all their fears and desires and greed and loves and hates are amalgamated…

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Closing an Oil Winner (FCX)

Before we dive into the cheesecake, a quick word on oil. We’re of the opinion that this week will tell the tale for oil for the next four to six months, at least. The charts show that both the United States Oil Fund (NYSE:USO) and the Select Sector SPDR Energy ETF (NYSE:XLE), the first a proxy for crude, the second a measure of big cap oil producers and marketers, are presently at tipping points, moments in their investment trajectories that could just as easily bring them into a deep swan dives – bear markets the likes of which we haven’t seen in the oil patch for seven years – or pull them higher into rallies…

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Follow the Leader (HYG, FB)

We’ve got a hoard of trades to run down today, as last Friday’s options expiry ushered in a bevy of new results.  We start with our HYG trade from October. Sharpen your pencils and take out a fresh sheet of paper, ‘cause here we go… On the 27th of October we wrote a letter called Launch the Dirigibles! in which we urged you to consider buying a beaten-down junk bond sector. Specifically, we wrote – We say junk got smacked because an overly sensitive, Prozac-popping news-addicted investment community can’t see the big picture sufficiently to wait out these minor storms. Nor will they be sufficiently wise to get back in early enough to capitalize on…

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Leverage The Coming Pop and the Russell 1000

The recent burst to new highs on the major indexes – including the long awaited ALL-TIME breakout for the NASDAQ (which we’ll likely get today or tomorrow) – has been predicated on two important developments. The first is USD consolidation. Everyone was getting wobbly in the knee looking at the American greenback grow like a time lapse photo of an Oregon redwood. “When will it stop,” they shouted! “How can our exports compete!? If the buck keeps rising, corporate America will be dashed on the rocks! Thrown to the wolves! Crushed by Big Foot!” And like a child who yells loud enough for long enough, they got exactly what they wished for. The dollar backed off, as…

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Academic Trading Strategies (XLE, USO, XLF, FXU)

Did you ever wonder what university professors really do? Here’s an article that explains what most of these clowns are really up to. You’re not going to believe it. When they’re not writing treatises on “15th Century Sock Weaving Techniques of the Women of Argonne”, well-paid academicians are busy quantifying the likelihood of the world ending in this manner or that. You don’t believe me? Click here. Here’s a brief quote from the article for those who don’t have the time – “This is a scientific assessment about the possibility of oblivion, certainly, but even more it is a call for action based on the assumption that humanity is able to rise to challenges and…

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Bellybuttons and Zeroes (FXI ,XOM, XLE)

Before we start this week’s rant, let’s take a minute to close out a successful trade. It’s actually two successful trades that are one and the same. The first was opened on the 8th of December in a letter called Chinese Market Riddle – Solved! The second was launched just three weeks later in China Breakout Imminent. They both involved option sales on the iShares China Large-Cap ETF (NYSE:FXI) and the lowdown follows – There wasn’t a great deal of difference between the two trades – neither in our reason for initiating them nor in the technical setup surrounding them. But what’s happened since then indicates to us that we should pocket the great big…

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