FREEWHEELIN’! (DIA,VOX,XLK,XLF,XLF)

FREEWHEELIN’! (DIA,VOX,XLK,XLF,XLF)   We didn’t create the world we live in, but we inherited it, and that leaves us with just two choices with which to deal with it.   On the one hand, we can opt out.  We can attempt to move away from the reality that exists and forge something new, perhaps with like-minded individuals, or alone if need be.  We may even be able to do it where we’re presently situated – there may be no reason to relocate whatsoever.   The other option is to work with what we’re given and attempt to make the best of a sorry or compromised, or even downright miserable predicament.   And so it is,…

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Confusion, Lies, and the Trades They Inspire (CAT,AAPL,KSS,XLK,IYH)

Confusion, Lies, and the Trades They Inspire (CAT,AAPL,KSS,XLK,IYH)   A good number of the folk you meet on a daily basis are whacked.  But it’s important to know that there are actually several types of whackos out there, including two that are regularly confused with one another.  In truth, they suffer from distinctly different maladies.   On the one hand, you have the confused individual.  He’s raised in a milieu of half-truths, modern statist brainwashing and outright lunacy and simply doesn’t know any better.  He therefore spouts his nonsense with conviction because it’s all he knows, and it’s well-nigh impossible for him to get outside the box that was built for him. He suffers for…

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We’re All Gonna Die! (XLK,GM,F)

We’re All Gonna Die! (XLK,GM,F)   Just a moment to recap exactly where we are and how we got here.   To begin, our bull market began in March, 2009 and, despite the odd shimmy and shake, it continues apace, spurred ever higher by the machinations of a giddy central bank that refuses to take bear for an answer. This past fall, with the election of Snidely Whiplash, the market kicked into overdrive, beginning what we believe is the final blowoff top to the bull that began in either 2009, 1981 or 1933, depending upon how cataclysmic your worldview.   But that’s for another time.   Today, we find ourselves at a crossroads.  Not 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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Volume Precedes Price (PIR,XLK,KBE)

Volume Precedes Price (PIR,XLK,KBE)   It’s axiomatic among market technicians that volume is the key ingredient behind price changes.  On the one hand, it’s a purely economic equation, the greater the demand for an item, the higher it’s price will move, given a static supply.  Conversely, when demand dries up, prices should be expected to fall, or stop rising, at least, as the catalyst for their advancing in the first place has now been removed.   But does that always translate in the world of equity trading?  And how can the volume action on a stock or sector, or in the overall market, help us to make better trading decisions? Glad to have you.  …

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Run for your life! Inflation! INFLATION! (VOX,XLK,SPY)

We’ve discussed it numerous times over the last five years, and it finally appears to be coming to pass. We’re referring, of course, to the ongoing efforts of the U.S. central bank (and others, most notably the European, Chinese, and Japanese CBs) along with our Treasury Department to coordinate a financial reality whereby inflation puts her evil stepsister, deflation, into a merciless choke hold.   And to that end, we’ve seen all manner of ZIRPs and JERKs and QEs (not to mention out-and-out buying of stocks and bonds), all orchestrated to get banks to start lending and Joe Q. Public to start spending.   Why?   Because it cannot be that the economy is left…

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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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Spot the Wise-Guy (KBE,XLK)

We’re going to lead off today with a bit of a quiz.   We want to see a) who can spot the investing ‘wise guy’, and b) in so doing, declare himself an investing ‘wise-guy’ himself.   So we’ll start with this –   It came to our attention yesterday that Atlanta investment powerhouse Invesco had looked into the matter of central bank equity purchases and came away with the following, stunning data.   Consider –   Compared with last year, twelve out of fourteen of the world’s largest central banks responded that they were planning to significantly INCREASE their investments in both equities and corporate debt issues in 2017, the former by as much…

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Contrarian Sentiment Bullgasm (SPY,TLT,AAPL,TLT,XLK,DB)

These are our kind of headlines – It’s not often we get a splash of copy that includes the likes of the above on just a single perusal of the news galaxy, but that’s exactly what happened when we powered on yesterday.   And we’re pink-tickle drunk over it.   Why?   Simple.  The Iron Law of Investor Certitude (ILIC) makes it perfectly clear that –   The stock market is a machine that is built, maintained and finely tuned for the express purpose of separating Joe Average Investor from his life savings.   It therefore follows that if no one is invested, there’s no such separation of savings to be had.   That being…

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