Posts Tagged ‘Futures Trading’

U.S. Court of Appeals 7th Circuit Puts Brokerage Accounts At Risk

Friday, August 17th, 2012

On Thursday, August 9th, 7th Circuit Appeals Court ruled on the lawsuit between Sentinel Management Group, Inc. and its customers. The ruling, awarded in favor of Sentinel, now puts brokerage accounts in the US at risk. (more…)

CFTC — PFGBest — Well — It’s About Time!

Sunday, July 15th, 2012

On Friday, 13th of July, the Commodity Futures Trading Commission (CFTC) finally approved financial rules submitted by the National Futures Association (NFA) to ensure customer funds held by Futures Commission Merchants (FCMs). What finally pushed the CFTC to file new protections? FCM firm, Peregrine Financial Group Inc. (PFGBest) declared bankruptcy after losing $215 million of customers segregated funds. Once again, the CFTC failed to protect futures traders. (more…)

Treasury’s International Capital Data Report Reveals All — Just Learn To Read It

Saturday, June 16th, 2012

Last Friday the Treasury Department released its April International Capital Data Report (TIC). Too bad this report is two months in the rears. If only this report came out monthly as so many others do. Because this report shows where the insiders are taking the Market. (more…)

Bernanke’s Testimony, Was It Just A Setup?

Sunday, June 10th, 2012

On Thursday Fed Chief Ben Bernanke delivered his testimony to Congress. Everyone sat on pins and needles waiting for what he would say. The pundits on CNBC were chanting QE, QE, QE. And then it happened…”No change in policy unless conditions deteriorate further.” The wait was over. “Great Expectations” unmet. No “QE”. To the Market, a great disappointment as it fell quickly. But hold on. Let’s go back a couple of days and look at the activities right before his testimony. Could this have been just a setup? (more…)

Technical Indicators…Are They All They Are Cracked Up To Be?

Saturday, May 26th, 2012

Ever wake up one day and say, “I want to become a “technical analyst” daytrader, someone who sits in front of the computer all day buying and selling shares of stock or options/futures contracts? Being a novice to trading, you bring up a technical chart, add a couple of indicators such as moving averages or MACD and say to yourself, “this is going to be easy,” as you count the money you’re going to walk away with, your dreams of wealth finally coming true. But within a few days, all your dreams come to an end, as you see your portfolio drained from loss after loss after loss. (more…)

$2 Billion JP Morgan / Jamie Dimon Trading Loss — No Problem It’s Counter-Trend Friday!

Sunday, May 13th, 2012

It’s 9:30am and the Market is about to open. JP Morgan is already down 7% on the news that they lost $2 Billion in market value and their credit ratings trashed as a result of their failed hedging strategy. Their “Teflon” image shattered. Jaime Dimon, Wall Street’s “Golden Boy” no more. You could hear investment attorneys all over New York sharpening their pencils, their eyes bulging with dollar signs ($$$$$) as they counted how much they would make on the investment failure. (more…)

Who Let The Cat Out Of The Bag?

Sunday, May 6th, 2012

Friday was affectionately known as “Unemployment Day”. All eyes were watching the 8:30am EST news release. It was unclear as to whether or not the report would be positive. Then it happened…albeit a bit too early. (more…)

The Ides Of May Could Be Upon Us

Saturday, April 21st, 2012

This week we saw the Dow’s price teeter totter up and down as we head towards May. When there was no news, the Dow sat and idled, without direction, extremely lackluster. When news struck, the Dow moved briskly, only to quickly forget that news and return to an idle state. Unlike the steep uphill rally in March, April has been a month of lackluster whipsaws. Does this forebode the “Ides of May”, when the old adage comes into play, “Sell in May and Go Away.” (more…)

Is It Structural or Is It Hysteresis?

Sunday, April 15th, 2012

Is It Structural or Is It Hysteresis?

Last Thursday, April 12th, the weekly unemployment claims report was released. The Number soared from 367k the week before to 380k, yet what had been forecast was a drop to 355k. What made this number so concerning was that, not only did the number rise, but that unemployment claims are based upon the prior week, and the prior week was Good Friday when government offices were closed. That meant that the number was based on 4 work days not 5. At this point, the question becomes, is unemployment now structural or is it still a result of the 2008 recession (hysteresis). (more…)

The Feds “All In” Poker Monetary Policy

Sunday, April 8th, 2012

Access to money at a reasonable interest rate is what businesses and consumers have come to rely on to spur the economy. For this purpose, the Feds have lowered interest rates to bargain basement levels, hoping that this will serve as a catalyst for the country’s lethargic business investment/hiring. By reducing borrowing costs for machinery and equipment, the Feds assume that new factories will be built, more stores opened and apartment buildings constructed, all leading to additional employment. Short-term reduction of interest rates as a stimulus to business spending is normal operating procedure for the Feds. But when interest rates hover at nearly zero for long-term, there are “unintended” side affects that do not benefit all. (more…)