Posts Tagged ‘trading futures’

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…)

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…)

Quantitative Easing — To Be Or Not To Be

Saturday, March 31st, 2012

This last week we saw the coming and going of Quantitative Easing 3. The age old Hamlet soliloquy, circa 2012, “To be or not to be — that is the question,” became the daily mantra. Shakespeare would have been pleased to watch the play unfold. (more…)

Collateral Damage — Welcome To Trading 2012

Thursday, March 22nd, 2012

In the film, Collateral Damage, a bomb is detonated killing 9 people in the Colombian Consulate building plaza in Los Angeles. Among those killed are the wife and son of LAFD firefighter, Gordon Brewer (Arnold Schwarzenegger). They just happen to be in the wrong place at the wrong time. They were collateral damage, incidental to the intended target during the attack. Today, trading has become a similar war zone, with retail buyers and sellers being offered up as sacrificial collateral. (more…)