I love it when a plan comes together. After many, many false starts and even falser head-fakes, we finally got the dip we've been playing for. No big deal so far, just a bit below our 2.5% lines and we'll see if they can be taken back this morning at:
- Dow - 15,250
- S&P – 1,667
- Nasdaq – 3,607
- NYSE – 9,450
- Russell – 1,033
As I noted in Member Chat this morning, the NYSE is keeping us from getting much more bearsih as it finished 39 points (1.1%) over the line and it's right on our -5% support so we're keeping the faith that this is just a minor pullback and not the start of a major correction, though we won't know for sure until next week as today is options expiration day and you can't trust anything that happens today.
We've been having fun with our oil trades and, this morning, we're back at $107.50, which is our new favorite shorting line (was $106.50 but we backed off this week) and we had a detailed discussion about Futures Trading Strategies in our Member Chat this morning – very good reading, along with our usual news rundown and market overview. Thanks to some very cheap (and even negative) rolling costs this week, the NYMEX crooks have already shifted most of their FAKE September orders to FAKE October orders:
Click for
Chart
Current Session
Prior Day
Opt's
Open High Low Last Time Set Chg Vol Set Op Int
Sep'13
107.18
107.57
107.03
107.43
07:04
Aug 16
-
Oct'13
107.01
107.37
106.80
107.19
07:04
Aug 16
-
-
Nov'13
105.98
106.25
105.73
106.06
07:04
Aug 16
-
Dec'13
104.57
104.86
104.29
104.66
07:04
Aug 16
-
Now there are 321,000,000 barrels "demanded" for October delivery but, if we take the WayBack Machine (copyright Mr. Peabody) to July 22nd, we had 387,000 open contracts for Sept, 131,000 in Oct, 83,000 in Nov and 204,000 in December for a total of 805,000,000 barrels worth of completely FAKE demand for oil (which forces you to pay REAL high prices) and now we have, drumroll please – 811,000,000 barrels of completely FAKE demand for oil. They just shuffle it around every month!
I don't know how I can make this more obvious – it's a complete and utter scam. The people trading oil contracts at the NYMEX have ABSOLUTELY NO INTEREST IN EVER BUYING ANY ACTUAL OIL – it is a complete and utter scam, run for the sole purpose of creating a false demand for the 2nd most plentiful liquid on the planet so they can gouge consumers and milk the American people (the World's 2nd largest producer of oil) out of hundreds of Billions of Dollars a year.
You can write your Congressman to complain. Just tell them to give me a call, I'll be happy to walk them through this charade – and I'll even teach them how to make money betting on it! Or we can put a stop to it. Of course, the oil markets aren't the only scam in the World. Back in June, I had a falling out with Seeking Alpha, in part over their questionable policy of promoting small cap stock over regular ones. This makes it possible (giving SA the benefit of the doubt that they don't do this intentionally for the kickback money) for some of their 7,000 authors to mislead readers with factless attacks or pumps of small companies with the sole aim of manipulating the stock price for their shadowy backers.
Let's add 1,000 shares of WH at $1.80 to the STP with a plan on doubling down and tossing it into the LTP if they fall below $1.20 on bad news. If no bad news, $1.50 is where they were trading pre-merger so, if they merger does fail – they'll probably end up there again over time.
IN PROGRESS