?You have to be very careful giving up analogue dollars for digital pennies,? said Jeff Zuker, CEO of NBC.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
Global Market Comments
December 11, 2014
Fiat Lux
Featured Trade:
(OIL GRINCH KO?S CHRISTMAS RALLY),
(SPY), (OXY), (XOM), (SCTY), (FSLR), (VSLR), (XLK), (BBH),
(TESTIMONIAL),
(AN EVENING WITH CONGRESS BARNEY FRANK)
SPDR S&P 500 ETF (SPY)
Occidental Petroleum Corporation (OXY)
Exxon Mobil Corporation (XOM)
SolarCity Corporation (SCTY)
First Solar, Inc. (FSLR)
Vivint Solar, Inc. (VSLR)
Technology Select Sector SPDR ETF (XLK)
Market Vectors Biotech ETF (BBH)
The continuing collapse in oil prices has finally spilled over into the real world, at its worst knocking 290 points off of the Dow Average yesterday.
Traders who grew accustomed to a market that went up like clockwork every day were in for a rude awakening. Is the positive case for equities coming to an end?
Is the bull dead?
Not yet. All we are seeing is a normal 5%-7% correction in a long-term uptrend. It?s really all about the numbers, as it always is.
American companies are still on tract to increase earnings by 10% in 2015, and S&P 500 earnings are set to reach $130. Technology and innovation are hyper accelerating. Our energy costs have been cut in half, creating a giant tax cut. The world still wants to send its money here.
Goldilocks is still alive and well, just momentarily hiding under the bed.
Yes, it?s another buying opportunity.
This time, however, it?s different.
Oil has gone down so fast, some $46, or 43% in a scant six months that it has set the cat among the pigeons within the producing countries. The decline has been so precipitous that the budgets of oil producing countries from Saudi Arabia, to Russia, to Norway, have taken a real walloping. What else would you expect when your principal revenue source suddenly halves?
The plunge caught the producers totally by surprise. So to meet budget shortfalls, they are having to raise cash from their sovereign wealth funds. Some 15 of the world?s 20 largest sovereign wealth funds are run by oil producing countries.
To raise money, they are having to sell off investments, primarily stocks, and especially energy stocks. That is one of the few industries they actually understand.
This all means that the selling should dry up going into yearend, once budgetary requirements are met. If the price of oil stabilizes here at $61, or heaven forbid, starts to rise, then their selling of stocks completely ceases.
The bull market returns.
After suffering through a Trade Alert drought that has lasted more than a month, there are finally some nice trades setting up. I?m thinking specifically about the S&P 500 (SPY), energy (OXY), (XOM) and Solar stocks (SCTY), (FSLR), (VSLR), and even a chance to get back into the front-runners, technology (XLK) and biotech (BBH). Europe is also finally starting to look enticing.
Watch this space.
![Goldilocks]()
Goldilocks is Still Alive and Well
Just want to let you know that I have had some great trades with you this year. I made the most money on (FXE), with (IWM) in second place. (IBM) was in third place - with one trade from you and comments from Jim Parker.
I've found that when Jim says a stock has hit bottom it's usually a good time to buy, even if he doesn't send out a Trade Alert. You were right when you said we can make more money waiting for a few good trades instead of overtrading.
Most of the money I lost this year was from my own mistakes - overtrading, not stopping out and waiting too long to take profits. My intention was to do only what you said, but the market is very tempting.
After looking back on my trades this year, I'm thinking I should reconsider and sign up for Jim's service again. It doesn't take many trades to pay for the service, even if I can't keep up with it all the time. And I learn a lot from him too.
I expect 2015 to be a great year! Safe travels over the holidays!
Susanna
Orlando, Florida
?I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.? said oracle of Omaha, Warren Buffett.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
Global Market Comments
December 10, 2014
Fiat Lux
Featured Trade:
(UPDATE ON LINN ENERGY), (LINE),
(THE MYSTERY OF THE MISSING $100 BILLION), (TLT),
(MY FAVORITE SECRET ECONOMIC INDICATOR)
Linn Energy, LLC (LINE)
iShares 20+ Year Treasury Bond (TLT)