Tuesday Jan 14, 2013
Second Day of Maui ’14
1-(855)–RWT-0008
Dow Closed Down 179.11 at 16,257.94
A day that started out slow picked up steam and fell continuously.
The anal-cysts are attributing the selling to “trader’s concerns over weak job numbers and further reduction in Fed stimulus”. Yet those concerns should have taken place on Friday (if they were right) when the latest job numbers were released.
Also it appears that Goldman sold a bunch of S&P futures on Friday, so they released a report yesterday saying that the markets are “lofty by any measure”.God I wish I could get away with front running the public like they do. This is more likely the real culprit, and I hope Goldman gets hosed on a short squeeze.
AAPL closed u; 2.79 at 535.73.
The stock was up almost $10 at one point, but kept falling as the markets decline. It shows the power of systematic risk.
The VIX closed up 1.14 at 13.28
After being as low as 11.82 on the day the market falling caused the VIX to finally show signs of life again.
I thought we sold this yesterday but I was mistaken. It was a different TOS account order I heard go off while teaching the Maui class. In other words, I am still working this for POT.
The TLT closed up 0.52 at 104.93 after Friday’s job numbers had traders thinking that the Fed’s further tapering might be put on hold.
Metals actually had an up day.
GLD = 121.02 up 0.76
SLV = 19.68 up 0.30
Remember what I wrote 2 -3 weeks ago about record short positions in gold being bullish.
Tesla was slammed down $6.38 at 139.34 yesterday.
POT people, I am hoping for a little more selling today in the market and TESLA before jumping in, just like I am hoping for more buying in the TLT.
HALO 15.55 down 0.89.
This stock was as high as 16.58 before the market falling dragged it down as well. I was a tad concerned as we are short the 17-18 call spread (against the long 14-15 spread) I felt was safe. With 4 days remaining the stock at 16.58 had me concerned.
We have on the 14-15 / 17-18 condor on for free in here 30 times that expires on Friday.
Yesterday
Started out like any other day, but I suspect this was manipulation done by Goldman. Why would a broker, someone who gets most of their customer accounts from bullish transactions, say that the market is over valued unless they wanted the market to sell off?
Today
Retail sales and business inventories will be looked at with more detail than it would normally after Friday’s jobless numbers and concerns about the economy possibly weakening again. Actually I don’t think anything has changed but the numbers are just reflecting reality. They were manipulated and not counting a lot of under employed people who are not out spending and strengthening the economy.
This is the real weak recovery that trillions have been spent on fixing in the wrong way. $4 + trillion and nothing to show for it. If the government just gave Americans a $4 trillion refund on the taxes we have paid in, instead of the so called “shovel ready projects” supposedly done, things would be different. Give my ex wife her share and she will stimulate the hell out of the economy.
But in reality my dog has created more shovel ready projects than the government.
And this is what I thought would cause the HUGE market drop of >15% that I have been talking about for 6-8 months. Perhaps we will get some follow through today towards 16,000 before going higher again, and then falling hard. We shall see.
PLEA
Please tell someone you know that they do not have to be a victim in the government created stock market bubble. I don’t care where they learn to hedge from. Send them somewhere else if you like. Buy them our BASICS book for Christmas. Buy them someone else book But help a friend out.
Back to the regular schedule.
POT is held each Wednesday night at 7:00pm eastern.
Contract the office at 1- 855 – RWT – 0008 for more details.
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