Morning Update: June 17, 2014

1-855-RWT-0008

Random Walk’s Motto:

Success through integrity and care. The law of abundance means we can all win.

The big mover today was TSLA. Shares were up 8.81% after they announced they would share their patents with BMW and other companies. As I mentioned in a previous update, TSLA is going to make its money on battery technology, not cars. They will be happy to let other companies use the battery that BMW and others have to pay for.

POT people….in the event you missed what the purpose of today was….

We bought a $5 spread in the stock and went for a ride. Once the stock was up $13 I sold the inside of the $5 spread, turning it into a $2.50 spread that is remaining. The trade was done for a credit of $0.15. Because of the speed by which the stock climbed, I got a better price on the sale than I intended. One minute the stock was up 12, and then 13. The next minute it was up 18. Sometimes you are the bug (APPL last week) and sometimes you are the windshield (TSLA today). 

Yesterday

The markets gyrated from down 50 (Dow) to up 26 points, only to close up 5. This is typical stock market movement based on what is going on politically (Iraq). If another President was in office we would likely be down 200-300 points on fear of going to war, but with the current Administration the markets are not concerned about a war.

Drone Cop, ak.a. President Obama is seen as very unlikely to help out Iraq in any way, and would rather see terrorist cells take over a country we fought 2 wars over to (supposedly) keep terrorists out of.

News was announced that the Da Prez is going to send 275 soldiers over, but that is strictly to protect the Embassy. It appears his advisers reminded him that 2 attacks in his tenure of an American Embassy because of a movie would be damaging to his historical standing. Small problem with this. 275 soldiers can take over a city like Detroit, but this is Baghdad where ISIS has thousands (and growing) of personal, $500 million in cash (it took from a bank), and US military equipment (which is apparently relatively easy to steal).

Now all the President has to do to ensure safety in the region is to make sure no theaters are playing movies and all will be quiet in Baghdad.

Quick question?

What happens when you pull your finger out of a bucket of slimy, stagnant, infectious water?

Answer!

It is immediately replaced. When we pulled our troops out of Iraq before the cake was done, we were replaced. Replaced not by cake, but ISIS. 

Today

Most likely more of the same as today.

With the wait and see approach the markets are likely going to be hesitant to do anything. Again, if this were Ronald Ray-gun in the White House the markets would not be stable, but falling 300 points because they knew someone was getting bombed back to the Paleolithic era. Then again, if Ronald Ray-gun were president, ISIS would know this and NOT attempt to take control of Iraq. Then again, if we just left Saddam in control he would have perfect order and perfect executions every day. Now the whole region is a going up for grabs.

FUTURE:

This is where the next big fall could come from. Not today, but in weeks.

Iran is in Iraq in order to “help”. Remember the little thing called the “Iran – Iraq War”? These people hate each other, and I am sure Iran is just pissed off that ISIS though of this before them. The region was a mess to start with, but a semi-organized mess with rules. It is going to the wild west style of living now.

Getting into Iran was stupid (in hindsight). Getting out of Iraq was proof that American’s can never let war be trusted to politicians – especially ones that have never been in the military.

This thing is going to keep escalating, especially since we have let the whole world know ahead of time that we are not going to do anything except maybe some drone attacks and beef up the embassy. This empowers other would-be tyrants to feel confident we are not going to do anything (which is true with this administration). Kennedy (one of my heroes) was a sissy with the military (Bay of Pigs), but he was bright enough to bluff (quarantine of Cuba). He certainly didn’t get on TV telling everyone, “We are doing nothing, so do what you want”.

So this escalation that is almost destined to happen will cost a price (much greater price than contrition) later on. Instead of hundreds of American lives, I am afraid it will be tens of thousands and escalated terrorist attacks. I am sincerely fearful that our ineptness and complacency is an invitation to terrorists since we release them from holding cells the first time they capture a defecting US soldier who has gone AWOL. And now ISIS as half a BILLION dollars which can bribe many people to perform heinous acts better than just the muzzle of an AK.

And since the VA is broken, I am saddened for the US soldiers caught up in this impotent mess. Or, as James Woosley, former Director of the CIA said today”.

“We are in a situation that has been contrived by President Obama.

The US looks between hesitant and incompetent “

R. James Woosely – former Director of the CIA

Speaking to the media today.

POT is held each Wednesday night at 7:00pm eastern.

Kaboom…Finally hit a nice triple. Long TSLA CIS and bought call spreads before the stock was up more than a couple of dollars. No leaping tall buildings in a single bound for me. This was more luck than anything. 

Contact the office at 1- 855 – RWT – 0008 for more details. 

POT PEOPLE….remember me telling you this (Sony v MSFT)? I am defending my son’s opinion when I say “He was right”. Sony is going to gain ground from here too. 

Too True To Be Funny

These weather people never get anything right. I see no “earthquake” image in her daily forecast.

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Finally. Like pot, now lying in politics is legal, just not enforced. 

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GOOD…Now I don’t have to run the risk of sitting next to that Alzheimer’s patient. Especially when I pay for my seat, and for his (as a taxpayer). 

Attorney Stuff

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