POTC is fired-up as Q3 nears; welcome back to all subscribers and loyal readers since '08.
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The S/P index is trading inside very politically charged waters as related to Federal Reserve Bank actions of more monetary stimulus, the 57th U.S. quadrennial Presidential election on Tuesday, November 6, and a questionable fundamental backdrop as many large corporations have lowered expectations. Yet from a technical standpoint stocks could go higher as long as 1,420 holds. If we break below 1,420 that would signal lower prices for most stocks.
But it is a market of stocks for us aggressive traders and not merely a stock market, so we must identify individual business models/stocks that will shrug broad market volatility and be profitable. POTC's goal is two pronged:
1.) Education
2.) Profitability
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Though Capitalist Pig Bob has no conspiracy DNA in his bone marrow, he is a realist and worries that History will rhyme as it relates to Israel and the Jews if we just sit idly by.
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The ongoing atrocities against the people in the Middle East are wicked. No human being should have to endure what is occurring across the Middle East today, 99% rooted in reasons of poor socioeconomic conditions butt nonetheless blamed on religion. Most wars are birthed out of economic reasons and too often blamed on religion(s). Sad.
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This is an intellectual debate Pig Bob will not fight here butt it is frustrating to watch the spinelessness of the current Secretary of State Clinton jeering (click for video) after Gaddafi was sodomized and killed in the middle of a street, then denying it was terrorism that ended the life of U.S. ambassador Chris Stevens that was working in the same country, Libya.
Navy Seal Tyrone Woods (R.I.P.) must never be forgotten for his ultimate bravery. Please teach your children his story of valor and patriotism.
I do not think it is moral to cheer any man's death, maybe Clinton would take back her behavior and words back if she considered these eerily similar bloody images and possible retribution by some masses:?
October, 2011 Gaddafi paraded through the streets of Libya:
September, 2012 Stevens paraded through the streets of Libya:
Strictly a coincidence you say?, I say no. Though blaming the Secretary of State for ambassador Stevens' death is wrong, her behavior of cheering a brutal dictator's public death was ignorant and unprofessional. You do not spike the ball when you know we still have many good men like ambassadors and soldiers in harms way.
And after all this it is perfectly fine to have Iran's Ahmadinejad speak in New York city while he continues to deny the massacre of Jews and Poles by German Nazis in WWII as the brilliant man that is Israel's Netanyahu warns that his nuclear ambitions are Evil.
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I think the U.S. must take corrective action regarding the 1st Amendment as it applies to Evil dictators speaking on U.S. soil ASAP, especially if they were 'elected' through fraudulent fixing and means and publicly say a certain religion or nation must be wiped into the Sea as Ahmadinejad does.
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Why give Iran and Ahmadinejad a platform but not Cuba and Fidel Castro. As twisted as Castro's communist ways are, he has surely been more successful at communism than the last few U.S. presidents have been at installing the foundation for long-term Liberty & Freedom.
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The fact that Western central bankers are maniacally yet 'successfully' keeping interest rates capped at zero while many S/P cos are yielding 200%+ over the 10-Yr Note is mathematical reason for this bullish run.
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Equity Risk Premium (ERP) is the traditional metric Wall Street money manager uses to decide whether to buy stocks or bonds from day to day, and today it makes little mathematical sense to choose Govt bonds over stocks as the ERP is above 8%. Hence we experienced this explainable rally from S/P 1,040 when QE began in October of 2010 to today's 1,447 level.
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This 400+ point, post 1st QE, S /P rally has come as the U.S. labor force corporate sales, earnings, and GDP are all in either contraction or highly suspicious modes. And stabilization is the scariest reference the bulls use as so many uncertainties are just ahead of us while the Govt has ballooned. We are experiencing a helium laughing gas musical chairs economy, circus like, yet the U.S. masses watch the upheavals in Europe and then switch channels to some reality Housewife show where the women act like men and the plastic surgeries and BOTOX treatments have disfigured any beauty they had.
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If you think the masses will continue to behave this way, and we do, consider Allergan as a long-term hold, ticker AGN on the NYSE. The co is big into BOTOX and breast implants. AGN is only beginning to penetrate Asia, and you think Asians are less into vanity than Americans? In our opinion, AGN is positioned for phenomenal long-term growth is all other macro factors remain equal. You should always check with your Financial Advisor before acting on any stock or option information.
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POTC is not a licensed Broker Dealer and the information we provide is solely for educational purposes. And we charge a subscription fee because we have Industry experience at Morgan Stanley and other firms and work 20+ hour days during earnings season to send you aggressive Trade Alerts.
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From a Debt to GDP standpoint, Americans are circling the chairs and waiting for the music to stop like it has for many in Euroland. We sympathize with our conservative European partners big time, but we denounce all big Govt and Collectivist policies installed after WWII. Yet the current U.S. path is no different, definitely a vicious cycle that was bound to occur. We believe the more serious distribution of wealth continues to ebb from West to East.
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The East is kicking the West's behind and it has a lot to do with their greater tilt toward Darwinian Capitalism. Though the Chinese and Indian economies are far from perfect, they paradoxically enjoy more business start-up freedoms than the current policies in the U.S.A. offer. Obsolete Union thinking and minimum wage laws, unemployment benefits, and now Govt bailouts of banks are at the root of our current Collectivist state.
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Have you considered that Govt wealth is switching to bailed-out corporations like JPMorgan (JPM) while Govt influence, regulations, and power is accelerating? And it's an unfortunate fact that many of these corporate and Govt players are connected through lobbyists and a revolving door from Govt to corporate and vice verse.
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The best argument that stocks continue to go higher regardless of the Fiscal Cliff is that publicly run cos will be the 'safest' store; until and if some horrible 9/11 left field event strikes Chicago, Los Angeles, or New York. Then the power would pivot back to the printing presses of Big Brother, Oy Vey. And more masses would wake-up and discredit FDR and W, one old political Collectivist actor and the other newer on the scene.
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As for the current White House Occupier in Pig Bob's opinion, he has already completely and utterly discredited himself as a hater of private sector success and believer that Govt should be Policing our Daily Bread. No way does POTC feel this is fair after so many American boys and girls gave their lives through the years. You wonder how many would demand their service back after witnessing the latest big Govt crap.
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Some appointed officials like Holder and connected thugs like rotten Jonny Corzine do as they please with no accountability to anyone. If it were up to Pig Bob, public pay-per-view caning would be in order in lower Manhattan, NY. 5th Amendment junkies like Corzine deserve caning.
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The only glimmer of hope is a good amount of commercial real estate and some residential geographies home prices are off the respirator and attempting their first steps down the hallway of the Govt ICU unit; still a terrifying condition.
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'We're Only in it for the Money',
'I am Fat Money'
Get Psyched about Q3, beginning in October.
