Short NVDA - Insiders Selling Sharply

This has been a great signal for nvda in the past. Insiders are unloading. Short this stock. Management knows the stock is a big loser.

ECB to Print Money - will use EIB as Vehicle to Deflate Euro

A huge default by any other word is still a huge default.

We will see if we can capture some upside on the story, then immediately short the euro against everything.

We would all hate to be Germans right now. What a way to get screwed. Your own politicians.

Brilliant Move by Ben Bernanke and 7/10 Fed Committee Members

Finally, a plan that frontally-attacks bank profits in order to help the worldwide economy.

Flatten the yield curve and support MBS! Should have been done in 2008/2009.

The banks have two choices now: 1) go out of business, probably prior to mid 2013 or so, or 2) lend money with Fed support for home buyers and refinancers.

A brilliant "force majeure/major" or however it's said in French!

Maybe Ben read our recent post proving the math about the prior yield curve!!!!!

Wall Street Fraud - Profit from the Game!

At almost exactly 2PM Eastern US Time today, there was an instant market shake-up as described in our previous post today. It happened exactly at the same time a news-release was floated about 16 European banks. The release originated in Europe.

Some quick geography tells us that 2PM on Wall Street was very late evening anywhere in Europe; however, the US markets were still struggling for two additional hours in a very volitile day. A hugely "down" day. But one of those hard working folks in Europe was in-fact working late to "release" the news event at that precise time of the Wall Street day.

That's probably why the Euro will be valuable forever... because Europeans in general and on the average are arduous work-ethic oriented high-productivity individuals...

Think about this one. Sometimes you may have experienced a "broker" call prompting you do act under certain conditions because it was a good day to do so. Then, the condition happened(!) with enough time for you to confirm your buy order for that day(!!) Enough people listening to that story can produce enough "authorized" volume for the quants to be turned on.

Of course, those folks who were phone-called get wiped out in a day or so, but the quants have already acted on the accumulated volume.

You can profit by reacting in the exact opposite direction once you know how to avoid the scam.

fed operation twist and the euro/us_dollar spike today - 16 euro banks

No surprise from the large market drop today. If this was a surprise to you, you need to read our prior blog entries. If you understand the market situation, you should have made lots of $ today.

The best way to understand is from the "quant" large % upward shift in the US markets today after the European "announcement" about the 16 banks. There are two ways to understand:

First, the currency markets (all stock trades are nothing more than currency trades for now) involve people who react to news and help to set currency valuations. Computers cannot do this, only people with a limited reaction time. A quick education in Forex will help you with this.

Once a person reacts, even mistakenly, to a news event, then sometimes the computers/algorithms take over quickly to trade... just like today's 100 point (Dow) upward mid-day move in all the major US indices simultaneouly followed by a nearly-immediate drop of the same magnitude(!)

A European "report" was mistaken to read that 16 banks had increased capitalization while the report in fact stated that 16 banks were failing stress tests and needed to raise capital (very bad news.)

Enough said about the quants (massive machine trading from algorithms) for now.

Second and the most important, take a look at the next post.

Dissolving the Euro

Germany is so excited about sending money to help Southern Europe that it in fact tried to get a court decision to declare the act unconstitutional.

That didn't work because of a legal technicality.

Hurrah!... now the Germans are onboard, or ah ... ah...

If you want to act stupidly, then we cannot help you.

Best way to make money in Silicon Valley NOW - NVDA

Buy NVDA.

Let it rise on nothing but the usual rhetoric about how good things look into the future, then just follow the charts.

Short it when you see the retailers lose steam in the rusty engine room.

We nearly doubled our earnings from playing this stock in January/February 2011.

Don't get left out from Silicon Valley opportunites!

US and European Banks and Sovereigns - what are these anyway?

Some straight forward common sense definitions:

1. A bank is a large bunch of folks that take deposits from ordinary people, pay the ordinary people a small interest in return, then make a higher return from the massed deposits/capital. Or... that's what the idea was a long time ago. Now the banks are losing your money instead of making more. This is not a good plan for you, only for the bank officers and owners.

2. A sovereign is some nation, like Greece or Italy for example, that pays its citizens lots of money; however, the soverigns take in less money than they receive. This is called deficit spending in the beginning and later it's called simple default, i.e. the sovereign does not plan to pay its debts.

3. When you or I don't pay off a loan, we are said to have defaulted and our bank-originated "credit score" decreases. When a bank defaults, it's called a quantitative easing mistake and everybody in the bank gets paid off for the so-called tax-payer mistake of not "supporting" the bank.

In 2008, the US tax payers paid the banks lots of money so that the banks wouldn't completely collapse. Some of that money has been repaid.

We have even a worse problem with the "banks" now in 2011. You need to remove your money from banks, put it in a secret hole in your back yard, and your money will be much more safe and will earn much more real-interest than the negative-interest the bank will pay you.

Do not get fooled again.

Nationalization of US Banks

Let's just get it over with before the whole planet collapses.

1. The US banks caused the worldwide credit collapse.
2. Now they complain about regulations. Huh?
3. They threaten the planet again based on their clandestine seek for earnings by their tie to the Euro.
4. They have no capital to handle their extreme real estate losses.
5. Just close them down, let the bankers and bank owners suffer, and save the rest of the world.
6. What on Earth is wrong with that?
7. There is no other way out.

If we sell the banks and buy everything else, then we are winners and the banks are losers. No problem.

World Wide Massive Inflation Starting with Uncle Ben

It's possible the US Fed could print enough money to make every US dollar worth exactly 25 cents. In that way, all that metal coin that has no use now could get used after all!

But, all US cash would be worthless then. So would the rest of the planet.

The good part? The debt would be paid off in US dollars (1 dollar for every 4 dollars of debt, ha ha.) Probably Europe would follow suit, or even beat the US to it, and all the Euro debt would be paid off by a single printing press.

That could be the brave new world, but it would take a little time... exactly how much time?

We know and understand. Gold will not save you but other hedges will. Best wishes and be careful out there.