Thursday, November 17, 2011

Jeffries (JEF) Collapse - Short Sell

We did not suspect JEF was close to failing; however, TV today has confirmed (while trying to anti-confirm) that JEF is truly in severe circumstances.

Always accept confirmations when they are as clear as this one.

Every slight interest-rate increase in the risky Euro-Zone nations translates into a larger loss in value of the underlying, i.e. junk bonds.

There are only two things JEF can do... lie about it (as in the previous short/long position TV-supported story - ha ha ha!) - or - go bankrupt.

Uggg. We did not understand until today. Short sell and allow 30 days or so.

AND... the obvious... Q: Since JEF has gone on record on TV to say it cannot lose any money in the Euro-Zone, then why is there any concern? A: Apparently because that was a ... well a... ah... kind of a ...ah... a lie.

Corp. Earnings not Bad this Time...?

US Corp. earnings are earnings in terms of US Dollars = USD = US $.

The USD has been severely deflated (devalued) on purpose by the FED with a little help from...

Please recalculate earnings to include (reverse-out) the decline in value of the USD.

You will find the corp. earnings are in fact world-class... i.e. world-class-xxxxty.

M-F- Global Financial Collapse... Again

Q: Why has it been so difficult to obtain, or even track, the money that "MFGlobal" defaulted upon?

A: Because it was funneled through so many other laundromats and middle-men that it's nearly impossible to find(!)

Q: Who's next besides B of A?

A: Another middle-man for B of A. B of A comes soon, but later.

Q: And Chase?

A: JP Morgan falls hard, unless Uncle Ben helps them, but not until after BAC.

Occupy Wall Street - Help for the River-Island

Congratulations to the occupants who put up with "Nixon era dirty tricks" today. We salute the calm organization of your movement.

Wall Street will shortly collapse by itself from its own unenlightened and frankly "simple" view of the world. Everyone appreciates the occupants helping to shed light on an otherwise unenlightened profession.

We stand with you.

We stand against the big bankers that have used your money and lost it in Europe like a bunch of simpletons.

Wednesday, November 16, 2011

EUR/USD Current Fibonaccis

There aren't too many levels yet to fall through... if any.

Maybe we fall directly to our channel bottom. So far, it looks that way.

Uggg (for the Euro we mean.) Very good for "us" so far.

Maintain the math and act accordingly. If it doesn't happen now, it will happen soon... (...er or later!)

Congratulations for beating the insti's. Pretty easy after all!

Fitch CYA on US Banks - TV Today - Rating Agency Exposure Again

TV says... "oh, dah, what a surprise... everyone knows banks are succeptible to the Euro/WW economy."

Huh??

The facts:

1. Banks are only immediately succeptible to the Euro/USD currency ratio because the big banks have risked your money and way too many USD in the Euro-Zone criminally while trying to get a higher and more greedy return-rate following the bank-caused 2008 US debacle that required tax-payer bailout.

2. TV and the institutions (insti's) that pay TV have been actively trying to hide the relation with the EUR/USD for months and years.

3. Now the relations are coming to light. Just ahead of the soon-to-come 2nd M...F... GLOBAL-FINANCIAL-COLLAPSE... again!

Letter to Clients - Huge PROFITS - Revealing this has NO Effect regarding Events

Strong Immediate Trading Opportunity


FINANCIALS (Financial Strategy)


The EUR/USD (Euro vs. the US $) will collapse. The entire Euro-Zone (17 nations) will collapse and rebuild itself nation-by-nation with Germany the first of two-to-three winners. Everybody else, and the Euro, loses. EUR/USD is traded on Forex (the worldwide currency exchange market-place.)

Because the US banks and other institutions have placed nearly all their capital into the Euro-Zone (following the 2008 US institutional collapse,) the EUR and USD (EUR/USD ratio traded on Forex) are also tied to anything that trades in USD, e.g. US Equities like NASDAQ, DJI, SP500, etc., OIL, most commodities, and also GOLD in USD.

Because the USD will rise significantly, all USD-traded entities will fall by closely the same %. The strategy is to act on these facts.

There is only one way to get around these events, i.e. the US FED would need to “print” USD to compensate for the Euro collapse so that the EUR/USD ratio remained manageable; however, that would cause worldwide currency DEFLATION (and of course worldwide price INFLATION.) It would cause the price of GOLD (as an alternative “commodity” to worldwide currencies) to sharply rise in USD value.


TRADING (Trading Tactics)


Immediately, make low-risk/high-reward trades (exactly as taught using derivatives like futures, calls and puts on US-traded equities, e.g. GLD = an ETF (exchange traded fund) for gold mining companies that tracks the price of GOLD, or even more directly GOLD futures… any of the above.

Make a minimum 3:1 trade (5+:1 is better) that GOLD will rise at the same time you make a similar reward/risk trade that US Equities, e.g. SPY (the Standard and Poors index fund) will fall.

You may succeed in both trades, you cannot fail in both trades, and most likely you will succeed at one trade and fail at the other. You don’t care, because your reward/risk is greater than 3:1 at a minimum for each trade. In other words, you cannot lose or even break even, you can only win.

In this way, we take advantage of worldwide financial events to make significant money at an extremely low risk.


TIMING (Trade Execution)


Start immediately prior to any catastrophic event. Fitch has warned of de-rating the credit worthiness of US Banks as of today. The massive slide is already in progress similar to 2008. The EUR/USD is falling in a technical pipe quickly even at the present time.

Trade expiration date must allow enough time for the events to unfold in the minds of traders and especially institutional traders. The more time you buy, the more certain the success; however, the reward/risk ratio and profit will be reduced as well.

The third Friday in Dec. (quadruple quarterly expiration) is a fair choice. Jan2012 expiration is also OK. Anything longer is unnecessary and too expensive.


RISK (Near Term Risk prior to Expiration)


News events from institutions and whole nations trying to prolong the disaster as far as possible are now clearly losing that battle.

Expect a counter-attack on the news front with a possible method to legitimately bolster the Euro without currency manipulation by the ECB (European Central Bank – the Euro version of the FED.)

There is NO chance of this happening, but the risk is that some institution with enough power can force a delay beyond your expiration date.

Dec/Jan should be acceptable expirations in this regard given the more rapid decline of the Euro and the fact that any near term US FED response can officially happen only at the early Dec. 2011 FOMC Meeting.