I was thinking about the profits that GS, JPM and even C are making in the i-Bank divisions (investment banking) and I just had to laugh. Their recorded profits are based solely on trading activity. This trading activity was/is financed largely by the tax payer - thorugh bail-outs and a variety of "critical programs to prevent economic collapse". The banks pay 0% interest to use the money, and yet they don't lend a dime of it to main street. Rather, they use the back stacks and their program trading to rob the retail investor and eat the slow moving funds alive(your mutual funds, 401K, pensions, etc.). This is kind of a double dip into your wallet. In return, we reward them by buying their shares (as the insiders bail at higher prices) and all the shares they recommend (as they rotate out and start to position short). We are such a good herd of sheep!
Hey, good thing Obama won't tolerate any Wall Street non-sense. How big is his GS bonus anyway?
I'll hit the technical analysis later tonight - we are getting close to the end here.
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David, really enjoy your site/comments. I am a very new to the world of TA, and I am trying to look at volume and price action. I mostly trade crude and Natty. Looking at the 30 min one week chart for Natty, I see every peak volume is down for the last five days, and four of those days closing volume is down. Is there TA significance to this? Thanks very much for the nightly TA lessons.
Clarification, I did not mean that volume was down, but the price action during that period was down as volume peaked.
Hey Robert,
Thanks for your comments.
The nice thing about TA is that you can apply it to any equity, commodity, currency, or traded instrument. So long as there is supply, demand and willing participants.
Generally speaking if price is down (or up) on high volume, it should be considered "significant" - meaning you should examine the event closely in the context of trend and price level. Now, high volume means 2 or 3 times the average. Also, look to see if there is a divergence between volume and price. Meaning, over time, is price rising while volume is sinking? Is volume steady? Is volume rising with the down trend in price?
Volume by itself is not a reliable indicator. Keep in mind that there are technicians out there who discount volume entirely. Point and Figure chartist don't care about volume or time - just price levels and trend.
Thanks for your posts!
Thanks David
David , I enjoyed you comments on the " You have to Laugh " what else can you do.
I will add one to it , they take the money for nothing from the Fed, buy treasury bonds with it. No risk all reward, this keeps rates artificially low , I am so glad that we are not monetizing the debt.
Or JPM s loan to California at 3%, Called a private solution,
( with newly printed money from the Fed)
like calling China is the land of the free.
They are all GSAs
Gs does know how to pick a winner like the last presidential election , via politico , thew packs they where the biggest doner to Hillary, Obama and McCain , now that is non-change we can believe in .
From one sheep to another....
Best of Luck out there .
Hey Payline,
How much longer can our government persue such policies? Slowly but surely, the average American is growing deeply concerned about the debt, lack of progress on employment, falling home prices and stories of huge bank bonuses.
This is a wall street recovery - not an economic recovery. It is a time management game and I am concerned that time is running out. I would trade my short positions (with deep losses) in a heartbeat for a true recovery.
Though I am not an economist or a politician, I have to believe there are better approaches.
What ever happened to American initiative? You want Americans to spend? Relieve some of the financial burdens that stand in the way to success. Take the stimulus and apply it towards our childrens education. That'll save each family 250K per child AND give those students a fine education so we can compete again.
Also, we need money circulating again. This means we need small businesses and start-ups spending and expanding. Take some of the stimulus money and co-invest with the VC community. Google was once a start-up, they now employ 19000 people.
Anyway, thanks for your comments on this laughable, but truly sad scenario.
David, So well put, I can add little.
I was young when the 87 crash happened , but I recall my dad telling someone it didn't matter , as the next 5 years would be better then the last 5.
Ever so Sadly, I could not come to the same concussion this time.
I have a customer in Michigan , whos 91 year old , still sharp as a tac mother told him recently.
" We dont have bread line like the 30s only because they send the food stamp card to people in the mail , so they dont stand in line.
Best of Luck
Guys,
One thing I know is it will be back to normal again. Forces of nature. Facts of life, 2000+ years of history. So the political puppets or the nature of the thieves don't matter. So not so negative, just rational.
And fighting te be on the right side.
Thats hard enough without being angry
Payline and Paulus - I agree and believe in cycles. Unfortunately, with each turn we get worse. History has shown that leading nations will rise and fall. It is just a shame that our nation's time seems to be running short...
We don't live long enough to get angry - the best we can do is maintain a dialouge...
GE seems to have disappointed...
Please see this and comment. It is related to your comment about us being such good sheep.
http://www.bearfactsspecialistreport.com/
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