Monday, August 31, 2009

No Live Broadcast Monday - August 31, 2009

How old do you feel?














Eddie Haskell / The Beav / Wally

How old do you feel now?



















BIG MISTAKES WERE MADE
Allan Meltzer assesses President Obama’s socialist sally.

NO SURPRISE FOR THOSE WHO LISTENED
President Obama, as many others have noted, has a talent for giving misleading impressions.

MURDER'S OK, BUT NO TORTURE. WE'RE LIBERALS
To understand the grotesque hypocrisy of liberal-progressives we must view it from the perspective of their religion of socialism.

MASSACHUSETTS LEADS THE WAY
To cut soaring medical care costs under its version of single-payer health insurance (which is partly the model for proposed Federal socialization of the healthcare industry), Massachusetts proposes to begin rationing healthcare via an arbitrary limit on spending.


Driving a Fiat Currency into a Tree
by The Mogambo Guru
Tampa Bay, Florida


Floy Lilley at the Mises Institute, in her essay at LewRockwell.com, notes that the gold-standard dollar “provided us with nothing less than relative peace and prosperity over a span of 136 years” until that fateful year, 1913.

So how does she quantify “relative peace and security”? Well, one good way is to look at the value of the dollar, which would be strong if the country was a good investment, which it was, and in fact, “It had not only retained one hundred percent of its value, it had gained eleven percent. That’s right. The dollar we started with in 1776 bought us eleven percent more after almost seven generations.”

Then, on the “quiet 23rd of December in 1913”, J.P. Morgan and buddies got Congressional quislings to pass legislation authorizing the creation of the Federal Reserve, and to which I add that the jerk Woodrow Wilson then signed it, thus going down in history as the disastrous guy who set in motion the destruction of the dollar by the Federal Reserve creating excess money and credit.

She doesn’t make a point of it, but back then, the dollar was still gold, and thanks to the loathsome Federal Reserve creating the money to finance the bubbles of The Roaring Twenties that resulted in the Great Depression, the despicable Supreme Court infamously ruled in 1933 (and upheld by every traitorous Supreme Court case since then) that, contrary to what the Constitution said, the dollar did not have to be made of silver or gold, and that a paper “fiat” currency could be created, without limit, for any reason, even at a mere whim, anytime, day or night, 24/7, including holidays, not realizing that they were the idiots that REALLY destroyed the dollar! Gaahhh!

With this kind of disastrous stupidity, I dryly and humorlessly ask that you don’t talk to me about any “wisdom” emanating from the Supreme Court.

I was hoping that Ms. Lilley would spontaneously pick up on the theme of “heap scorn on the Federal Reserve for creating too much money and credit out of thin air and the despicable Supreme Court for letting them.”

"...achieving a ‘sound money’ is the easiest thing in the world! Just stop creating more of it! That’s all you need!"

I was going to suggest that she could, you know, maybe even put in an endorsement for the Mogambo Mindless Mob (MMM) brand of products, like the popular Mogambo Pitchfork (very effective when brandished threateningly) and the classic Mogambo Flaming Torches that will be so hard to get when the proletariat bozos start forming mindless mobs bent on revenge after so much hurting from the horrifying inflation in consumer prices, the pervasive, lingering economic depression, ruination, bankruptcy and the embarrassment of realizing that it was caused by the people we elected to Congress, who picked the people to run the Federal Reserve, which is the biggest failure one can imagine and should be immediately abolished, how Ben Bernanke, its chairman, should be turned over to me for some sessions at my new Mogambo Re- Education Center, where our muscular, trained technicians will slap the hell out of his stupid face, and the stupid faces of Congresspersons (except Ron Pau l), and the stupid faces of anyone who still believes in getting, or giving, a free lunch to, or from, anyone, especially the government, which is so corrupt that it once gave smallpox-infected blankets to the American Indians, which is only marginally worse than destroying the currency of the country and makes you reflexively scream in horror every time you see the money supply go up.

Well, it does me, anyway.

Instead, she goes on that the result was that since then, “the purchasing power of a dollar has plummeted over 95%”, which means that “We now pay twenty times more than J.P. Morgan did for any item.” Yikes!

Suddenly, my ears pricked up as she said, “Few have written on the mechanics of getting back to sound money”, which I immediately noticed makes me a genius, meaning that people should worship my gigantic brain, my wife and kids should stop calling me “idiot” and saying how much they hate me and maybe I should get a Nobel Prize.

The reason I am suddenly so enamored of my intellect is that achieving a “sound money” is the easiest thing in the world! Just stop creating more of it! That’s all you need! It’s simple! It is my Profound Mogambo Genius (PMG) that has solved the puzzle!

Okay, I am embarrassed that I got carried away there, and I admit that I am not very smart, and that is why I stole the whole idea from the fact that this is all the gold standard did; it prevented increases in the money supply, and the only thing that Congress had to worry about was doing smart things so that gold came into the country (increasing our money supply) and not doing something so stupid that it went someplace else better (decreasing our money supply).

But those days are all over now, and the only people who are buying gold, along with silver and oil, are the people who know what happens to an unsound, fiat currency (like the dollar) in the hands of a government composed of a bunch of socialist, commie-think yahoos (like the US Congress) that willingly deficit-spends insane amounts of money thanks to a central bank (like the Federal Reserve) creating it and a population sitting around saying, “Duh! Okay with us!” Hahaha!

We’re freaking doomed!

Until next time,

The Mogambo Guru
for The Daily Reckoning

Saturday, August 29, 2009

Prosperity for God's People - Friday August 28, 2009

(QQQQ)(SPY)(DIA)(INDU)(DJIA)








(chart courtesy Dave Kent)


BIG BAG-OF-WIND BERNANKE

The Record of the Federal Reserve (it's not good).

Think about this:

1. Cows

2. The Constitution

3. The Ten Commandments


COWS

Is it just me, or does anyone else find it amazing that during the mad cow epidemic our government could track a single cow, born in Canada almost three years ago, right to the stall where she slept in the state of Washington? And, they tracked her calves to their stalls. But they are unable to locate 11 million illegal aliens wandering around our country. Maybe we should give each of them a cow.


THE CONSTITUTION

They keep talking about drafting a Constitution for Iraq .... Why don't we just give them ours? It was written by a lot of really smart guys, it has worked for over 200 years, and we're not using it anymore.


THE 10 COMMANDMENTS

The real reason that we can't have the Ten Commandments posted in a courthouse or Congress is this -- you cannot post 'Thou Shalt Not Steal' 'Thou Shalt Not Commit Adultery' and 'Thou Shall Not Lie' in a building full of lawyers, judges and politicians ... it creates a hostile work environment.


Also, think about this ... if you don't want to forward this for fear of offending someone -- YOU ARE PART OF THE PROBLEM! It is time for America to speak up!
______________________________________________________

"A great trader who has made tens of millions of dollars from the stock and commodities markets told me the one individual universal reason for failure is the inability to take a loss. This has become my motto, as the true path to riches lies not with the wins, but managing the losses in a prudent, confrontational manner," Mark Cook
______________________________________________________

I have been to Israel 11 times and it never gets boring. I learn something each time I go and it is always very exciting.

This February I am headed back again my wife Janet, Mat Staver of the Liberty Counsel and Congressman Bob McEwen and anyone interested in seeing the Holy Land. This will be one of the most unique trips I have ever put together as it will not only include the biblical points of interests, but it also will provide a unique insight on the political and governmental aspects of the State of Israel, including an international town hall with government officials from Israel.

You can find out more about this all inclusive tour and the town hall here.

I hope you will consider attending. It promises to be a great time and a rewarding experience. Space is limited.

With gratitude,

Mike Huckabee





Copper Scroll Project

The Copper Scroll Project - Part 1 from Quiet Sight on Vimeo.

Thursday, August 27, 2009

Myths About Daytrading




TRADING MYTH #1 - You've seen one trading course, you've
seen them all!


THE TRUTH? Mike Reed's approach to trading is far different
than any you've ever seen. Mike has been trading
SUCCESSFULLY for 27 years now. His trading course is leaps
and bounds ahead of ANY other trading course you may have
purchased in the past...and it's LIVE!

Check out a "sneak peek" of the course here:

http://www.tradestalker.com/Sneak%20Peek.pdf

The majority of trading courses out there are like
treadmills, you buy them, use them for a few weeks, and then
they sit and gather dust. That's why we're offering you
something different!

You will use "Read the Greed-LIVE!" each and every day and
you will see that you wouldn't trade without it.

This is not "buy low, sell high, make $5,000 your first day
and quit your day job the second day" kind of course. How
many of those traders do you suppose survive the markets
year after year? Mike has been trading since 1982... that's
27 years, and the techniques he is going to show you in this
course are the SAME techniques that he uses each day trading
for a living.

TRADING TAKES WORK! There's just no getting around that
fact. Get "Read the Greed - LIVE!"- Knuckle down, roll up
your sleeves, study the materials, practice the discipline
and work hard. That's how Mike has become like a trading
artifact ;)

If you want to be rich, then watch the rich folks and do
what they're doing...if you want to be thin, watch what the
thin people do and do what they're doing...yada, yada,
yada...

Well, by golly, it you want to be a successful trader, then
watch what a successful trader does and do what he's doing!
Definitely a no-brainer.

Check out a "sneak peek" of the course here:

http://www.tradestalker.com/Sneak%20Peek.pdf

The course is on sale only until Monday - August 31st
(that's only a few days away). There are only 10 courses
left and at a $400 discount...they won't last long.

So, what are you waiting for ?! Go to the page below and
order right away before it's too late.

http://www.tradestalker.com/SALE-RTGL.htm


Disclaimer: The publisher of this blog receives no monetary compensation from Mike Reed the TradeStalker. However, in the interest of full disclosure, he can be caught most days taking points out of the market using techniques he learned from Mike.

Prosperity for God's People - Thursday August 27, 2009

(QQQQ)(SPY)(DIA)

Notes From Dr. Charles Krauthammer’s Speech to the Center for the American Experiment

Last Monday was a profound evening, hearing Dr. Charles Krauthammer speak to the Center for the American Experiment. He is brilliant intellectual, seasoned & articulate. He is forthright and careful in his analysis, and never resorts to emotions or personal insults. He is NOT a fearmonger nor an extremist in his comments and views. He is a fiscal conservative, and has a Pulitzer prize for writing. He is a frequent contributor to Fox News and writes weekly for the Washington Post. The entire room was held spellbound during his talk. I have shared this with many of you and several have asked me to summarize his comments, as we are living in uncharted waters economically and internationally. Even 2 Dems at my table agreed with everything he said! If you feel like forwarding this to those who are open minded and have not ‘drunk the Kool-Aid’, feel free...

...A summary of his comments:

1. Mr. Obama is a very intellectual, charming individual. He is not to be underestimated. He is a ‘cool customer’ who doesn't show his emotions. It's very hard to know what's ‘behind the mask’. Taking down the Clinton dynasty from a political neophyte was an amazing accomplishment. The Clintons still do not understand what hit them. Obama was in the perfect place at the perfect time.

2. Obama has political skills comparable to Reagan and Clinton. He has a way of making you think he's on your side, agreeing with your position, while doing the opposite. Pay no attention to what he SAYS; rather, watch what he DOES!

3. Obama has a ruthless quest for power. He did not come to Washington to make something out of himself, but rather to change everything, including dismantling capitalism. He can’t be straightforward on his ambitions, as the public would not go along. He has a heavy hand, and wants to ‘level the playing field’ with income redistribution and punishment to the achievers of society. He would like to model the USA to Great Britain or Canada.

4. His three main goals are to control ENERGY, PUBLIC EDUCATION, & NATIONAL HEALTHCARE by the Federal government. He doesn't care about the auto or financial services industries, but got them as an early bonus. The cap and trade will add costs to everything and stifle growth. Paying for FREE college education is his goal. Most scary is his healthcare program, because if you make it FREE and add 46,000,000 people to a Medicare-type single-payer system, the costs will go through the roof. The only way to control costs is with massive RATIONING of services, like in Canada. God forbid.

5. He’s surrounded himself with mostly far-left academic types. No one around him has ever even run a candy store. But they’re going to try and run the auto, financial, banking and other industries. This obviously can’t work in the long run. Obama’s not a socialist; rather he's a far-left secular progressive bent on nothing short of revolution. He ran as a moderate, but will govern from the hard left. Again, watch what he does, not what he says.

6. Obama doesn’t really see himself as President of the United States, but more as a ruler over the world. He sees himself above it all, trying to orchestrate & coordinate various countries and their agendas. He sees moral equivalency in all cultures. His apology tour in Germany and England was a prime example of how he sees America, as an imperialist nation that has been arrogant, rather than a great noble nation that has at times made errors. This is the first President ever who has chastised our allies and appeased our enemies!

7. He’s now handing out goodies. He hopes that the bill (and pain) will not ‘come due’ until after he’s reelected in 2012. He’d like to blame all problems on Bush from the past, and hopefully his successor in the future. He has a huge ego, and Mr. Krauthammer believes he is a narcissist.

8. Republicans are in the wilderness for a while, but will emerge strong. We’re ‘pining’ for another Reagan, but there’ll never be another like him. Krauthammer believes Mitt Romney, Tim Pawlenty & Bobby Jindahl (except for his terrible speech in February) are the future of the party. Newt Gingrich is brilliant, but has baggage. Sarah Palin is sincere and intelligent, but needs to really be seriously boning up on facts and info if she’s to be a serious candidate in the future. We need to return to the party of lower taxes, smaller government, personal responsibility, strong national defense, and states’ rights.

9. The current level of spending is irresponsible and outrageous. We’re spending trillions that we don’t have. This could lead to hyper inflation, depression or worse. No country has ever spent themselves into prosperity. The media is giving Obama, Reid and Pelosi a pass because they love their agenda. But eventually the bill will come due and people will realize the huge bailouts didn’t work, nor will the stimulus package. These were trillion-dollar payoffs to Obama’s allies, unions and the Congress to placate the left, so he can get support for #4 above.

10. The election was over in mid-September when Lehman brothers failed. fear and panic swept in, we had an unpopular President, and the war was grinding on indefinitely without a clear outcome. The people are in pain, and the mantra of ‘change’ caused people to act emotionally. Any Dem would have won this election; it was surprising it was as close as it was.

11. In 2012, if the unemployment rate is over 10%, Republicans will be swept back into power. If it's under 8%, the Dems continue to roll. If it's between 8-10%, it’ll be a dogfight. It’ll all be about the economy.

I hope this gets you really thinking about what's happening in Washington and Congress. There’s a left-wing revolution going on, according to Krauthammer, and he encourages us to keep the faith and join the loyal resistance. The work will be hard, but we’re right on most issues and can reclaim our country, before it's far too late.

Wednesday, August 26, 2009

Prosperity for God's People - Wednesday August 26, 2009

(QQQQ)(DIA)(SPY)(DJIA)

Complete broadcast.

Prosperity for God's People - Tuesday August 25, 2009

(QQQQ)(SPY)(DIA)(.SPX)

Sunday, August 23, 2009

Flagstock 2009


















Thursday, August 20, 2009

Prosperity for God's People - Thursday August 20, 2009

(QQQQ)(DIA)(SPY)(.SPX)

Complete broadcast.

"There isn't much point to making a lot of money if you are susceptible to making that one trading error that can give it all back plus more. Once you have made a fortune and lost it, the psychological work that you will need to do to get it back is enormous compared to work that is necessary to keep yourself from losing it in the first place. As a trader it is more important to know that you will always follow your rules than it is to make money, because whatever money you make, you will inevitably lose back to the market if you can't follow your rules."
Mark Douglas - The Disciplined Trader

Wednesday, August 19, 2009

Prosperity for God's People - Wednesday August 19, 2009

(QQQQ)(DIA)(SPY)(.SPX)

"The market's behavior can be defined as the collective action of individuals acting in their own self-interest to profit from future price movement while simultaneously creating that movement as an expression of their beliefs about the future." Mark Douglas

We've all heard about the herd.
We've heard "the herd is usually wrong" i.e. fade the herd.
We've heard "even if the herd is wrong their direction creates opportunity" i.e. trade the herd.

FADE THE HERD?
TRADE THE HERD?
OH ME! OH MY!
WHAT'S A TRADER TO DO?

If you truly ponder Mark's statement you might arrive at this conclusion - Neither.


Welcome to "Lone Wolf Trading".








more to follow...

Prosperity for God's People - Tuesday August 18, 2009

(QQQQ)(DIA)(SPY)(.SPX)

Complete broadcast.

Monday, August 17, 2009

David Williams - PageTrader

(QQQQ)(SPY)(DIA)(.SPX)


















I encourage you to take this concept and apply it to whatever time frame you understand.

Savant

Pastor Frank

Prosperity for God's People - Monday August 17, 2009

(QQQQ)(DIA)(SPY)(.SPX)

Complete broadcast.


Dow Jones Industrial Average

The Dow broke out of its trend channel and through short-term support, warning of a secondary correction.

Dow Jones Industrial Average

Transport

The Dow Transport Average likewsise broke through support at 3600.

Dow Jones Transportation Average

S&P 500

The S&P 500 broke through short-term support at 990 — also warning of a secondary correction.

Standard & Poors 500

Shanghai Composite

The fall was initiated by a sharp drop in the Shanghai Composite Index, commencing a secondary correction. The latest gap indicates strong selling pressure.

Shanghai Composite Index

Commodities

The CRB Commodities Index broke through support at 255, signaling another test of primary support at 230 — and a negative impact on resources stocks.

CRB Commodities Index


Colin Twiggs

The strong man is the one who is able to intercept at will the communication between the senses and the mind.

~ Napoleon Bonaparte (1769 - 1821)

Saturday, August 15, 2009

David Williams - PageTrader

(QQQQ)(DIA)(SPY)

Savant

Greg - TradingFaith

(QQQQ)(DIA)(SPY)

Pastor Frank

Prosperity for God's People - Friday August 14, 2009

(QQQQ)(SPY)(DIA)

Thursday, August 13, 2009

David Williams - PageTrader

(QQQQ)(DIA)(SPY)

Mike Reed / TradeStalker

(QQQQ)(DIA)(SPY)

Greg - TradingFaith

(QQQQ)(SPY)(DIA)

Pastor Frank

Prosperity for God's People - Thursday August 13, 2009

(QQQQ)(DIA)(SPY)

Complete broadcast.

The Saudi Arabia Next Door

By Byron King

08/13/09 Pittsburgh, Pennsylvania

I had the unique opportunity to tour two different oil sands operations near Fort McMurray, in northern Alberta. I saw a massive open-pit oil sands mine, and the associated reclamation effort, operated by Syncrude Canada Ltd. I also visited an in situ oil sands recovery project called Surmont, operated by ConocoPhillips.

When we think about the concept of ’Peak Oil’ today, we need to keep in mind what we’re talking about. The curves show oil output peaking in so many parts of the world. This phenomenon is quite real, as long as you understand that it’s the light, sweet, easy-flowing oil that is getting harder and harder to find, certainly in significant quantity.

But there are a lot of other hydrocarbon molecules out there. Most of those molecules are not light, sweet crude oil. Indeed, most of the hydrocarbon molecules that the world will use in the future will be ’heavy,’ with lots of carbon atoms and not so many hydrogen atoms.

Here’s a graph from oil services giant Schlumberger that estimates the world’s heavy oil and bitumen resources. Canada’s 400 billion cubic meters of bitumen translates into something like 1.4 trillion barrels of oil equivalent. How much is that? Well, it’s about SEVEN times the total oil reserves of Saudi Arabia.

phpSp0uAD

Sure, there are still issues about land disturbance, settling ponds, water usage, gas usage and myriad of other things that come up when you’re spending billions of dollars on a major mining effort. But Syncrude has built its business model…Read more…

No More Giveaways; No More Recovery

By Bill Bonner

leadimage

08/13/09 Ouzilly, France

Hey…how ’bout this rally!

The Dow was up 120 points yesterday. Now, we’re beating the bounce of 1930. The post-crash bounce in 1930 lasted fifth months. Ours began on March 9th…so it is now in its sixth month.

And like 1930, people are coming to believe that recession is almost over…and happy times are here again.

Heck, we’re sure the trouble is behind us now; 53 economists said so!

According to Bloomberg:

“The economy will expand 2 percent or more in four straight quarters through June, the first such streak in more than four years, according to the median of 53 forecasts in the monthly Bloomberg News survey. Analysts lifted their estimate for the third quarter by 1.2 percentage points compared with July, the biggest such boost in surveys dating from May 2003.

“‘We’ve averted the worst, and there are clear signs the stimulus is working,’ said Kenneth Goldstein, an economist at the Conference Board in New York.

“‘Cash-for-clunkers was the icing on the cake,’ said David Greenlaw, chief fixed-income economist at Morgan Stanley in New York. ‘It’s well-timed stimulus syncing with cyclical forces leading to a ramping up of production.’”

Yes, now the economy is firing on all cylinders…or just about. Yep. No doubt about it. Still, there are some nagging doubts. The latest figures show foreclosures still increasing – up 7% in July from a year before. And house prices are still going down. And unemployment is still going up. And consumer prices are…Read more…


Prosperity for God's People - Wednesday August 12, 2009

(QQQQ)(DIA)(SPY)

Complete broadcast.

Wednesday, August 12, 2009

David Williams - PageTrader

(QQQQ)(SPY)(DIA)($INX)((DJIA)







David rarely speaks of how much money you can make as a trader. (ok, maybe never)

What he does speak of with great passion is "Risk Management".

He did not write the following, but it embodies everything he has ever said on this radio program.

Read it / Laugh / Own it

Solfest has been telling it like it is since…well, he’s pretty old. I know some really stupid old people. You know the type: Bigoted, backward and otherwise anachronistic. (In contrast to bigoted, backward and otherwise ignorant young’uns that seem to multiply in this country these days). Sol offers a few moments of clarity in this blindingly fast era of postmodern technological and philosophical dilemmas we find ourselves in. After reading this post, I suppose I have to say he’s pretty darn wise. I don’t usually reproduce entire posts on my blog, but this is good. No BS. None of that trading mythology tripe like, “the entry is only 23% of the method, the exit is 77%”, or “the entry is 90% of it”, or “it’s all about discipline”. (How do those knuckleheads come up with their percentages, anyway?)

Ladies and gents, I give you Sol:

Why you should not be a trader

Before I answer that statement let’s have a look at why people want to be traders.

1) They can’t sleep.

2) They just got fired.

3) They have never been hired.

4) They want to make lots of money.

5) They know a guy and he…….

6) They don’t like their boss.

7) They don’t want to be “corporate”.

8) They want to work when they feel like it.

9) They can do this work from the beach.

10) Women love traders.

Now let’s have a look at what I think it takes to be a successful trader, or more precisely to become a successful trader.

1) A complete understanding and acceptance of risk management.

That’s it?

Ok let me flesh that out a bit. I used to work as a lender in a bank. Banks have a department called risk management. The people that wind up there usually did not do so well in the sales (lending) side of the business. I wonder if they still call it sales? Never mind that’s another topic.

Where were we? Oh yes risk managers, risk managers are generally men who are old, bald, ugly, have no friends, and don’t do all that well in social situations. They are most comfortable in their 17th floor cubicle where they do not see any human life form other than their comrades.

What does this have to do with trading?

Nothing I just like making fun of risk managers.

No no no bear with me here. So I as the lender in the bank meet a client, the client tells me a very long story about why they need money for this great business idea they have. I fall for it hook line and sinker and spend the next 2 days writing up a credit request that I send to risk management.

Now the fun begins.

One of my “partners” in risk calls me up to “discuss” this proposal, they start out nicely enough as they have been taught to do after the Johnson incident. Then they forget all that partner crap and really start laying into me. Insufficient net worth, no current ratio, no experience, tough industry, won’t withstand a cyclical downturn, debt service ratio too weak, why would I send this piece of crap down here and waste their time, how long have you been in this business you stupid moron.

All righty then.

Is there a point to all this?

There is, I have to stop crying first. Ok, I’m better now.

Let’s get back to trading.

So I’m all set up, charts, broker, front end, Mark Douglas in hand, and now I see a “trade”, WHAM I pull the trigger, SLAM hits my stop in 3 seconds, WHAM go again, I am a day trader and I am fast baby, SLAM hits my stop in 7 seconds, and on and on we go.

Now let’s add risk management. Remember all those annoying questions? How much capital do I have equals my position size. How many losing trades am I allowed to take? How many winning trades before I stop? What is that based on? What are my stops? When do I stop trading, daily stops, weekly stops, monthly stops, and on and on we go.

This is the reason why you should not be a trader. You are the risk management department. In banking the lender cannot be the risk manager or bad things happen. In our business the trader is the risk manager, and, bad things happen.

YOU MUST PRESERVE CAPITAL.

In my opinion that is the first and last thing all traders must think about. Not charts, not set ups, not what will I do with all my profit.

Capital preservation. It’s not sexy, it’s not fun, it’s not exciting, and it has rules, rules that must be followed or you’re fired. In other words it’s everything that you hated about your other job.

If you want a fun, exciting, and sexy job try on line poker.

If you want to be a trader/risk manager shave your head bald, insult all your friends until they leave, stop bathing, wear polyester, and sniff constantly.

There, you’re ready to go.

Savant

Tuesday, August 11, 2009

Greg - TradingFaith

(QQQQ)(DIA)(SPY)(.INX)($SPX)



Today Greg and I talked more about trading than the market itself. This clip from today's show contains wisdom from 10 years of combined trading experiences. The lessons we discussed today are mandatory for you to become a successful trader. The only option is WHEN will you take the lessons, WHO will teach them to you, HOW long will it take, and ultimately, WHAT will it cost you?

It just so happens that today, Greg and I, teach these mandatory lessons, in about 45 minutes, and by the grace of God, we do it for FREE!

Until you learn what we discuss in this podcast, you can NOT succeed as a trader

(I know that sounds pompous. So go ahead... go to the webinars, buy the indicators, blow up the accounts, deny, grieve, wish, hope, pray, swear, bite the head off a chicken, and then come back and listen to this podcast.)

ps/ Greg again today discusses the possibility of opening a Trade Calling room. I encourage you to listen to this part of the show and be in prayer. Greg is in a difficult place. He knows that God has given him a unique gift. He knows that using this gift in a live environment, will feed the hungry, give drink to the thirsty, clothe the naked, house the homeless, give hope to the hopeless, and allow at least a portion of the Body of Christ to rise up and become the head and not the tail, to be above and not beneath,to lend and not borrow, to become the givers that God has called them to be, as well as supporting their own families, which according to Jesus, comes way before you ever give a dime to the Church or anyone else. In fact, according to Jesus (not my words but his paraphrased) "If you don't take care of your own family ahead of the Church, you are an infidel." Hey, I don't make this stuff up..........I just point it out.

Now, let's discuss the 50,000 lb. elephant in the room.
Why is any of this even a question?
So what's to pray about you ask?

That Greg is capable of doing this? (no, I firmly believe he can)

The call for prayer is not even to alleviate all the suffering I mentioned above. The call to prayer is that Greg hear the Holy Spirit. That he hear the TRUTH! Not my version, not your version, not even his own version of the truth, but that he hear the REAL TRUTH that comes only from the throne of God via the Holy Spirit.

I want to fall on my knees right now, tear my clothes, put ashes on my head, fast, pray, yada...

If God had given me Greg's gift there is no question in my mind what I would do. The KEY is, He didn't... he gave it to Greg.

I know that Greg has worked diligently under the anointing for years to raise up Traders for the Master, yet godly people are rebuking him right now. They are telling him that if he makes it possible through his God given talent to feed the hungry, give drink to the thirsty, clothe the naked, house the homeless, give hope to the hopeless, and allow at least a portion of the Body of Christ to rise up and become the head and not the tail, to be above and not beneath,to lend and not borrow, and to become the givers that God has called them to be, as well as supporting their own families, which according to Jesus, comes way before you ever give a dime to the Church or anyone else, that
he is wrong, he is a failure, he missed God.

HUH?

Wow! In the flesh I could call those people clever names that the Spirit won't allow. However, in the Spirit, I can pass NO judgment. None. Nada. All I can do is pray.

Not a prayer that says "Oh God, help Greg see it the way I see it".
A prayer that says - "Oh God, show Greg (and me) YOUR truth, whatever that may be".

I ask you to say that prayer. (NOW)

--------------------------------------------------------------------------

OK, lets get personal for a minute. I've been broadcasting for over 4 years now. My original goal was that we as a community would cut through the hype and make big bucks to the Glory of God. To the natural eye it would seem that God could have not picked a worse time to launch such a venture. Right? Wrong! If you can accept the fact that sometimes your trade is wrong, but the market is always right, you stand head and shoulders above 90% of traders, who ultimately fail anyway. If you can take a leap of faith beyond the markets and accept that God is ALWAYS right, then you know that we stand in the Sweetest Spot, the Tallest Cotton, and the greatest Field of Dreams ever created.

Tune in - Turn on - Love!

Prosperity for God's People - Tuesday August 11, 2009

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Complete broadcast.

Monday, August 10, 2009

Prosperity for God's People - Monday August 10, 2009

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The Fed Buys Last Week's Treasury Notes

Trader Linda Raschke: Tips On Day-Trading the S&P 500

Beautiful Lies
I am currently reading Satyajit Das's book, Traders Guns & Money. I'm loving it and find myself continually laughing out loud.


The back cover of the book describes it as "a wry and wickedly comic expose of the culture, games, and pure deceptions played out every day in trading rooms around the world, usually with other peoples money".

Here are a few samples.

"Beautiful lies' are the lies that we like to believe; we know they are not true but everything makes us want to believe them - that is what makes them beautiful.

I used to be responsible for showing the trainees around the trading floor. 'Look, it's quite simple, I said, breaking down the hierarchy of the trading floor. 'There are salespeople - they lie to clients. Traders lie to sales and to risk managers. Risk managers? They lie to the people who run the place - correction, think they run the place. The people who run the place lie to shareholders and regulators.' I remembered our quantitative colleagues. 'I forgot the quants - our fabulous rocket scientists! When last heard from, they were trying to develop a model for lying.'
'And clients?' one of the trainees asked tentatively. I thought about it for a few seconds. 'Clients. They lie mainly to themselves!' To enter the world of derivatives trading is to enter a realm of beautiful lies.

There is only one way to make money - you buy low and sell high. Sorry, forgot the second rule - sell high, buy low. Listening to traders you get an entirely different view of their business, especially its complexity.

Some traders engage in elaborate analysis of market forces. There is technical analysis consisting of trying to find patterns in price movements over time, there are head and shoulders, rising and falling pennants, retracement points, resistance lines, oscillation indexes, RSI (relative strength indicators, not repetitive strain injury). There are more arcane techniques - Elliot waves, Fibonacci series, Japanese candle stick techniques. The list is endless. It is a modern version of reading the entrails of a slaughtered ox.

Success in trading relies on on simple rules. Overwhelming force is generally good - you just have more money than everybody else and can hang on until everybody is forced out of the game. Ganging up is effective - you just get together with other traders and fall upon a weakened animal like hyenas or wolves. Ambush is also good - you know something that the other guy does not know, at least not yet. Flow traders are well versed in ambush. It also helps to be lucky - better to be a lucky fool than an unlucky genius." Satyajit Das, Traders Guns & Money
Traders, Guns & Money: Knowns and unknowns in the dazzling world of derivatives

I believe we, the independent traders, are the weakened animal that the institutional hyenas devour.

The line about technical analysis being the "modern version of reading the entrails of a slaughtered ox" is my favourite.

Of course that doesn't include my magic blue bars, right?


Methods of a Wall Street Master

It is a common observation that "you can't change people, they have to change themselves." It is also typical that many people don't change until their whole world comes crashing down on them, until their backs are against the wall and there is no longer anywhere to go but forward. My purpose in discussing all these things is to urge you not to let yourself get caught in the downward spiral of the search for glory. Don't wait until your back is against the wall. Desperation doesn't have to precede change. Start now and look for some of the symptoms I've described. It all comes down to learning to own your problems and take responsibility for them. Making mistakes is part of the business of trading. In those moments when reality slaps you in the face, try to ask yourself what you have done to make them happen; not in context of self-reproach or punishment, but in the context of the opportunity for positive change and growth.

Trader Vic

Daily Audio Bible


Prosperity for God's People - Thursday August 06, 2009

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Wednesday, August 05, 2009

David Williams - PageTrader

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Pastor Frank

Prosperity for God's People - Wednesday August 5, 2009

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Complete broadcast.

If...

If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you
But make allowance for their doubting too,
If you can wait and not be tired by waiting,
Or being lied about, don’t deal in lies,
Or being hated, don’t give way to hating,
And yet don’t look too good, nor talk too wise:

If you can dream–and not make dreams your master,
If you can think–and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same
;
If you can bear to hear the truth you’ve spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build ‘em up with worn-out tools:

If you can make one heap of all your winnings
And risk it all on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: “Hold on!”

If you can talk with crowds and keep your virtue,
Or walk with kings–nor lose the common touch,
If neither foes nor loving friends can hurt you;
If all men count with you, but none too much,
If you can fill the unforgiving minute
With sixty seconds’ worth of distance run,
Yours is the Earth and everything that’s in it,
And–which is more–you’ll be a Man, my son

Rudyard Kipling

Tuesday, August 04, 2009

Bernie Madoff Needs a Pen-Pal

























Federal BOP

To write to Madoff, address your envelope to:

BERNARD MADOFF #61727-054
FCI BUTNER MEDIUM I FEDERAL CORRECTIONAL INSTITUTION
P.O. BOX 1000 BUTNER, NC 27509

Serge Taran,
Founder INPM
http://PrisonMinistry.net/reasons.htm

David Williams - PageTrader / The Recovery Bubble

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Pastor Frank

Trading the Recovery Bubble

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How Wall Street Is Generating Trading Profits

The more alert blogs have finally figured out how Goldman Sachs, et. al. are creating enormous trading profits, especially at a time when trading volumns in most securities have seriously declined. These Wall Street firms are buying toxic, illiquid garbage which institutional investors (read: your pension fund or insurance company) have marked at low levels (yet still not low enough) and selling these securities into the Fed at the Fed's inflated bid levels. This is one way in which the Fed is injecting liquidity into the big banks - at the taxpayers' and pension investors' expense. It is also a primary reason the Fed refuses to disclose what it its paying for these toxic assets and why the Fed is spending millions in lobbying to prevent an audit.

Here's the mechanics, and it's a trading ruse that was being used when I was trading junk bonds back in the 1990's: Naive pension fund has toxic crap asset marked down to 20 cents. Snake Wall Street firm has bid from the Fed at 50 cents. Pension fund trader has no idea who the buyer is and what the general bid is in the market, because this asset hasn't traded in over a year. The 20 cent mark is based on Markit's "guesstimate." Snake Trader tells Pension Trader "look, I can pay you 10 cents for this asset, it's the only bid in the market and I'm not even sure where I'll re-trade this thing, but I'm willing to take some risk at .10. Pension Trader, in somewhat panic and somewhat gratitude sells the asset to Snake Trader. Snake Trader turns around sells it to the Fed for 50 cents. A 40 cent spread on a bond with $10 million face is $4 million dollars. WE know the Fed is eventually investing over $1 trillion to buy this toxic crap. If firms like Goldman and B of A (Merrill) and JP Morgan can average a 20 cent spread on $1 trillion, that will eventually be $200 billion injected into the banks at the expense of everyone else.

Is a 20 cent spread, on average, unrealistic? I know for a fact that it is not because we averaged 10-20 cent spreads in trading junk bonds out of the RTC and into investors back in the 1990's. Given that these toxic asset-backed bonds are even more toxic and less liquid than junk bonds were, I'd say an average of a 20 cent spread overall may actually be conservative.

Think about how this works the next time you look at your pension or 401k statement and then you see Goldman et. al. reporting massive trading profits. Those profits are nothing more than these Wall Street firms ripping off the whole system. And one more point, some of the blogs reporting this activity are speculating that the Fed does not know how much mark-up is being taken by Wall Street on these trades. I beg to differ and would suggest that Bernanke and his cohorts have a very good idea how much is being made on this trade.

Here is the link to the Financial Times article which originally reported what is going on:

http://www.ft.com

Written by Dave in Denver

Housing Numbers Err on the Bright Side

By Bill Bonner

leadimage

08/04/09 Ouzilly, France

Is it time to buy a house?

Depends…

If you need a place to live and want to own a house, why not? Prices in some areas are fairly reasonable. But if you’re speculating, our guess is that you’ll get a better deal if you wait.

Why? For the many reasons we have given you in these Daily Reckonings. House prices may be firming in some areas – that’s what the Case-Shiller numbers seem to show. But nationwide, they are probably headed down for quite a while longer.

Herewith, four reasons why:

First, as you know, this is a depression. It will probably be long. And deep. You wouldn’t know it from looking at the stock market or reading the news. The Dow went up another 114 points yesterday. Oil rose to $71. And the dollar – anticipating inflation – fell to $1.44 per euro.

But that’s what bounces are supposed to look like. They look good enough so that people mistake them for the real thing…and get suckered into more losses.

This is a depression. Depressions drag down asset prices. Typically, prices become much more reasonable. And then they reach UNREASONABLE levels. House prices have become reasonable. Now they will become unreasonably cheap…

Second, waves of resets and foreclosures are still washing over the housing market. As Barry Ritholz told us in Vancouver, we’re only half way through the foreclosure process. There are more than 18 million empty…Read more…


The Call of the Century

Making market calls, or "predictions", is a common practice. Timing is always the hardest part. If your sole source of income is derived from the success of these calls or predictions, it is advantageous to attach a timing that is far enough out that it allows for new information to surface that can be used to mitigate any damage done to your reputation should that call be wrong.

Normal market calls usually state that for fundamental or technical reasons, a trend line is due to change directions. But in the short run, where market calls normally reside, fundamental forces often take a back seat to momentum. It has always been this way, which makes fundamental-based timing more difficult. But now more than ever, it seems that fundamentals have taken a seat all the way at the back of the bus.

Generally, the purpose of market predictions is short term profits. For this reason, the business of calling markets has shifted over the last year, far away from fundamentals. I am not saying that no one is making fundamental calls, only that many newsletter writers who make their living doing this are saying two very different things out of two sides of their mouths. (more)

Prosperity for God's People - Monday August 3, 2009

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Sunday, August 02, 2009

David Williams - PageTrader

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We Are All Jackasses Now
by Bill Bonner
Paris, France


For whatever reason, the French newspaper, Liberation, chose to recall a grim event last week. On February 4, 1912 Franz Reichelt, also known as the 'flying tailor,' put on his contraption - a homemade outfit designed to work like a parachute - went up to the first observation level of the Eiffel Tower, hesitated...then stepped over the rail and jumped.

Alas, he did not fly. Nor even float. He fell "like a stone," the paper reported.

Immortality was achieved, but not the way he had hoped. His stunt was captured by the new motion picture technology of the time. That silent film inspired the very popular Jackass videos, which show people engaged in reckless acts of mischief and mortality.

But we do not have to go to Youtube to enjoy the Jackass genre. We have only to read the news. All over the world the authorities are strapping on their absurd parachutes...and climbing to very high places. In Europe, banks borrowed 442 billion euros last month from the European Central Bank. Much of it is lent back to European governments. In America, stimulus funds are used to fix public toilets, as well as to repair Wall Street's balance sheets. Trillions of dollars have been put at risk in these adventures - $23 trillion in the United States alone. And yet, despite the most daring experiment in stimulus ever, by the end of June, the British economy was 5.6% smaller than it had been a year before, paralleling the decline that followed the crash of '29. As for the United States...we await the figures...

"In the past, workers were quick to move to where the jobs were. The Sun Belt traditionally bounced back first. But Florida, California, Arizona and Nevada have been flattened even more than the rest of the nation - by record foreclosures, government cutbacks and bankruptcies. Now, the jobless stay put...and stay unemployed."

On the evidence, stimulus programs aren't working. In fact, where they are tried the most they work the least. For proof, we go to Stimulation Nation itself. From America last week came news that new house sales had finally turned up. They were up 11% in June, according to the papers. That was the monthly figure. According to the annual numbers, they were down 21% from the year before - at the second lowest since they began counting in 1963. And since the population is much bigger than it was 52 years ago, this was relatively the worst June in history for new house sales. And now that the economy is in a slump, the rate of new household formation has been cut in half. Faced with lower incomes and worsening jobs prospects, people are less eager to set up new households - reducing the demand for new houses.

Unemployment shows no sign of improving, either. The stimulus program was supposed to cap joblessness at 8%. Officially, the rate is now 9.5%. Economist David Rosenberg puts the real unemployment rate almost twice that high. And businesses are cutting jobs even faster than expected. Economist Arthur Okun suggested a rule of thumb for predicting unemployment levels in a downturn. But firms are not only laying off redundant workers; they are laying off workers who would normally be spared. What's more, those who are left are working the shortest weeks ever recorded.

In the past, workers were quick to move to where the jobs were. The Sun Belt traditionally bounced back first. But Florida, California, Arizona and Nevada have been flattened even more than the rest of the nation - by record foreclosures, government cutbacks and bankruptcies. Now, the jobless stay put...and stay unemployed.

Currently, the excess capacity in the United States is staggering - both in labor and capital. Capacity utilization is only 65%; in theory, output can increase 35% before any new capital investments are made.

Recovery? "Forget it," says Rosenberg.

Now that the facts are out of the way, we end our critique of stimulus...and turn to laugh at the stimulators. "Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back," wrote John Maynard Keynes. And now it is Keynes' voice they hear.

"We are all Keynesians now," said Richard Nixon as he strapped on a crash helmet.

Keynes probably got the idea of a counter-cyclical stimulus in Bible class. And a good idea it was. Simple...intuitively correct...practically demonstrated...and theoretically sound. But he and his followers still managed to screw it up.

First, Keynes' General Theory is no theory at all...at least not in the scientific sense. It can't be tested. The results aren't reproducible. Instead, it's merely an idea about how things should work, based on an Old Testament story.

Pharaoh had a dream. He dreamt he saw seven fat cows devoured by seven scrawny, misbegotten cows. He didn't know what the dream meant, so he called for a young Hebrew man who had interpreted dreams for his master. Joseph told Pharaoh that Egypt was to enjoy seven years of abundance followed by seven years of famine. He told him what he should do about it too. He should store all the grain he could from the fat years...so he could pass it out when the going got tough.

This is a story we all know. It is easy to tell and easy to understand. But modern economists twisted it as though it were an inflation statistic. They maintain that when the business cycle turns down, it's just like a drought. And they can counteract the effect of the drought by giving the economy stimulus - liquidity - from the public sector.

Trouble is, they missed the point completely. Do you recall any public official urging the public to stop spending so much in the bubble years? Do you remember any Treasury Secretary or Fed Chairman suggesting that the U.S. government run real budget surpluses in the fat years? Does any headline from any paper in the nation mention a storeroom in which grain or treasure was stored for the lean years? Not at all! Instead, the feds encouraged people to eat their grain! Governments ran deficits even during the bubble years, with the biggest deficit in history in 2008, just as the lean years began. Now they have no real grain to offer. So they turn to a reckless, disaster-defying stunt - passing out phony money, like sawdust muffins...

Future generations will watch the video and laugh until their stomachs hurt.

Enjoy your weekend,

Bill Bonner
The Daily Reckoning


Greg - TradingFaith

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Pastor Frank

Prosperity for God's People - Friday July 31, 2009

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Complete broadcast.

Sunday, August 02, 2009

Henry Lewis Gates and the Debasement of American Education

More consequential than Professor Gates’s racist rant against a Cambridge police officer is the core rot in American education introduced by his academic specialty, black studies, which is an excrescence of 1960s and 1970s student radicalism.