CTA Trading Desk Morning Report
[7:00am ET] Good morning.
Here are the 7:00am ET snapshots of the latest equity market trading results for Europe, and futures prices plus 5-minute charts of the futures for S&P 500, 30-year US Treasury Bond, US Dollar index, Gold and Crude Oil.
| Symbol | Name | Last Trade | Change | Related Info |
|---|---|---|---|---|
| ^ATX | ATX | 2,754.00 |
 18.00 (0.66%) |
Components, Chart, More |
| ^BFX | BEL-20 | 2,654.01 |
 1.63 (0.06%) |
Components, Chart, More |
| ^FCHI | CAC 40 | 3,956.08 |
5.10 (0.13%) |
Components, Chart, More |
| ^GDAXI | DAX | 7,195.81 |
32.34 (0.45%) |
Components, Chart, More |
| ^AEX | AEX General | 346.98 |
0.92 (0.27%) |
Components, Chart, More |
| ^OSEAX | OSE All Share | 488.07 |
0.94 (0.19%) |
Components, Chart, More |
| ^SMSI | Madrid General | N/A | 0.00 (0.00%) | Chart, More |
| ^OMXSPI | Stockholm General | 366.08 |
0.70 (0.19%) |
Components, Chart, More |
| ^SSMI | Swiss Market | 6,494.11 |
4.79 (0.07%) |
Components, Chart, More |
| ^FTSE | FTSE 100 | 5,938.87 |
57.88 (0.98%) |
Components, Chart, More |
http://finviz.com/futures.ashx
http://finviz.com/fut_chart.ashx?p=m5&t=ES
http://finviz.com/fut_chart.ashx?p=m5&t=ZB
http://finviz.com/fut_chart.ashx?p=m5&t=DX
http://finviz.com/fut_chart.ashx?p=m5&t=GC
http://finviz.com/fut_chart.ashx?p=m5&t=SI
http://finviz.com/fut_chart.ashx?p=m5&t=CL
The team will check in during the day, reporting in the Discourse when there is a new entry.
Enjoy your day.
Cara on Trends & Cycles
Vad's Catch of the Day
Kaimu's Sound Money
CTA Trading Desk Mid-Day Report
CTA Trading Desk Post-Close Report
Comments
Gold vs GDX
http://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=0...
Currently short gold / silver/ oil [based on expectant rise in the USD]
Also still short PCLN from May 9th
Small cap Chinese stocks
I have been asked to discuss my views on the small cap China stocks that I was writing up in 4Q2011.
The bottom line is that I think the independent investor was hoodwinked with a barrage of positive "news" of these companies in Q3, leading right into the start of tightening by the Chinese central bank, which reversed the intermediate-term (probably also the long-term) trend for China stocks. What caused me to back out (and also stop writing for the NASDAQ Community) is my belief that there was a huge amount of wash trading going on in these issues, right at the cycle top, which masked the distribution. There were days, and I wrote about it, where the trade volume by mid-day was say 600,000 shares with a bid-ask spread of say 1 cent on say an $8.00 stock, with steady trading, but the moment I entered an order to sell 5,000 shares, the bid-offer was dropped 10 cents or more, and the moment I removed my offer, it was raised back to the earlier level. This was happening across the board, maybe not on all the small cap China stocks I was long, but enough to tell me there was widespread corruption in the marketplace, and I saw NASDAQ and the SEC not doing a thing about it. So, with the need to take on so much risk, and my having so little time to manage this situation (as best I could and to the level required), I lost interest.
Re these companies: I think many of them are financially strong (audited by large firms) and have fast-growing operations (respected by the large Wall Street firms); therefore, in the long-run, they ought to be ok.
The problem is not, in my view, with China; it's with the American stock promoters and small crooked broker-dealers who are behind many of these companies. There needs to be a full-out investigation by independent investigators and prosecutors behind the whole situation.
If you are holding them, and you believe in the companies involved, I think buy-and-hold rather than selling at a low point is the preferred tactic. If I was fully engaged, I'd even play the promoters game. I'd buy more on extreme weakness, in order to lower my cost base, and then when the China equity market comes out of its funk and the world goes back into these China small caps, I'd blow them out at high prices, and then walk away.
Re: Small cap Chinese stocks
Bill,
Apropos of your comment there is a new story on deepcapture.com. I believe you alerted us to the site a few years ago after Patrick Byrne's infamous "sith lord" comment. The more I read from you and the subjects on deepcapture.com, the more sick I become and oddly the more greatful that people have the courage to pull back the curtain. Thanks again.
Re: Small cap Chinese stocks
nssred,
I have no association with Patrick Byrne, but I do respect his ongoing efforts to attack the system where he believes it is corrupt.
Re http://deepcapture.com, I just love the tags to the latest chapter of their story: The Mafia, the Markets, and a Message from Russia
http://www.deepcapture.com/the-miscreants-global-b...
Tags: Abbas Gokal, Abdullah bin Laden, Adam Sender, Adler Coleman, Ahmed Nasreddin, Al Qaeda, Al Taqwa, Alain Chalem, Albert Huber, Aleks Paul, Ali Nazerali, Allen Barry Witz, American Realty, An-Nahda, Andrew Bressman, Andrew Warren, Anna Chapman, Anthony Eligindy, Anthony Pellicano, Bait ul Mal, Bank of New York, Barry Minkow, BCCI, BECS, Benex, BMI Inc, Bonnano, Boris Berezofsky, Bruce Rappaport, Carl Icahn, Colombo, Crazy Eddie, D.H. Blair, Dannis Gaito, Datek Securities, Debabish Banerjee, Department of Justice, Egyptian Islamic Group, Egyptian Islamic Jiha, espionage, Eugene Phillips, exis capital, FBI, Federal Bureau of Investigations, Felix Sater, Felix Satter, Filipp Bobkov, Financial Terrorism, First Hanover, Frederick Contini, FSB, Gambino, Gene Phillips, Gennady Klotsman, Genovese, Global Chemical, Global Securities, Global Witness, Gokal family, Gotham, Grigory Loutchansky, Gruntal Securities, Hamas, Hanover Sterling, Harbor Securities, Hezbollah, Ibrahim Bah, Income Opportunity, Iran, Irving Kott, ISI, Islamic Salvation Front, Ivan Boesky, Jack Catain, Jonathan Curshen, Judah Wernick, Khomeini, Kingsford Capital, Little Japanese, Loutchansky, Luchese, Mafia, Manuel Asensio, Marc Rich, Marzouk, Michael Milken, Michael Sheferofsky, Mikhail Sater, Moammar Qaddafi, Mob, Most Bank, Mousa Abu Marzouk, Muslim Brotherhood, Navigator Asset Management, Norbert Grupe, Operation Uptick, organized crime, Orinn Hatch, Osama bin Laden, Pakistan, Palestinian Islamic Jihad, Pershing Square, Peter Berlin, Peter Bond, Phil Gurian, Phillip Abramo, Qatar Charitable Society, RAK Bank, Randolph Pace, Ras Al Khaimah, Real Estate Investment Trust, REIT, REITs, Robert Brennan, Russia, Russian espionage, SAAR Network, SAC Capital, Salim Saleh, Salvatore Lauria, Sam Antar, Sami al Arian, Semion Kislin, Semion Mogilevich, Senator, Sinex Bank, Sinex Securities, Southmark, spy, Stephen Ilya Taub, Steve Cohen, Steven Cohen, Steven M Cohen, Stuart Creggy, terroism, terrorist financiers, The Wall Street Journal, Timothy McVeigh, Transcontinental, Valmet Group, Vladimir Gusinsky, Warren Sulmasy, Westfield Financial, William Ackman, Yasin al Qadi, YBM Magnex, Youssef nada
Germans End Nuclear Power 2021-2022
http://tinyurl.com/43hnn8x
http://tinyurl.com/4xwx2au
Gas key for EU after German atom decision-Oettinger
Mon May 30, 2011 10:13am GMT
In researching current status on Fukushima, I came accross this news. I thought it quite astonishing. There are a number of related stories, so credibility is above 50% imho.
We don't know if gas, renewables or some other energy sources will benefit by 2022. I think it's a significant event.
Interesting final paragraph from latest Twiggs
Can the Present System Evolve?
Are we likely to experience slow decay that Thucydides predicted? The present system is entrenched and likely to resist any attempts at reform. Evolution, however, does not occur in small increments. The norm is quite the opposite, with species enjoying long periods of stability followed by violent change when threatened with extinction. The current GFC presents just such an opportunity for change. The Tea Party movement, for example, is attempting to re-define the way that the system works, while I am sure that there are many Democrats who mistrust the motives of Washington.
If they fail to succeed, there is bound to be a next time. And probably sooner than we think.
The state that separates its scholars from its warriors will have its laws made by cowards, and its fighting done by fools.
~ Thucydides (c. 460 BC – c. 400 BC).
Twiggs beautifully succinct
Worth passing on to friends IMO
http://www.incrediblecharts.com/tradingdiary/2011-...
Just back from 3 wks in Nederlands, Switz, Italy, France. All appears calm on the surface. Behind the curtain, I wonder why the roof didn't cave in given current situation, but Twiggs article explains the mechanism well. The dance continues until the weight collapses all, then we clean up and start again. The infrastructure will survive. The key is to preserve and grow wealth until the "event", and somehow hang onto it to live into the succeeding regime.
Re Germans end nuclear....another example of not public good but anything to get re-elected.
Re: Twiggs beautifully succinct
re nuclear/Germany, I expect the Chinese, with no need to get re-elected, will stand by their commitment to nuclear. Other large economies, facing extreme inflation, like India, will as well, I believe.
Re: Small cap Chinese stocks
Only speaking for myself, I exited Chinese small-caps in February after the China Media Express (CCME) fiasco. While I believe there are still opportunities in China, I feel that the risk is a little too much for my tastes. Also I got tired of the manipulation as it got to the point where I didn't know what information to believe. It all added up to a quick exit with some acceptable losses.
Since then I noticed that three of my holdings are below $3 a share - China Agritech (CAGC) (bought in at 9) and China Sky One Medical (CSKI) (bought in at around 6); the aforementioned CCME is listed with a value of zero. Yes - I sure can pick em'.
I'm a lot happier with good old American blue chips.
Re: Small cap Chinese stocks
goldbug58,
There is nothing wrong with good old American/Canadian small caps either. But the issue is the same: which small broker-dealer and newsletter writer is sponsoring them; do they have a big firm audit; and are they assessed as quality issues by the larger Wall Street firms?
Also, your own risk profile and the amount of time you have for research/investigation are important factors.
BUSH ON THE ENEMY
ALOHA!!
Being somewhat reflective on Memorial Day and thinking about the man who pushed so hard to bring us the Iraq War ...
"Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we." -GEORGE BUSH, Washington, D.C., Aug. 5, 2004
LINK: http://www.youtube.com/watch?v=z8pvU1iyT3c
Total YTD(May 26) spent on Defense Vendors only ... $256BIL USD
That's $32BIL per month.
Total Greek debt=$476BIL USD
Total US Defense budget 2011=$680BIL USD
Total US Defense budget(DOD estimate)for 2012=$707.5BIL USD
Total Defense related budget 2012=$1.415TRIL
Defense related expenditures would include Homeland Security, NASA, Veterans, FBI, CIA, etc plus interest on debt for Vietnam War and Desert Storm and current wars in Iraq and Afghanistan.
You can see the DOMINO THEORY working on the Defense budget ...
Makes you wonder about priorities in America. It also makes you wonder how certain US politicians and bankers sleep at night as they squander America's most valuable asset ... its youth! The DOD never fails to identify a new Hitler du jour. So many Hitlers and so little time as "emergencies" are a dime a dozen now! Just reach in the hat ...
100 years ago: 1911 remembered
The year is 1911 --- One hundred years ago. Here are some statistics for the Year 1911 and a photo of a vehicle from that era:
The average life expectancy for men was 47 years. Only 14 percent of the homes had a bathtub. Only 8 percent of the homes had a telephone.
Fuel for cars were sold in drug stores only. There were only 8,000 cars and only 144 miles of paved roads. The maximum speed limit in most cities was 10 mph.(The Stanley Steamer pictured has done 65 on our modern highways - it is totally original).
The tallest structure in the world was the Eiffel Tower !
The average US wage in 1910 was 22 cents per hour. The average US worker made between $200 and $400 per year. A competent accountant could expect to earn $2000 per year, A dentist $2,500 per year, a veterinarian between $1,500 and $4,000 per year, and a mechanical engineer about $5,000 per year.
More than 95 percent of all births took place at home. Ninety percent of all Doctors had NO COLLEGE EDUCATION! Instead, they attended so-called medical schools, many of which were condemned in the press AND the government as "substandard."
Sugar cost four cents a pound. Eggs were fourteen cents a dozen. Coffee was fifteen cents a pound.
Most women only washed their hair once a month, and used Borax or egg yolks for shampoo.
Canada passed a law that prohibited poor people from entering into their country for any reason.
The Five leading causes of death were:
1. Pneumonia and influenza
2. Tuberculosis
3. Diarrhea
4. Heart disease
5. Stroke
The American flag had 45 stars. The population of Las Vegas, Nevada, was only 30!
Crossword puzzles, canned beer, and iced tea hadn't been invented yet. There was niether a Mother's Day nor a Father's Day. Two out of every 10 adults couldn't read or write and only 6 percent of all Americans had graduated from high school.
Marijuana, heroin, and morphine were all available over the counter at the local corner drugstores. Back then pharmacists said, "Heroin clears the complexion, gives buoyancy to the mind, Regulates the stomach and bowels, and is, in fact, a perfect guardian of health!" (Has pharmacology changed all that much in it's claims?)
Eighteen percent of households had at least one full-time servant or domestic help.
There were about 230 reported murders in the ENTIRE U.S.A. !
I am now going to forward this to someone else without typing it myself and post it here where it will be read all over the world by thousands of people simultaneously in seconds. I can upload these photos from my iPhone remotely right from the car show!
Try to imagine what life may be like in another 100 years. We could rediscover passive solar energy to dry our clothes outside, baking soda toothpaste, egg shampoos and growing our own food! (Some of us already have.)
Re: Small cap Chinese stocks
Sorry, I didn't mean to leave out the Canadian issues - currently I like the numbers on Canadian Imperial Bank of Commerce (CM) and Royal Bank of Canada (RY) - neither is hardly close to being a small-cap. I've developed a taste for quality in my old age, and I also prefer to see some dividend yield. The current quotes for both are near the 52-week highs, however.
NYC Photos I took today and wanted to share
Before I start cooking/grilling, wanted to share the views i took in today on bicycle.
USS Intrepid and a cruise ship in port on West Side NYC.
http://i54.tinypic.com/15pocc9.jpg
Luxury Azimut cruising north on Hudson. Trump properties in background.
http://i55.tinypic.com/htifs3.jpg
The building with the crane on roof is the new Freedom Tower. the large building to right is 200 West, home to GS and others.
http://i51.tinypic.com/1r9kxs.jpg
Direct midtown nyc view. At night you can see the LED lights shining up from Times Sq.
http://i56.tinypic.com/raszh5.jpg
Panorama shot 1. 90th-14th street approx
http://i55.tinypic.com/2n15l5g.jpg
Panorama shot 2. Hoboken/Jersey City far right
http://i51.tinypic.com/25i86ck.jpg
Re: BUSH ON THE ENEMY
"They never stop.........and neither do we."
Easy to say when your sitting in your private skybox at the superbowel or baseball game.
IMHO
Anyone collect silver coins here?
Just try to find someone who collect silver coins routinely. if any, please let me know.
thanks
Re: NYC Photos I took today and wanted to share
NYUGrad,
The 1st photo seems to be appropriate. I believe it's a Carnival Freedom class ship.
TAPS
For those who gave their lives or limbs. Thank you. T3d
http://www.youtube.com/watch?v=GkmeiDsxXRk&feature...
and
http://www.youtube.com/watch?v=KuZ5Xbt8-00
Re: Anyone collect silver coins here?
caonima, I have a jar full of pre 1964 silver U.S. coins and some partially filled silver coin books [ .10 / .25 / .50 / 1.00] from when I grew up.
greece's second bailout talks igniting prices
and pressuring the USD
http://quotes.ino.com/chart/?s=nybot_dx
same dance, same music. we have been here before.
you will start to hear once again from your brokers, "the worst is over"
Don't buy into the marketing.
Re: NYC Photos I took today and wanted to share
NYUGrad,
Enjoyed those pics. Flown into La Guardia several times with destinations on Long Island and also over NYC at high altitude, headed to Boston from Washington on clear days. Have only experienced the canyons of Manhattan once from street level by rental car. Impressive. I was not driving so could look up and admire.
Re: Small cap Chinese stocks
Yes, the capital destruction in the China ag's has been unbelieveable.. the same might be said for small cap bio's here in the US... I use to set a partial/full ' sell '( per IBD's lessons many, many moons ago ) at a 7 % drop from initial purchase price.. now, its more like 4 - 5 %.. The way they are walked down on small lots ( see GERN as latest example ) is beyond control. Almost the instant the volume multiplies upward, you can guarantee the quants will pull a body slam within 2 days ( use to be 3 )... I have pretty much quit posting ideas online, as things are way too dicey. That said, I think certain alternative energy equities will be acquired or merged ( per SPWRA ) as time passes. The idea of natural gas is being played heavily against these issues, but there will be room for both types of energy. I will always believe ' renewables ', in the long run, will have the upper hand. Mother earth created only so much, and there are some fascinating companies coming down the pipeline. I also believe the time is approaching for large scale adoption of individual renewable source application in concert with the commercial/industrial build-out. Per Bio's, The United States is light years ahead of any other country in research and results, so I will continue to seek out the up and comers... best to all.
Re: BUSH ON THE ENEMY
"Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we." -GEORGE BUSH, Washington, D.C., Aug. 5, 2004
Now I have to wait for Saturday Night Live to get something like this! LOL
Grym
Re: Anyone collect silver coins here?
I have a bunch my father-in-law began saving when it was removed from all new coinage, but seldom see any in circulation. I have not bought any silver. Duh!)
Grym