apppro’s Stock Room
A Twit’s Thread
In the 2016 election vote for:
Main Slogan: “It’s The Mentality Stupid”
A SHORT-term mentality does NOT build bridges.
A SHORT-term mentality does NOT create jobs.
A SHORT-term mentality does NOT create prosperity.
A SHORT-term mentality creates NOTHING, but uncertainty, fear, angst, and hate.
Main Principle: “It’s NOT how much you make, BUT rather how LONG it took you to make it!”
STOP the INSANITY NOW! - #StIN
Revised Capital Gains Tax:
1. Capital gains 10> years*_________5%
2. Capital gains 5 to 10 years*___________10%
3. Capital gains 2 to 5 years* **__________15%
4. Capital gains 1 to 2 years*____________35%
5. Capital gains 6 to 12 months__________45%
6. Capital gains under <6 months___55%
7. Windfall capital gains tax ____________65% on ALL SHORT SALES not directly tied to a long buy by a regulated hedge fund.
*Quasi Buffett Rule > Anyone whose main source of ‘income’ (retired persons excluded) that comes directly from capital gains, should be taxed at never less than the 1>2 year 35% rate—no matter what the cg term length.
** Dividends are taxed at this level—15%.
Main Saying: Don’t blame the Fed… it’s not their fault we allowed a few SHORT-term traders/traitors to use QE $’s to CREATE ‘put spreads’ INSTEAD of CREATING JOBS!
The 7 Golden Rules – Updated 03/29/2016
1. Immediately, reinstate the Up-Tick Rule.
2. Crack down on naked short selling. Require stock certificate #'s when a short sale needs to be covered, including ETF’s.
a. Stop the shorting of ALL ETF’s. This is just legalized naked shorting—makes no sense.
3. Institute some rules on how the media ’reports’ news in order to prevent rumor-boarding. Not censorship… just sensibility & responsibility.
4. Have ALL ETF’s trade on a 20-minute delayed basis. Get these instruments of mass destruction back to what they were supposed to do: mimic mutual funds. NO pre or aftermarket trading.
a. Allow companies to OPT OUT of any ETF. There is no reason why the issues of 1 company in an ETF should destroy all the other companies in that ETF!
5. End the insanity of high frequency trading #HFT. PULL THE PLUG NOW ON HFT! Note: Market maker algo’s are not the issue. The ABUSIVE algo’s written and run by hedge funds need to end—PERIOD!
a. ALLOW company BUYBACKS during entire trading day. IF we’re going to allow abusive #HFT algo’s to run at open & close then at least allow companies to FIGHT BACK!
b. ALL #HFT should be suspended 20 minutes after open and before close.
6. Do something – ANYTHING – to reign in the insanity and out of control gambling of the options markets. (Note: My StIN 55% Cap Gains tax UNDER 6 months would solve this!)
7. STOCK BUYBACKS: NO “blackout periods” for companies to buy back stock during earnings season or any other time. IF ANALysts can downgrade before earnings and shorts can abuse #HFT algo’s, then companies should be allowed to fight back!
Lehman’s Principle: The confidence destruction of an entire entity based on SHORT-term re-evaluation of LONG-term holdings due to unrestricted RUMORmongering and GANG-shorting! Basically, taking a 30-YEAR something and basing it on a 30-SECOND whatever! End Mark-To-Market M2M!
Truly the MOST disgraceful BUT truthful quote of not only 2012 but the last 10 years!
The Most DISGRACEFUL quote of 2012, so far!
The BEST quote of 2011
The Most DISGRACEFUL quote of 2011
The 2nd Most DISGRACEFUL quote of 2011
The Stock Room blog go to start
apppro’s take for 06/04/2016 03:30 pm EST
Normalize – Shoulda… Woulda… Coulda – Still Can!
OK those were some crappy job’s #’s on Friday. Even the prior ADP #’s showed a reasonable amount of jobs created. Something has got to be wrong with those government #’s and many pundits out there won’t argue that point at all!
Anyway, it’s been 8 years now of this really low interest rate “Emergency Rate” policy from our Federal Reserve; and well… ENOUGH ALREADY! Fine it worked for a while in the beginning, but as I wrote over 5 years ago “You can lead a horse to water, but you can’t make him take out a loan to get it.” All this monetary manipulation has done is to get other countries to do the same and several to go to the ultimate stupidity with negative interest rates. That will end VERY badly!
So we had 1 month of bad “government #’s” job growth. Did anyone look at wage growth or even that those same crappy #’s showed a 4.7% unemployment rate? Not shabby on either account. OK, things aren’t rip roaring ahead, but honestly all that rip roaring ahead does is create bubbles that eventually pop driving us all in the eventual circle of volatility insanity. Slow and steady really isn’t that bad you know. Want to create a little ‘animal spirits’, fine stop all the gambling on Wall St and let’s all get back to investing for LONG-term growth and prosperity. You know my tax plan fixes that, but slow and steady doesn’t make for good TV or get you ad up-front dollars.
What the Fed needs to do is get interest rates back to a normal level. Higher rates will cause a little more inflation and that’s what we all want anyway. But this will ONLY work if we get longer rates to go up too, and right now we have a group of hedgies that will fight tooth and nail to stop that from happening. TFB on them is what I say!
So what to do? Really not all that difficult.
Firstly, the Fed needs to get their overnight borrowing rate up to around 2% by the end of 2017. 2 increases this year and 3 to 4 next year will get it close enough. Slow and steady! Great but you ask what about the long rates? Here is the kicker – the Fed lost control of those in 2013 and NOW it needs to actively fix it, and again the solution is simple> Reverse Twist! The Fed every quarter should sell around $30 billion of those 10-20-30 year Treasury’s they have piled up (and right now they would make a huge profit on them) and BUY $50 billion of 1-2-3 years. This gets those longer rates up and adds liquidity to the markets at the same time they slowly raises rates. Easy Peazy!
This “Search for Armageddon” and nano second trading promoted by the media needs to end. “The good of the many, DOES outweigh the good of Jeffry Gundlach.” And oh, tell those “contributors” on CNBC to keep their fat mouths shut about the U.S. going to a 1%-1.5% 10 year! That crapolla just makes things worse! Stop kicking that box the cat is in and it just may come out alive!
apppro’s take for 05/23/2016 11:30 am EST
“The Gilded Age” OR was it really “Back to the Future” for TODAY’S 1%ers?
“Just had to laugh! I saw the photograph.” I was watching this fantastic PBS documentary on New York City architecture during the so-called “Gilded Age” – 20yr to 30yr period after the Civil War. The main theme was around Stanford White and his influence on HIGH END buildings in and around New York City. The gist was that the major expansion and growth that occurred after the Civil War fueled major and elaborate Trump type architecture – hence the “Gilded Age”. The REAL 1%ers – JP Morgan, Carnegie, Pierpont, etc. all funded elaborate homes, office buildings, and private clubs. Many of these masterpieces still adorn the New York landscape.
What really got me though was the reference on how much “inequality” there was. A VERY small percentage controlled all the wealth while everyone else lived in lower income poverty, struggling from day to day. Coupled with this was a comment: “the equalizing force was electricity”! I guess today they would say: “The equalizing force is the Internet.”
All in all a fascinating look at the past OR do I mean the present? “Back to the Future.”
apppro’s take for 05/19/2016 07:30 am EST
Kicking that Fed Box – the cat has NO chance!
Almost exactly 3 years to the day after Bernanke’s initial “Taper Tantrum” and when I wrote” Schrödinger's Cat—Looking inside the Fed’s Box!” on 05/15/2013 page 8, yesterday we got a quickie “Hissy Fit” over Fed Minutes that mellowed out by end of day. Things are looking somewhat non eventful this morning (Pajama traders took too much Ambient last night I guess.), but we still have Cramer to deal with in 2 hours and he can scream and rant about a stupid .25 basis point raise; and well that could throw everything into a true tantrum. Hey Cramer, “YOU KNOW NOTHING!” Also, try to remember that all those same talking head pundits that screamed back then that the Fed was nuts to raise, are NOW saying over and over: “They should have raised back then when they had the chance, now its too late!” Self-serving hindsight is a wonderful thing, isn't it!
I’m not living in some kind of “Secret Lives of the Ultra Rich” hole! I know things are not that great out there, but I also know that the world is not ending and this moronic “Search for Armageddon” by a handful of Fast Money Traitors and George Soros is also NOT going to happen. Well, at least that is “IF” we don’t allow it!
Now this morning we have Forex traders going nuts and this is killing the recovery for oil and other commodities. But mainly what we have is a media, mainly CNBC, that keeps pushing the fear mongering and volatility. Pundits and so-called “contributors” will come on their programs all day long spewing their fear and every time they do – HFT seeker bots hear the keywords and BAM – Mini Flash!
All this self-created volatility just so option traders can make a quick 300% gain on something that contributes NOTHING to the REAL economy is INSANTY! Note some of my tax proposals will help cut back on all this useless gambling which is NOT Main St helpful.
Since 2009 I kept asking in relation to the volatility and misery of crashing markets: “What have we learned?” You may remember that my answer then and NOW remains the same:
Not a damn thing!
apppro’s take for 05/17/2016 02:30 pm EST
And the “HISSY FIT” starts!
I guess that hissy fit I mentioned earlier just started over these Fed comments:
You can reference them clearer on TradersCommunity
apppro’s take for 05/17/2016 10:00 am EST
The MOST critical comment on rates yet!
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