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The Stock Room page 21 |
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_______________________________________ apppro’s take for 01/14/12 @05:30 pm EST Creative Destruction – the bane of the capital markets? Creative destruction (CD) quick review: Creative Destruction Definition | Investopedia Basically, the main premise of CD is for some outside entity to take apart a broken or obsolete business, and leave a more vibrant and successful one in its place. What the infamous Gordon Gekko was doing in his famous “Greed is good!” soliloquy. Over the past week or so, we’ve been bombarded by media after media report about how one of the presidential candidates participated in one of these venture CD capital companies. The opinions of whether or not this person & this form of capitalism serves a greater good are all over the spectrum. Some love it – some hate it – most just don’t understand it! There is also no real truth to the idea that only Republicans practice it. You just need to look at what the current President did when he practiced in the most intense form of CD ever, when he had his administration take apart and then reform almost the entire auto industry thru GM and Chrysler. But no matter how you come down on this issue, the underlying precepts that I feel everyone can agree upon is that ONLY LONG term history will be able to judge whether ANYTHING that was left was better than what came before it. AND with this one sentence we have the true essence of our collective dilemma! 1. Only LONG-term HISTORY will judge the success of CD, and 2. That SOMETHING (better or not) was left in its wake. On the 1st point: No one in their right mind can think that history is a 9-month period or even a 6-month period and certainly history isn’t a nano-second HFT period. “It’s The Mentality Stupid!” and no matter whether you think CD is a good thing or not, no reasonable person can continue to think that all the SHORT-term equity and option trading serves ANY good what so ever. IT DOES NOT! On the 2nd point: What Gordon Gekko left behind was at least something. He took apart companies – broke them apart – sold off the crap – and at least his kind of capitalism left a more viable company in the wake. BUT TODAY THAT IS NOT WHAT IS HAPPENING! Today, we have a select group of SHORT hedge funds that are DESTROYING just for the sake of destroying; and for no better reason than to cover their short positions. Their actions LEAVE NOTHING IN THEIR WAKE – NOTHING! SQUAT! I truly believe that capitalism is the best of all alternatives by far. No one has come up with a “Imagine” type of economy or society, so for now ours seems the best of all evils. HOWEVER, we have allowed a few to abuse that system and to set us all at each other’s throats. is really the biggest horror, is that we have elevated these destroyers to a hero like status and then have thrown the blame and ridicule on everything & everyone else. We must ALL end this SHORT-term thinking and trading! We must ALL get back to LONG-term investing and growth! Truly everyone: “IT’S THE MENTALITY STUPID!” STOP the INSANITY NOW! The 5 Golden Rules In the 2012 elections vote for: _______________________________________ apppro’s take for 01/12/12 @08:30 am EST Question: How Does this Serve ANY Public Good? Answer: IT DOESN’T! There used to be a time when ONLY real traders were buying and selling commodity futures in order to promote the natural flow and sale of natural gas, or any commodity for that matter. NOW, what we have allowed to happen are a bunch of hedge funds thru ETF’s to nano-trade the things we eat (corn) and drink (OJ) and use for energy (oil & NG) as some sort of gambling play toy. These traders/traitors have no intention to use their trades for anything but SHORT-term profits. They have no intention of actually using their gambling to help promote the product in anyway whatsoever! HOW THE HELL DOES THIS SERVE THE PUBLIC GOOD? Some will say that the current demolition of NG to $2.75 is good, but it wasn’t so long ago that the same group of crooks drove the price to $15.00 – remember Enron? Pay close attention to the highlighted segment.
DJ OPTIONS REPORT: Natural Gas Tumble Prompts Bet On ETF Swings Wed Jan 11 18:52:04 2012 EST --Natural-gas futures sink to two-year low --Options bet profits from a big swing in shares of the United States Natural Gas Fund over seven months --'Straddle' buyers scoop up July $6 puts and calls; shares close at $6.01 By Chris Dieterich Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Natural gas prices slumped to a more than two-year low Wednesday, sparking one big options bet on continued choppiness in natural-gas prices through the first half of the year. The selloff in natural-gas futures, which fell to a 28-month low, was sparked by revised weather forecasts pointing to warmer winter across the U.S. Natural gas prices are being squeezed from both ends. A warmer-than-expect winter has chipped away at demand; at the same time, a recent production boom from U.S. shale has stirred oversupply and weighed on prices. In the options market Wednesday, traders set up positions in the most popular ETF that tracks natural-gas futures, to wager on protracted natural-gas price volatility. Overall options volume in the United States Natural Gas Fund L.P. (UNG) jumped was three times the daily average, the heaviest in a single session since last September, Trade Alert data showed. Wednesday's options volume was driven by a strategy set up by a strategist who profits from a major swing for shares in either direction. The trader bought a large number of both $6-strike put and call options that expire in July, according to strategists at Susquehanna Financial Group. Put options convey the right to sell shares for a set price by expiration, while calls give the right to buy shares. When purchased together, a play known as a "straddle," traders profit from a big swing either up or down. Together, the trader paid a total of $1.31 for each of 3,000 contract pairs, and the trade works best should shares of the UNG close above $7.31 or below $4.69 at expiration in the middle of July. UNG fell 32 cents, or 5.1%, to close Wednesday at $6.01. -By Chris Dieterich, Dow Jones Newswires; 212-416-2611; christopher.dieterich@dowjones.com (END) Dow Jones Newswires 01-11-12 1852ET _______________________________________ apppro’s take for 01/06/12 @10:00 am EST Steve Case Endorses ‘STOP the INSANITY NOW’ Did I hear Steve Case of AOL fame right this morning on CNBS? Did he just totally endorse my STOP the INSANITY NOW tax plan by saying:
Here’s the full interview, but the above is ALL you need. Thank you very much! _______________________________________ apppro’s take for 12/31/11 @09:00 am EST New Verizon iPhone app 2.00 crashes!
_______________________________________ apppro’s take for 12/30/11 @08:00 am EST New iPhone app – Verizon 2.00 Is NO ONE else pissed as hell over this?
_______________________________________ apppro’s take for 12/29/11 @08:30 am EST “It was the Worst of Times….” I just totally disagree with every part of that, EXCEPT when we get garbage like this: Can Bank of America Survive a 'Run on the Bank' in 2012? - TheStreet It just makes me vomit and I had to send an email to our SEC. “Dear SEC, I have written to you several times now about how Jim Cramer has been using his media bully pulpit to constantly call for either unknown & unsubstantiated bank failures, or for the entire European bank system to have run on their banks, or for various other hysteria and unconfirmed rumors that called for nothing less than runs on a bank or other Armageddon scenarios. I understand that Freedom of the Press is a major Constitutional issue, but there are or should be rules on what rumors/speculation/biased views or whatever you want to call them someone can write. This is especially should be true for people who are supposed to be guiding our financial markets and easily influenced/manipulated markets. This article today has totally gone over any line that I feel you should allow. Can Bank of America Survive a 'Run on the Bank' in 2012? Yours truly, XXXXXXX” Nothing will happen, but I still must fight the fight… windmills and all that! BTW, the scarecrow sent me a link to a fabulous article; you should all check it out. America's Greatness Will Defeat Obama _______________________________________ apppro’s take for 12/28/11 @06:00 pm EST The Search for Armageddon! OK, what was the cause for today’s low volume 145 point loss? The flavor of the day is that Europe is going to collapse – AGAIN! Wait a minute, didn’t Italy actually go ahead and sell a bunch of bonds at very low interest rates, and so what’s the issue with that? Italy’s Borrowing Costs Decline at Auction After Government Agrees on Cuts - Bloomberg Nothing at all, except that the naysayers can’t have something good anywhere about anything. This is all is getting out of control! This call for Armageddon Revisited when things are finally showing signs of recovery is just a total outrage. “When will we ever learn?” The ONLY good thing about today’s action was that ‘useless gold’ was down another $40.00.
STOP the INSANITY NOW! The 5 Golden Rules In the 2012 elections vote for: _______________________________________ apppro’s take for 12/19/11 @06:00 pm EST “Where have all the investors gone, long time lasting! Oh, when will they ever learn?” After a day when HFT traders/traitors decided to instantaneously tank the markets by yanking ALL buys out of the Dow futures causing a massive downdraft at 3:02 pm
we get some insight into the madness.
People… we are destroying ourselves here! (Continued on page 22) |
