What the FED doesn't want you to know.

Visit msnbc.com for Breaking News, World News, and News about the Economy

QID

Bought a position of QID PROSHARES NASDAQ ULTRASHORT at $27.14. Stop at $26.80.

John Stewart takes on Goldman Sach's

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Pyramid Economy
www.thedailyshow.com
Daily Show Full Episodes Political Humor Joke of the Day

WNR

Bought to close WNR JUL7.50 PUT @.85 for a LOSS. Just rather buy them back at close to par today and take the loss. I don't know what next week could bring.

Are you kidding me? Housing starts are up. Thats insane!

This can not be good:

July 17 (Bloomberg) -- Housing starts in the U.S. unexpectedly rose in June as construction of single-family dwellings jumped by the most since 2004, signaling the market is stabilizing. The 3.6 percent increase brought starts to an annual rate of 582,000, the highest level since November and followed a 562,000 pace in May that was higher than previously estimated, the Commerce Department said today in a Washington. Building permits, a sign of future construction, rose the most in a year.

"Signaling the market is stabilizing" That is insane!!!

How can building more houses be good for the economy? We have so many houses in foreclosure and so much available inventory. This is foolish. I think building more in this current financial crisis is criminal. It will bring down housing values further, destroying equity (whatever is left) for most people. The lenders are behind this taking money from the discount window at 0% basically and lending at 5, 6, 7 or more percent. If the loans fail, there is still 'plenty' of TARP money available. That way we can see more banks, etc make $3-4 billion/quarter, while the taxpayer gets fleeced.

I get sicker by the day.

The Real Price of Goldman's Giganto-profits

I am on a rant today about Goldman Sachs...Sorry.

The Real Price of Goldman's Giganto-profits, Matt Taibbi - Click for some entertaining reading.

Another must watch: Glenn Beck explains the Goldman/Federal Gov't connection

This is a must watch video. Goldman Sachs has got their fingers into everyone's arse in Washington and their whole hand in our pockets.

Max Keiser takes offense to Goldman Sachs story

I love this. Watch him go off on Goldman Sachs.

Part 1



Part 'Deux' 2

Green shoots or no green shoots. Behind JPM's number with David Faber.

About 2:30 into the video, look at the charts he pulls up. See the green shoots there?

Morning Joe 7/16/2009

U.S. Jobless Claims Slump, Reflecting Timing of Auto Layoffs (Bloomberg)
Foreclosures rise 15 percent in first half of 2009 (AP)
CIT Calls Bailout Unlikely, Fuels Bankruptcy Concern (Bloomberg)
JPMorgan Profit Rises 36 Percent, Beating Estimates (Bloomberg)
Treasury Bets U.S. Financial System Can Weather CIT Collapse (Bloomberg)
China’s Economic Growth Accelerates to 7.9% on Loans (Bloomberg)
Talks fail to break California budget crisis (Reuters)
Commercial Real Estate crash would cripple U.S. Banks (Huffington Post)


Bank of America Corp - The biggest U.S. bank by assets said net charge-offs on its credit-card trust rose to 13.86 percent in June from 12.5 percent a month earlier.

What Wall St Owes You

Watching Goldman: BNN speaks with Janet Tavakoli of Tavakoli Structured Finance.

No holes barred on how she feels about Goldman Sachs and government.

http://watch.bnn.ca/squeezeplay/july-2009/squeezeplay-july-15-2009/#clip193973

SUN

Bought SUN AUG22.5 PUT SUNTX $1.15 for protection. Order filled.

Original post on trade: Click Here

How about Charlie Gasperino vs Goldman Sachs - He gets booted by GE

Elliot Spitzer on Bloomberg - Goldman Sachs

Backlash against Goldman Sachs-MSNBC

Visit msnbc.com for Breaking News, World News, and News about the Economy

Budget Deficit tops $1 trillion for first time.

Budget Deficit tops $1 trillion for first time. (AP News)

This goes along with the email I sent yesterday.

SUN

Bought a position in SUN @ $22. There are bullish divergences on the stochistic, MACD and directional. The refiners have been way oversold.

I have placed a stop at $21.45 which was Wednesday's low (07/08). Looking for a target to $26. Adjust stop to $24 if we reach $24 or higher to lock in profit.


CLICK CHART TO ENLARGE

SPY

Sold to close position SEPT SPY88 PUTS SZCUJ @ $5.15 for 18% GAIN.

SPY

Bought to open half position SEPT SPY88 PUTS SZCUJ @ $4.35. Will add other half if we close again below 200 moving average. This is an insurance policy in case of a drop down to $85.00ish within the next couple of weeks.

SRS

Bought to close all SRS AUG18 PUTS @ 95 cents for a 18% GAIN on the close.

Just felt like covering my position and will look for possible re-entry later in the week.

Statement by Chairman Gary Gensler on Speculative Position Limits and Enhanced Transparency Initiatives

Below is a link of the CFTC's initiatives regarding commodity futures. This might change the way ETF's are traded. We will wait and see.

• http://cftc.gov/stellent/groups/public/@newsroom/documents/pressrelease/genslerstatement070709.pdf

UNG

UNG - US Natural Gas Fund has been halted. Look at the volume in June. That could explain the halt.

From prospectus:

• Liquidity Risk - The risk that the market cannot accommodate an order to buy or sell a security in the desired timeframe, or the risk that trading on a stock exchange may be halted because of market conditions.

Issuing more shares: click here for news link

UNG

UNG Halted

Mid-day News Update

Big banks don't want California IOU's (WSJ)
Oil, Gas Market Speculation May Face Restrictions (Bloomberg)
Delinquencies on Home-Equity Loans Reach Record (Bloomberg)
U.S. House May Include Surtax on Wealthy in Health-Care Package (Bloomberg)
Alcoa's Kleinfeld Say Aluminum Usage Recovering in China, U.S. (Bloomberg)
U.S. must be open to second economic stimulus: Hoyer (Reuters)
U.S. consumers fall behind on loans at a record pace (Reuters)
Banks don

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• Get ready for an Asian spending wave (money.cnn.com)

SPY

Sell to close SEP SPY90 PUTS SWGUL @ $5.20 for a small GAIN. $$

Underlying: getting gummed up here; hitting major support at the Daily 200. Will re-evaluate towards end of day for entry again.


I am still net short the market with SRS naked or cash secured puts and GS PUTS. Just want to see how this head and shoulder pattern will play out.

More NYSE and GS shinanigans...ooops!!!

"We Screwed Up" (ZeroHedge.com)

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• Taibbi: Impending Rule Change Means Goldman Sachs Stock Manipulations Can't Be Tracked (crooksandliars.com)

SRS Trade Update

UPDATE:

Order filled.

Sold to open SRS AUG18 PUT SAKTL @$1.10 . Added more for a position avg of $1.17.

Link to original post: Click here.

Mid-day News Update

• Bail set at $750,000 for ex-Goldman Programmer (Reuters)
• U.S. ISM Service Industries Index Increased to 47 (Bloomberg)
• World Bank tells G8: 2009 remains a dangerous year (Reuters)
• Bank of America Writeoffs May Rise 10%, Analyst Says (Bloomberg)
• Earnings Drop Worldwide as Job Losses Hurt Consumers (Bloomberg)
• Microsoft Plans for Worst as U.S. Companies Show No End to Fear (Bloomberg)
• Florida Aided Allen Stanford, suspect in huge swindle (Miami Herald)

SRS

Looking for a naked or cash secured put position on SRS AUG18 PUT SAKTL. I have an open order at $1.10. I will update if filled.

SPY

Buy to open a position SPY SEP90 PUT SWGUL @ $4.85. Order filled.

Underlying Targets:
Target of $87.00 then re-evaluate
Stop of $90.50

I did this based on the weekly chart indicators as general downside protection and hedge for naked or cash secured positions (excluding SRS PUTS).

A Goldman Sachs trading Scandal?

Check out the links for a breaking news story on a possible Goldman Sachs trading scandal. This could reveal the Goldman's trading methods and programs.

Click one of the links below:

ZeroHedge.com
Reuters
CNBC

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• Goldman Sachs: The great American bubble machine (seattlepi.com)
• Taibbi: Impending Rule Change Means Goldman Sachs Stock Manipulations Can't Be Tracked (crooksandliars.com)

7 more banks fail as FDIC mulls rules for sales

7 more banks fail (AP)

Matt Taibbi interview after the Goldman Sachs article he wrote

Below is the link for the Matt Tiabbi interview conducted on BNN.ca

http://watch.bnn.ca/the-close/july-2009/the-close-july-2-2009/#clip189690

Extended Trading

NYSE extending trading until 4:15pm today.

Employment Data or should I say Unemployment Data

Today's unemployment numbers I think are going to look good compared to what the picture will look like down the road. Another 467,000 jobs cut and an unemployment rate of 9.5%.

There are many factors helping push the unemployment number higher:

• High gasoline prices
• High food prices
• High debt load costs
• Extremely high health care costs...which gets worse with more lay offs
• Higher property tax rates despite lower housing values. Mine went up over 30% in the last 2 years.
• High college tuition
  
• High utilities (electricity, water, etc). Some areas have experienced about a 100% increase in water costs.
• Higher sales tax rates
• Higher etc, etc, etc......

You ask how this will make things worse? The average American is getting squeezed to the limit. They are buying necessities only and have literally stopped buying the bubble creating items that started all this mess (housing, furniture, tvs, disposable cars, easy credit). An example: my trips to Sam's Club. I used to see at least 1 flat panel TV being pushed through the checkouts almost every time I went. Since the beginning of the year, I honestly don't think I have seen one being sold. I average about 1 trip a week.

Driving around Houston, I see many shopping center strips 100% empty and very dead mall parking lots. These are all signs of uncertainty by the consumer and business owners. Keep in mind, Houston has been relatively immune to the big downturn experienced by other major cities.

There are too many un-sustainable jobs. So many jobs that were created in the last 10 years are jobs that supported the bubble creation. Now that the consumer is retrenching, paying off the debt created by the bubble, and buying only the necessities, these jobs are in jeopardy.

This bubble is so big that it will take much more than a 'microwave' fix. The commercial real estate problem that is around the corner will not get the support from the government as the housing problem did. Fist of all, the Government is tapped out. Secondly, the public is sick of bailouts. Third, banks will have to adjust commercial mortgages down to reasonable levels or risk losing the whole mortgage. There will be large write-offs that could be devastating.

Many local municipalities based their budgets on the inflated property values. Well guess what, we are seeing many that could fold soon. Homeowner associations will feel the pinch as well.

I think all the problems will snowball until the average person gets their balance sheet in positive equity and we return to pre-bubble circa mid '90s. There will be a lot of pain, but that is the reality we face.

I don't think we should be fooled by the 'green shoots' touted all day long on the major media outlets. More layoffs (public and private), downsizing, and small business closures could get us to a 12% unemployment rate easily by mid 2010.

Follow up on the Joe Saluzzi post

Here is a little weekend reading for you to understand the program trading that is going on.

Toxic Trading - Saluzzi

FLR

Sold to close the remaining position in FLR FLRVJ @ $6.20 for a 10.7% GAIN. Not much, but I will look to for a better trade.

Joe Saluzzi - I saw this yesterday and he talks about the market manipulation

I saw this yesterday and could not believe it. I follow Joe Saluzzi on Twitter and found the clip on YouTube. He talks about market manipulation and principal program trading. Guess who he is pointing fingers at? Take the time to watch the whole thing.

http://www.themistrading.com/

WNR

Now that Goldman Sachs lowered estimates on the refiners, I feel better about keeping my WNR cash secured puts. On a bad tape yesterday, the refiners did well. So my take is Goldman was buying as they downgraded. I think we will be OK on the JUL7.50 puts.