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Chad Humphrey
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Military Operations in Financial Markets. In the summer of 2010 using military & mathematic strategies described, Chad created a algorithmic strategy for an investment advisory firm in Denver. In late September the algorithmic strategy was employed across the advisory firms portfolio in... More
My company:
Strategic Options, LLC
My blog:
Strategic Options Insight
  • Activate The Printers, It's Time To Make Some Money!  0 comments
    Jan 24, 2012 8:02 AM | about stocks: GS, SHLD, SPY, SH
    bomb markets explosive s&p 500 markets
    Tomorrow commences the two-day central planning conference or better known as the Federal Open Market Committee meeting. The American economy holds it's breath as we wait for 12 men and women to decide, how much money the United States Government is going to print, not print, buy back bonds, sell bonds, or the next version of the ponzi scheme it can devise. If you really think about it, how can you say that this isn't a centrally planned economy? If Bernanke prints more money, the market will go up (probably) and he doesn't print more money stocks will go down (probably). No longer does anybody care about valuations or actual growth, it's all about the Fed keeping the economy a float.

    Just look at my good friend Eddie Lambert. The last trading day before Christmas, Sears traded at $45.85. On 12/27 Sears announced was going to close 120 stores and a deeper-than-expected sales decline. The stock traded to a low $29.20 on 1/6/12. With some well place rumors, a little bit of algorithmic (robot) trading and a well placed short squeeze, the stock is worth more prior to announcing the bad news. If you are looking for a reason... look no further than here. (In the event this link doesn't work, drop this into google: "A Sears Wager Stings at Goldman". This is how to get around the WSJ pay wall, tell them Rupert sent you.)

    If you think that Goldman is going to sit on the sidelines and watch Eddie lose their money and their clients money you have another thing coming. Conspiracy? Not so much. When was the last time you where at a Sears? When was the last time you saw Sears in a good neighborhood? My point exactly.

    My guess for Tuesday and Wednesday trading will be light until the release of the FED decision 2:30 pm eastern time. If you think the FED is going to print, you might want to look at Goldman's Preview of the FED decision. If it's anybody that knows what is going to happen it's probably Government Goldman Sachs. Also keep in mind, of the 600 stocks I track 82.09% are signaling buy. Weather you want to be bearish or bullish, those numbers are dancing in the over bought category. With that said, you can always see where I stand on a position here.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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