apppro

What's the Fair Value for the Dow Jones Industrial Average?

Unfortunately there are many who feel that the gambling we have allowed to prosper in our markets is a legitimate way of adding liquidity into the market. BULL--IT!!!! The ones that think that all that trading and market manipulation is good for companies and our Nation as a whole, can only be the ones that fight tooth and nail every time someone wants to limit their insanity. Some even claim it's 'trickle down' economics. Really should rename that to 'pissing away' economics!

Just go 2 comments above and you'll see the real insanity. TAX these short-term option traders/traitors up the ying-yang and maybe they'll stop.


On Nov 02 12:54 PM logicalman wrote:

> jim bob jones.....a lot have done exactly what you are saying, and
> most of them have lost their shirts....decide for yourself whether
> you are an INVESTOR or GAMBLER..if the former, do your homework and
> with an average iq. you will do well, if the latter, go to VEGAS,
> your chances will be much better there!!!

What's the Fair Value for the Dow Jones Industrial Average?

Thank you for proving my point!


On Nov 01 09:59 PM Jim Bob Jones wrote:

> So, let's all hold long term and give Wall street another chance
> to drain our piggy? I do'nt think so! Trade short term , follow the
> trend and protect your wealth unlike the so called knowledgeable
> banks and brokers.

What's the Fair Value for the Dow Jones Industrial Average?

<<So why would any reasonable investor want the government to have further sway in their financial well being?>>

Our government screws everything up, that is for sure. However, we must deter or even stop all this short term trading and the mentality behind it. It produces NOTHING and saps the financial strength out of our economy. Without regulating anything, except hopefully our behavior, decreasing tax rates to promote long term investing and vice versa - we can only think that it would help reduce the insanity. The IRS got Capone, let them go after the other traders/traitors.

On Nov 01 09:44 AM Walt17 wrote:

> I do not agree with that!
>
> Your suggestion implies that you want the government to control how
> we invest. Our government has not given me any reason to believe
> that letting them dictate my trading strategies would be to my best
> interest.
>
> Whether you’re a Republican or Democratic - What must end is the
> notion that government can make everything better. They have repeatedly
> demonstrated an inability to do that. So why would any reasonable
> investor want the government to have further sway in their financial
> well being?
>

What's the Fair Value for the Dow Jones Industrial Average?

What happened this week is just another and perhaps best/final case into why we must stop this short-term option trader/traitor mentality & trading. I’ll be the first to admit that maybe the DOW and S&P have as some have complained, “Gone too far in too short a period of time!” Without going back to my original argument that they’re basing that moronic statement on a level we should have NEVER been at in the 1st place, let’s just say that maybe the markets have gone a little higher then maybe their actual worth is based on. As to whether the DOW or other indices are fairly valued, I give your opinion above worth noting.

For me I take a far longer view. We’ve taken out all the added fluff that they say was added with all that leverage since 2004, and actually we’re even back to 1999 levels. Fair? Doesn’t sound fair to me, but that’s what we allowed to be done.

Just look at this past week’s chart of JPM Chase.

finance.yahoo.com/echa...;range=5d;indicator=vo...

Monday and Tuesday were ok and non-events on no news. On Wednesday the entire market sold off at the open and never recovered. The news again was really a non-event, but some media pundits & traders/traitors brought back that ‘double deep’ crappola and fear spread throughout. Thursday reality set back in when GREAT GDP and just ok employment #’s came out.. the markets recovered, but those traders/traitors couldn’t let it go. CNBS had a parade of naysayer pundits on the show Friday morning and when basically so-so spending and income numbers came out at 8:30 am (These numbers were exactly as expected and should have been a non-event.) the short-term option traders/traitors had worked everybody up into a sell-off mode and things never looked back. 250 points down on the DOW and major levels breached. It was a pure disgrace. They tried to blame it on the dollar, on the consumer, on anything they could grab a hold of; but when it comes down to it, the sell-off was a well orchestrated, end-of-the-month options traders/traitors manipulated disaster.

You may ask, “Why should I care? I’m not in the market or I own mutual funds, why should this matter to me?” It matters because you may be one of those lucky people who still has a job, or one of those still trying to find one... all these swings and angst are not healthy. They make everyone so full of fear and uncertainty that no one can muster up the desire to spend, invest, invent, inspire, etc. And don’t make the mistake of thinking that CEO’s of big companies are any different. I told you before, you keep bashing someone over the head over and over; sooner or later they will break! This is especially true of small businesses, the major driver of employment in the U.S. Would YOU spend thousands or go into debt to start a new business if every 5-minutes someone else is telling you that everything will crash in the next 10-minutes? I don’t think so!

Whether you’re a Republican or Democratic, whether you’re a capitalist or socialist, whether you’re a ying or a yang; we MUST ALL start to agree upon ONE THING and that is this short-term mentality and trading MUST END!

STOP THE INSANITY NOW!

Revised Tax Rules:

1. Capital gains under <6 months - 55% tax on capital gains
2. Capital gains 6 > 12 months - 45% tax on capital gains
3. Capital gains 1 > 2 years - 35% tax on capital gains
4. Capital gains 2 > 5 years - 18% tax on capital gains
5. Capital gains 5+ years - 5% tax on capital gains
6. Most critical of all — Institute a capital gains tax of 55% on ALL short sales not directly tied to a long buy by a licensed hedge fund. I'm tired of paying for the pure shorts 3rd vacation home.

Is JP Morgan Too Big to Survive?

Criticize who and what you want, but one thing is for sure: there are way too many pundits out there who come up with all these contrived scenarios for Armageddon; BUT at the same time have no concrete proposals for building our Nation and society.

I stand by my earlier blog.

Is JP Morgan Too Big to Survive?

Couldn't get a regular job, so you decided to make these extravagant and complicated blogs instead?

Get a life!

Monday Options Update: SAY, UNG, DVN, BJS, AXP, & IP

I graduated (albeit 50 years ago) with a math major, but I still find all the above to be jibberish. Fine, there are plenty of people out there that get this kind of trading and I say that's OK - let them do it.

BUT by any stretch of the imagination this isn't investing - RATHER IT'S GAMBLING AND SHOULD BE TAXED LIKE GAMBLING - 50%.

Banking on Banks: Detailed Option Strangle Strategy

These types of trades & trading are actually what is 'STRANGLING' our markets and society as a whole. All this options trading has turned into a ponzi gambling scheme that will crash our system and adds NOTHING now. They say it adds liquidity - BS! If anything all that money being thrown about on ultra short term trades is NOT being invested on long-term basis.. it actually takes money OUT of the pool and contributes NOTHING to our economy - ever.

We need to figure out a way to stop all this insanity and not come up with new methods on how to make it worse. I am still convinced that the best way is to TAX these trades as if they were gambling wins somewhere around 50%. That'll stop it, and even if it doesn't it will help pay for the mess all these trader's/traitor's insanity cause.

Closing Update for Monday, August 24: Markets Essentially Flat

at 1:00pm a major short sell program ran thru the entire market. i can show u chart after chart in many different sectors that showed an immediate and drastic sell off.
don't kid yourself into believing that black box program trading has gone away. SkyNet lives and if we don't fix this options-flash-short traders/traitors this will all very badly just like it did in March.

AND IT WILL HAVE NOTHING TO DO WITH REALITY OR FUNDAMENTALS BUT RATHER JUST A BROKEN MARKET OF GAMBLERS AND NOT INVESTORS.

Are Financial Stocks Especially Overpriced? Some Protective Ideas

Here's another idea:

Turn off CNBC!

'Green Shoots' Not a Phrase Used by Those Who Know

Yes, we have a probleb, but you don't get what the problem is! We are allowing, no encouraging a handfull of shorties to bring things down with no retribution or consequences.

Tax Capital Gains of short sales at 65% and you'll see how fast things get better.

Follow the money!


On Jul 13 01:03 PM Fitz919 wrote:

> Today CIT Group is crumbling. It's the biggest thing since WaMu if
> it collapses, and the market and financials are rallying over a banking
> sector upgrade, and the exact same person is saying unemployment
> will reach 13%.
>
> Houston we have a problem!

'Green Shoots' Not a Phrase Used by Those Who Know

And just to show my point here is a release this morning on how it's which business you ask:

finance.yahoo.com/news...

<<AMSTERDAM (Reuters) - Dutch conglomerate Philips Electronics (Amsterdam:PHG.AS - News; NYSE:PHG - News) signaled brighter business prospects for the second half of 2009, helped by cost cuts, as it surprised the market with a return to profit in the second quarter.>>


Enough is Enough!!!!!!!!!!!!

'Green Shoots' Not a Phrase Used by Those Who Know

Whether you use the terms ‘green shoots’ or ‘less bad’, the one thing everyone does seem to agree upon is that Armageddon is no longer on the horizon and we are looking at a recovery, albeit a slow one. Fine, I can live with that! I’m not going to get into WHY all this short inspired chaos happened, let’s just except that as history and move on.

As far as the examples you used to show that things still stink:

Buffett: Maybe it’s HIS businesses that stink. From what I’ve read it appears that only Geico has a following anymore and that Fruit of The Loom has no green shoots sprouting. Maybe mold though.
Pimco: Keeping things in the toilet benefits their bonds and their bottom line. Enough said on that one!
American Express: I saw his interview and I totally don’t agree with how you (CNBC) interpreted it. Besides, after the media and pundits have bashed him over the head, how can anyone expect a CEO like that to stick his neck out? He said things have stabilized and looked for a recovery next year. Maybe he’s being overly cautious, but he did use the terms stabilized & recovery!

The main point here is that if we allow things to heal they will. Not 10 minutes from now, but in the very foreseeable future. Human nature being what it is, by constantly beating everyone over the head with this negativity no one is ever going to spend a nickel again and recovery may be for my children’s children.

Enough is Enough!!!!!!!!!!!!

How Are Soros and Paulson Trading?

What a joke! These 2 guys along with Ackman, Einhorn, Tilson, and Chanos manipulated & abused M2M thru rediculously contrived scenarios in order to totally destroy our entire fiancial system. Now they're saying, whoops we were wrong so let's buy all up all these banks and credit companies.
When is everyone going to realize that these shorties caused this mess and all we can do is give them a big pat on the back?
Deplorable! Just deplorable!

Banks Curtail Lending as Rising Credit Card Delinquencies Loom

In the beginning (sounds like a fairy tale doesn’t it) you praised/enabled all those banks for making housing and TV’s easy to come by for ALL Americans. The American Dream? Then you chastised all those banks for making so many bad or poor quality loans. You even caused many to go under because of your condemnation.

NOW you complain when they pull back on all that loaning and easy credit access!

MAKE UP YOUR FRIGGEN’ MINDS ALREADY!!!

LOL