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Tactical Investing in the 21st Century. The FMAM Team is composed of seasoned Wall Street professionals with combined active experience on the buy side and the sell side of the Street. Together, we have worked as RIA's, managed BD's, banks, and mutual funds as well as proprietary trading desks.... More
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  • Earthquake forces Goldman to evacuate....
    Employees of Goldman Sachs departing the swaying building...
    Aug 24 1:47 PM | Link | Comment!
  • The Momentrix View of the Markets for Tuesday August 23, 2011
    Tuesday August 23, 2011- Wall Street experienced a huge “trend up” rally today, the S&P 500 closing up 3.4%. Although we do not think the worst is over, we respect the market move and out of discipline we removed our hedges. Our cash levels remain high in the model portfolio. The fact the market moved higher on a day when the CDS spreads were moving higher on both American Banks and in Europe is a major positive. It will be interesting to see in the coming days if these spreads reverse course. The major breakdown in gold, a move lower in the TLT and the Swissy (NYSEARCA:FXF) all do point to a lessening of the stress in the system.
    We finally saw the model portfolio stocks come alive, perhaps a sign of a more normalized market.  Leadership stocks are acting much better on the day as a return to fundamentals may be starting. The caveat is that the market is oversold and most stocks are extremely beaten down so a good day like this can lead to easy gains. Generally a time of extreme volatility like we have been through will not end with a day like today.  We will now watch for a classic O’neil “follow through” day before adding exposure. The bulls are embracing the technical hold of the latest lows amidst the failed rallies of the last couple of days. The market remains erratic and dangerous except for the most disciplined traders. It should be noted that the sharpest rallies do occur in bear markets and today’s move alone does not remove this possibility.
    Tags: FXF, TLT
    Aug 23 4:25 PM | Link | Comment!
  • The Momentrix View of the Markets for Monday August 22, 2011
    Monday August 22, 2011- The volatility continued on the street today. As the futures opened last night, the Libyan news hit the wires and the market yawned at the prospects of an end to the turmoil. Overnight the futures picked up steam as Europe opened and continued the momentum into the U.S. open, up as much as 200 points on the Dow futures. After a strong open, the market entered a basic trend down day, finishing at or near the lows, financials and energy being the worst performing groups on the day. The S&P 500 finished basically flat and the NASDAQ closed up 0.1%.
    We see this day as more evidence that we are no longer in a bull market. Failed rallies are a trade mark of bear markets and todays move adds another to a long list in recent weeks. The surge in gold, which has gone parabolic, is more evidence of stress in the system. Generally parabolic moves end badly for those that enter the game late and this time will likely be no different. The only events that could support this action would be a collapse of a major currency or a return to the gold standard, both of which could be on the table.
    Obviously the market is too erratic right now to warrant being fully invested. We remain on the defensive.
    Aug 23 9:38 AM | Link | Comment!
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