Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Freak Out Friday

Stock-Markets / Stock Markets 2010 May 14, 2010 - 10:20 AM GMT

By: PhilStockWorld

Stock-Markets

Best Financial Markets Analysis ArticleThe Euro fell below $1.25 this morning and the Pound plunged all the way to $1.45 as the new government of the UK gets the fastest "no confidence" vote ever delivered by the financial markets.  Keep in mind that only 36% of the people in the UK wanted Conservative leadership.  The Labor Party got 29% of the vote and further left Liberal Democrats got 23% of the vote with crazy parties getting 12% of the vote.  This is the problem with multi-party systems - MORE than half the people are unsatisfied with the result of almost every election. 


Thank goodness America avoids this kind of thing by having a one-party system that pretends to be a two-party system but every once in a while that illusion is totally blown as candidates switch parties as if their former ideologies were mere youthful dalliances.  Arlen Specter was only 70 when he decided to leave the Republican Party after 20 years as a Senator.  Specter has gone from voting with Democrats 16% of the time to voting with them 97% of the time during his current Senate term and the funny thing is he wonders why the voters don’t seem to trust him…

So if our country is run by two parties that have no soul, imagine how chaotic it is in England, where 3 parties vie for power and the far left and the far right are forced to effectively share the Ministry in order to get rid of the moderate.  And if that seems crazy to Americans, think of Germany, who have FIVE (5) major parties, three of which are different brands of Democrats:  Christian (yes America, Christians can be Democrats too!), Social and Free all of which are more conservative than the "Green Party" who are seen as more conservative than the "Left Party."  Personally, I’d be voting for the Pirate Party (pictured below, won 2% of the vote) on name alone - I’ll bet they have the best bumper stickers!

Only two countries as screwed up politically as England and Germany could come up with an idea as screwed up as the EU government, which is impossible to explain in a single day but can be summed up very simply by pointing out that it’s currently Spain’s "turn" to head up the Council, who’s 27 ministers form a bicameral legislative branch with the Parliament, who’s 14 Vice Presidents representing 736 MEP’s meet with Jerzy Buzek to guide consensus among the 7 major parties represented there.  Jerzy’s last real job was being Prime Minister of Poland back in 2001 (one term) and, while I’m sure running a nation of 35M people with a GDP of $650Bn for four years makes him more qualified than most - surely we’d like to have someone else steering the $15Tn, 500M population EU past the economic icebergs that lie ahead.

Der Spiegel has a frightening article this morning titled "The EU Could be Facing a Double-Dip Recession."  I know Cramer said you "don’t need to constantly obsess about Europe’s debt problems" but please - humor me and read this one…  Graph 1 (of 9) above shows our little piggies and the rest of the EU is scary too and, don’t forget, the UK is not in the RU and are worse than most!  In fact, there’s a new list of major worries that we will be keeping track of at PSW and those are France, UK, Ireland, Nukes, Greece, Spain, California, Russia, Eastern-Western Europe and Dubai - as soon as we come up with some sort of acronym using those letters, we’ll let you know…

OK, enough worrying about the silly Europeans and their crashing currencies (sorry Cramer), let’s see how the rest of the World is doing this morning:   Asia took a big dip this morning with the Hang Seng flopping 277 points (1.4%) and that was lock-step with the Nikkei (-1.5%) and the BSE (-1.6%) so we know computers are controlling the action over there as they simply react to our news.  Fundamentally, there are riots in Bangkok as another group of global citizens get as mad as hell and decide they are not going to take it anymore. 

I already sent out an Alert to Members this morning in which we chose to go long on the oil futures at $73.  Oil is now pulling back from $74 so a nice win there and we may get a chance to reload if they hold $72.50 (they should).  I had said to Members in chat yesterday "What on earth makes you think they are being truthful about the size of the spill?" and, sadly, it turns out I was right not to trust our Government (not trusting BP was a given) as estimates are now that the spill is 5-20 times more than reported, already approaching the size of the Valdez spill but this one is in progress with no end in sight.  Nonetheless, I also made a play on BP as they got so beaten down in pre-market that they are finally looking attractive.  

We bought DIA $108 puts for 74 cents yesterday morning along with QID $16 calls at .95 but we mostly took our crazy profits off the table ahead of today’s data, hopefully for a nice bottom and another buying opportunity.  Retail sales were not all that bad and we’ll simply have to say what levels stick today and I think these charts are self-explanatory: 

Gold is going to be a tempting short off $1,250 but scary into the weekend - I feel better going long on oil as a speculative play (ERX is $37).  Still, it will take a lot to get our cash off the sidelines as we expected 10,700 to be tested again and a quick bounce off this level won’t satisfy us - we need some consolidation down here to get more comfortable with the upside.  That’s going to be a tough trick to pull off into option expirations next Friday!

So be careful out there and have an excellent weekend,

By Phil

www.philstockworld.com

Philip R. Davis is a founder of Phil's Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing -- which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil's Stock World (www.philstockworld.com)

© 2010 Copyright  PhilStockWorld - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in