The Fast Money Machine

2011 Fast Money Machine Swing Trade Newsletter Results!

2012-01-04T14:41:00.002-05:00

The Fast Money Machine Swing Trade Newsletter Results are in! ST Newsletter +12.6% versus the S&P -0.2% for a 12.8% Out-performance! Cumulative Out-performance of 75.4% since inception in 2007!

	FMM - ST		Annual Chg.	Cum. Chg.
Date:	Actual	S&P 500	To S&P	To S&P
2006	50,000	50,000	-	-
2007	53,000	51,750	1,250	1,250
2008	51,763	31,826	19,937	19,937
2009	61,236	39,687	1,612	21,549
2010	66,053	36,750	7,754	29,303
2011	74,398	36,677	8,418	37,721

Percentage
Since Inception	48.8%	-26.6%		75.4%

2011 Day Trade Newsletter Annual Results are in!

2012-01-04T13:04:00.003-05:00

The Fast Money Machine Day Trade Newsletter Results are in! DT Newsletter +10.0% versus the S&P -0.2% for a 10.2% Out-performance! Cumulative Out-performance of 87.5% since inception in 2008!

	FMM - DT		Annual Chg.	Cum. Chg.
Date:	Actual	S&P 500	To S&P	To S&P
2007	50,000	50,000	-	-
2008	55,950	30,750	25,200	25,200
2009	68,819	37,976	5,642	30,842
2010	78,660	42,837	4,980	35,822
2011	86,526	42,752	7,952	43,774

Percentage
Since Inception	73.1%	-14.5%		87.5%

FMM Newsletter SwingTrade

2011-11-29T17:25:00.002-05:00

Closed out our XLE short today at the open 11/29, see entry post on 11/17. This is what our newsletter is all about, finding swing trade setups based on candle stick setups. The Swing Trade Candle Portfolio is up 14.4% YTD!

FMM Newsletter Trade Setup

2011-11-16T17:26:00.001-05:00

Chart from today's newsletter.

Jobs, Jobs, Jobs

2011-09-13T09:13:00.001-04:00

Loving our XLF short!

2011-06-03T16:45:00.003-04:00

Classic setup that we caught. Shorted the XLF on a bearish engulfing pattern and subsequent lower day open after a nice uptrend. Have stayed short until we get a hammer pattern and a subsequent higher open. Find out more subscribe to the short term newsletter

Credit Card Code

2011-03-10T21:51:00.002-05:00

http://www.mint.com/blog/trends/credit-card-code-01202011/

Podcast #108 - Tool in the Crib - Morning Star

2011-03-10T21:49:00.001-05:00

This Is How a Dollar Bill Lives and Dies

2011-02-02T22:00:00.002-05:00

http://gizmodo.com/5685356/this-is-how-a-dollar-bill-lives-and-dies?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+gizmodo%2Ffull+%28Gizmodo%29

Budget Puzzle: You Fix the Budget

2011-02-02T21:58:00.000-05:00

Today, you’re in charge of the nation’s finances. Some of your options have more short-term savings and some have more long-term savings. When you have closed the budget gaps for both 2015 and 2030, you are done. Make your own plan, then share it online.

http://www.nytimes.com/interactive/2010/11/13/weekinreview/deficits-graphic.html

Podcast #108 - Tool in the Crib - Dark Cloud Cover

2011-02-02T21:56:00.001-05:00

Podcast #107 - Tool in the Crib - Bullish Engulfing Pattern

2010-11-23T21:18:00.004-05:00

Podcast #106 - Tool in the Crib - Bearish Engulfing Pattern

2010-10-26T21:53:00.002-04:00

Listen to podcast #106 as we discuss the bearish engulfing pattern.

Podcast #105 - Tool in the Crib - Doji Pattern

2010-10-06T17:05:00.002-04:00

4th Qtr FMM Newsletters 50% off!

2010-09-30T17:04:00.002-04:00

Get the FMM Day Trade Newsletter and the Swing Trade Newsletter at 50% off for the fourth quarter. Simply select the 4th Quarter Special in the drop down box on the right. Signup securely via Paypal.

Thank you for your continued support!

Podcast #104 - Tool in the Crib - Hammer Pattern

2010-09-18T15:06:00.001-04:00

Tool in the Crib #103 - Free TA Booklet

2010-09-02T17:20:00.002-04:00

Download your free copy of The Ultimate Technical Analysis Handbook

http://www.elliottwave.com/club/ultimate-technical-analysis-handbook/default.aspx?code=36029

In this 50-page eBook, you will discover some of the very best technical methods used by the top professional technicians in the world. You will learn which tools are best for analyzing chart patterns, which are best for anticipating future price action, even which are best for spotting high-probability turning points.

Better still, these handpicked lessons from Elliott Wave International's most popular ebook series, Trader's Classroom, will show you how to incorporate the most powerful technical tools into your own investment decisions. You'll get lessons on:

Elliott waves
MACD (Moving Average Convergence/Divergence)
Fibonacci
Trendlines
Time Divergence
Setting protective stops with technical analysis
And more!

Podcast #102 - Tool in the Crib

2010-08-26T17:51:00.002-04:00

Top Dog Trading Free Video Course

Find out how to trade using the "The Rubber Band Trade." setup.

The problem with entitlement programs

2010-08-20T15:35:00.001-04:00

This week, citizens in Poland were up in arms after it was reported the government would cut its allowance for funerals to $1,300 from $2,100. I was taken aback because I didn't realize the government in Poland paid for funerals. Then, there was the amount, a lot of money when you consider per capita purchasing power is around $17,000 a year. But, here's the rub, people were outraged with one woman who was quoted as saying "births and deaths should be celebrated."

In an article in the FT, a maker of inexpensive coffins celebrated the news because he currently sells most of his 11,000 in annual production to neighboring Germany, where funerals are less conspicuous. His plain, old coffins just weren't opulent enough for Poles. I guess if someone else is paying for it then go full bore. That comes with the territory of entitlements. The recipient doesn't think, or care, where the money comes from but makes sure the check is there on time. The more of this kind of stuff that's given away by the government the less people will strive to get it on their own.

source: wstreet.com

Podcast #101 Available in iTunes!

2010-08-19T21:33:00.002-04:00

Search for the Fast Money Machine in the Business / Investing Section. Here is the chart that I talked about in the podcast. It's a thing of beauty isn't it!

Podcast Episode #100 in iTunes!

2010-08-12T22:30:00.002-04:00

Here are the charts we covered in tonights podcast. Search for the fast money machine in itunes.

Tool in the Crib - #100 Taxes and A Blog Site

2010-08-12T22:24:00.004-04:00

For podcast #100 we have two tools in the crib for you this time:

Tracking taxes: A look back at tax rates and spending:

USA Today Tax Interactive Chart

Trading Blog site:

http://ronsen.blogspot.com/

This site provides an overview of stock market chart and market dynamics to encourage investors and traders to be all they can be. Designed to help teach financial literacy.

FMM Daily Newsletter - DT Trade

2010-08-01T22:52:00.001-04:00

I have included the chart of a trade we made back on 7/28. The day trade daily newsletter flashed a signal to go short the next day at the open and close the position at the end of the day. Below is our results.

Date

Share$

Amount

07/28/10

110.83

360

39,849

short

Date

Share$

Amount

G/(L)

07/28/10

111.25

360

40,000

151

0.4%

2010 First Half Performance

2010-06-30T22:23:00.002-04:00

2010 First half results are in and we are very pleased with our double digit out-performance!

FMM Daily Newsletter - ST Candle Trade

2010-06-14T16:52:00.002-04:00

Check out our recent trade in the IYT. Went long at the open on 6/10 (75.91) after a hammer confirmation pattern the previous two days. Sold when it hit our target of (80) as we anticipated the 50 day ma providing resistance. Nice 5.4% return in 3 trading days.

Tool in the Crib #99 - Upcoming IPOs

2010-03-24T17:33:00.001-04:00

For 20 years Renaissance Capital, as a major independent research provider, has been writing pre-IPO research reports on every U.S. initial public offering

http://www.renaissancecapital.com/IPOHome/Calendars/OnDeck.aspx

Barrons Article on Underfunded State Pensions

2010-03-19T13:06:00.000-04:00

http://online.barrons.com/article/SB126843815871861303.html?mod=BOL_hpp_mag#articleTabs_panel_article%3D1

AIG - Half Down, $51 Billion to go

2010-03-08T16:42:00.000-05:00

http://money.cnn.com/2010/03/08/news/companies/aig_payback/

Source: CNN

Scaling the Deficit

2010-03-06T10:43:00.000-05:00

Awesome article and charts on the deficit

http://www.briefing.com/GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?SiteName=InvestorPopUp&ArticleId=NS20100303100545AheadOfTheCurve

Oneoption Results

2010-03-06T10:16:00.002-05:00

Excerpt from Peter Stolcers weekly email..... "The Weekly Report has been knocking the cover of the ball. Here are all of the trades from the last six months"

Really? He's lost you money so far in 2010. (closed positions in 2010) I'd hardly call that knocking the cover off of the ball............... I would say "it had knocked the cover off the ball, when the market was going straight up as well in late 2009"

Tool in the Crib #98 - Wall Street Traffic Light

2010-03-04T17:14:00.002-05:00

http://www.wallstreettrafficlight.com/

The Wall Street Traffic Light, a new investment strategy explained in hisbook, provides specific answers to those questions. The strategy is best suited to 401(k) and IRA investors (because of their tax advantage), but other investors also may find it to be useful.

The Wall Street Traffic Light (WSTL) strategy is based on historical patterns of the S&P 500 Index—the broad-based, large-company index of U.S. stocks that serves as a widely-used barometer of the market. By looking closely at the annual returns and short-term movements of the S&P 500 over time, he found four recurring patterns that will help guide investors today. In his book you will discover this important, scientifically-tested history lesson: For every rolling decade during 1935-2009 (1935-1944, 1936-1945…2000-2009) the WSTL strategy has achieved higher returns and took lower risk compared to buying-and-holding the S&P 500. That is “sleep well” performance indeed.

15% Head Start with 529 Plans

2010-02-13T12:01:00.001-05:00

If someone gave you a 15% head start toward saving for college, would you take it? That's the basis for Matt Krantz's recent article in USA Today regarding 529 Plans. Check it out:

http://www.usatoday.com/money/perfi/columnist/krantz/2010-02-05-529-college-savings-plans_N.htm?csp=

Stock Market Holiday Schedule 2010

2010-02-12T15:09:00.001-05:00

Stock Market Holiday Schedule 2010

New Year's Day	January 1, 2010
Martin Luther King Jr. Day	January 18, 2010
President's Day	February 15, 2010
Good Friday	April 2, 2010
Memorial Day	May 31, 2010
Independence Day	July 5, 2010 (Observed)
Labor Day	September 6, 2010
Thanksgiving Day	November 25, 2010
Day after Thanksgiving	Early close 1:00 p.m.
Christmas	December 24, 2010 (Observed

Obama Proposes New Bank Rules

2010-01-22T11:12:00.000-05:00

Get ready for a bumpy ride...

http://www.cnbc.com/id/15840232?video=1392047299&play=1

AIG and our Fed committing fraud?

2010-01-08T09:33:00.000-05:00

During the height of the financial crisis, the Federal Reserve Bank of New York told AIG to withhold details from the public about the insurer's payments to banks. CNBC's Mary Thompson and Steve Liesman discuss.

http://www.cnbc.com/id/15840232?video=1379512572&play=1

FMM Daily Newsletter Cumulative Results Since Inception

2010-01-07T17:14:00.000-05:00

	2005	2006	2007	2008	2009	Cum.

ST - Indicator	21.0%	11.0%	6.0%	-11.5%	15.2%	41.7%
ST - Candles	n/a	n/a	n/a	21.8%	11.0%	32.8%
LT - Indicator	n/a	n/a	n/a	-17.3%	28.7%	11.4%
DT - Newsletter	na/	n/a	n/a	11.9%	23.0%	34.9%

FMM Newsletter Avg.	21.0%	11.0%	6.0%	1.2%	19.5%	30.2%

S&P 500	3.0%	14.0%	3.0%	-38.5%	23.5%	5.0%

2009 Daily Newsletter Results

2010-01-07T16:58:00.002-05:00

2009 Results:

Portfolio#1 - Day Trade Daily Newsletter
23.0%

Portfolio#2 - Long Term Swing Trade Daily Newsletter
28.7%

Portfolio#3 - Swing Trade Market Indicators Newsletter
15.2%

Portfolio#4 - Swing Trade Candle Charts Newsletter
11.0%

S&P 500
23.5%

Dow
20%

email me to request a detailed copy of trades

Tool in the Crib #97 - Trader Planet Webinars

2010-01-07T16:46:00.000-05:00

These on-demand presentations, given by independent technical instructors, give you an opportunity to learn more about trading in specific areas of interest

http://www.traderplanet.com/library/webinars

Technical Analysis Series
Fundamental Analysis Series
Intermarket Analysis Series
Industry Series

FMM ST Candle Newsletter Trade - XLE

2010-01-06T16:52:00.001-05:00

Bought:

Date	Share$	Shares	Amount
01/04/10	57.92	173	10,000

Sold:

Date	Share$	Shares	Amount	G/(L)
01/06/10	59.75	173	10,316	316	3.2%

Then versus Now

2010-01-06T10:20:00.002-05:00

Federal Government Growth

2009-12-16T14:25:00.001-05:00

Not a political comment just the facts....

- In the past ten years, when not including the post office, federal employment is up 15% versus just 1% in the private sector.
- Average annual salary of federal employee: $71,206 versus $40,331 in the private sector
- Average annual salary with benefits of federal worker: $119,982 vs. $59,909 private sector
- 19% of federal workers make $100,000 plus, up from 14% year over year
- There are more federal employees making $100,000 than $40,000 a year

Is it fair that I still have to pay my taxes if Citigroup doesn't?

2009-12-16T10:34:00.001-05:00

U.S. gave up billions in tax money in deal for Citigroup's bailout repayment

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/15/AR2009121504534_pf.html

The federal government quietly agreed to forgo billions of dollars in potential tax payments from Citigroup as part of the deal announced this week to wean the company from the massive taxpayer bailout that helped it survive the financial crisis.

The Internal Revenue Service on Friday issued an exception to long-standing tax rules for the benefit of Citigroup and a few other companies partially owned by the government. As a result, Citigroup will be allowed to retain billions of dollars worth of tax breaks that otherwise would decline in value when the government sells its stake to private investors.

While the Obama administration has said taxpayers are likely to profit from the sale of the Citigroup shares, accounting experts said the lost tax revenue could easily outstrip those profits.

Tool in The Crib #96 - 529 College Planning

2009-12-15T13:33:00.004-05:00

Use this section to research 529 plans from every state. We provide plan information and tools that help you choose which plan is right for you. We have even rated all of the nation's 529 plans so you can quickly compare overall effectiveness of each plan.

http://www.savingforcollege.com/college_savings_201/

Popular comparisons

529 plan history

A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996.

Types of 529 plans

529 plans are usually categorized as either prepaid or savings plans.

Savings Plans work much like a 401K or IRA by investing your contributions in mutual funds or similar investments. The plan will offer you several investment options from which to choose. Your account will go up or down in value based on the performance of the particular option you select.

Prepaid Plans let you pre-pay all or part of the costs of an in-state public college education. They may also be converted for use at private and out-of-state colleges. The Independent 529 Plan is a separate prepaid plan for private colleges.

The Real Cost of Higher Education

An excellent education for your child does not necessarily require that you spend $40,000 in today’s dollars for one year of tuition at an Ivy League school. There are many well-regarded, reasonably-priced private colleges. The average public college or university tuition is lower yet, especially for residents of the state where the school is located.

Type of Institution	Projected 4-Year Tuition and Fees
	Today (Enrolling 2009)	In 18 Years (Enrolling 2027)
Private College	$116,600	$332,800
Public/University (in-state resident)	$30,500	$87,200
2 Years Community College & 2 Years Private College	$66,900	$191,200

(Based on average tuition and fees for 2008-2009 as reported by The College Board® and assumed to increase 6% annually.)

Qualified Tuition Programs (529 plans)—Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs.

Coverdell Education Savings Accounts— Earnings grow tax-deferred and distributions are tax-free when used for qualified post-secondary education costs. ESAs may also be withdrawn tax-free for primary and secondary school expenses before 2011.

Peter Stolcers going bearish?

2009-12-03T13:27:00.003-05:00

Here is an excerpt from his email dated 12/3:

"It’s possible that prices will break out on a good number tomorrow and that reversal will happen in the next week or two. Regardless, I feel that this rally is in the ninth inning and the headwinds are blowing. I have started selling out of the money call credit spreads on weak stocks. I don’t want to get too aggressive shorting the market into year end.

Once the uptrend line from March fails (SPY 107) I can get more aggressive with my shorts. DON’T BUY INTO THE RALLY, LOOK FOR SHORTING OPPORTUNITIES ON THE BACKSIDE."

Tool in the Crib - Podcast #95 - Black Friday Ads

2009-11-23T15:35:00.001-05:00

Starting planning for your 4am shopping trip on Black Friday at: http://bfads.net/

Problem mortgages hit new high at 14 percent

2009-11-20T12:12:00.000-05:00

Problem mortgages hit new high at 14 percent
Data mean foreclosures may not peak until next year

By Renae Merle
Washington Post Staff Writer
Friday, November 20, 2009

More than 14 percent of borrowers were in trouble on their mortgage during the third quarter, a new record, according to an industry survey released Thursday, which also suggests that the foreclosure rate is likely not to peak until next year as unemployment rates continue to rise.

Unemployment remains a big driver of the problem, according to the Mortgage Bankers Association, which conducts the survey. Those with delinquent loans now include a growing portion of people traditionally considered creditworthy and people whose mortgages are insured by the Federal Housing Administration.

"The outlook is that delinquency rates and foreclosure rates will continue to worsen before they improve," said Jay Brinkmann, the group's chief economist.

About 9.6 percent of borrowers were delinquent on their mortgage during the third quarter, according to the survey, and another 4.5 percent more were somewhere in the foreclosure process. Overall, about 14 percent of mortgage loans or 7.4 million households were delinquent or in the foreclosure process during the quarter, according to the group.

That is the highest level recorded by the survey, which has been conducted since 1972, and is up from about 10 percent of borrowers who were in trouble during the same period last year.

If unemployment rates peak by the middle of next year, foreclosures could reach their highest levels by the end of the year, Brinkmann said. But even after peaking, foreclosure rates are likely to remain elevated as borrowers in regions that have had steep price declines and now owe more than their home is worth continue to struggle, he said.

The majority of the problem remains in the Sun Belt states, such as California and Florida, which accounted for about 43.4 percent of the foreclosures started during the third quarter. Delinquency rates also grew locally.

The number of borrowers delinquent or in foreclosure in the District, for example, rose to 10.3 percent during the third quarter, compared with 7.4 percent during the same period last year. In Virginia, 9.9 percent of borrowers were in trouble with their mortgage compared with 7 percent last year. Maryland has the highest proportion of borrowers in delinquency or foreclosure in the area, 13.9 percent during the third quarter. That is up from 9.2 percent last year.

The foreclosure problem is building despite a massive government program that pays lenders to lower borrowers' payments. The rising foreclosure rate is not surprising, said John Taylor, chief executive of the National Community Reinvestment Coalition, a nonprofit housing group. "It's still disappointing nonetheless. Everyone would like to see a slowdown in this," he said.

The report also weighed on Wall Street on Thursday, along with mixed economic data. The Dow Jones industrial average was down 0.9 percent, or 93.87 points, to close at 10,332.44, while the Standard & Poor's 500-stock index fell 1.3 percent, or 14.90 points, to 1094.90. The tech-heavy Nasdaq composite index had the heaviest losses after reports that Bank of America had downgraded the semiconductor sector. It fell 1.7 percent, or 36.32 points, to 2156.82.

The results overshadowed a Labor Department report showing that the number of workers filing for initial unemployment benefits stayed flat last week. Also, the Federal Reserve Bank of Philadelphia's general economic index, which measures manufacturing activity in the mid-Atlantic region, reached 16.7 in November, up from 11.5 in October.

"This is an easy opportunity for some of the weak hands to take some profits," said Phil Orlando, chief equity market strategist at Federated Investors in New York. "I am characterizing what is going on here as a speed bump. This turn in the economy is real. There is just a little bit of chop to the numbers."

Source: The Washington Post

http://www.washingtonpost.com/wp-dyn/content/article/2009/11/19/AR2009111903885_pf.html

Gorilla Trades Open House (again!)

2009-11-18T15:31:00.001-05:00

For the next week, simply log into the secure Subscribers area of www.gorillatrades.com with the username "openhouse" and the password "special" (all lower case letters and no spaces) as many times, and as often as you wish.

Detroit Silverdome

2009-11-18T15:28:00.002-05:00

Yesterday saw the exclamation point to the nosedive the town has endured when its beloved sports stadium was sold. The Detroit Silverdome fetched $583,000 thirty-five years after it was built for $55.7 million.

The end of my cable bill near?

2009-11-13T10:19:00.000-05:00

Clicker aims to be TV Guide for Internet shows

Vowing to be a TV Guide for all Internet television, Clicker launches publicly Thursday, following a 58-day invitation-only “beta” period.

Founder and CEO Jim Lanzone says Clicker has indexed over 40,000 full episodes from more than 1200 sources, including sites such as Hulu, in more than 1,200 categories. Its catalog also includes 30,000 movies from Netflix Instant Streaming and Amazon Video on Demand, as well as more than 50,000 music videos from over 20,000 artists. (You’ll be told if you have to pay to watch something.)

Clicker’s data includes programming that appears online from all the usual broadcast suspects (and many more), as well as broadcast-quality Web originals. Certain podcasts are also indexed -- lectures and academic panels at Stanford University, for instance -- but Clicker isn’t meant to find every last clip on YouTube. It also brings up only what it considers to be legal content.

You can browse content by category or media type or find programming alphabetically. Clicker also provides recommendations for shows, and related shows based on what you search for. Click on The Office, and you’ll find related shows such as 30 Rock, Scrubs and Seinfeld.

You can also search by general topic. So if you type in Ft. Hood, you’ll get listings from the likes of Countdown with Keith Olbermann, The O’Reilly Factor, and CBS Evening News among others that covered the recent shooting there.

As you find shows, Clicker indicates how many full-length episodes are available to watch online immediately (regardless of the source). If a show is available from more than one source -- NBC and Hulu for 30 Rock, for example -- you can determine from where to watch it.

You can save episodes to a playlist (provided they’re still available to watch from the original source) and receive new episode alerts on shows of interest, via TiVo-like season passes. You can also share comments and facts about shows you watch. And you can search from within a show, to find, say, the 60 Minutes interview with Andre Agassi or an older 2001 appearance by the tennis star on Charlie Rose.

Clicker will also display trends lists of the most popular online shows.

Founder and CEO Jim Lanzone (formerly CEO of Ask.com) claims other video search engines are too scattershot and boasts that Clicker even does an even better job of searching Hulu than Hulu.

He also says Clicker can be instructive when shows are not available online (at least legally). Type The Jeffersons or The Golden Girls, for example and you’ll get a description of the shows. But you’ll also see the following programming note: “The distributor has not made any episodes available online yet. When they become legally available, we will list them here.”

The venture backed company recently added Sling Media founder and ex-CEO Blake Krikorian to the Board of Directors. Sling is known for the Slingbox video streaming device.

Tool In The Crib - Podcast #94 - CNBC RT Iphone APP

2009-11-07T14:02:00.002-05:00

http://www.cnbc.com/id/33077961/

Live, Streaming Real-Time Quotes and Charts

The only free App that delivers Real-Time stock quotes before, during and after market hours (4am-8pm), direct from the NYSE and NASDAQ.

CNBC’s Exclusive Breaking News Alerts

Leveraging the power and resources of CNBC’s 24-Hour global coverage, allowing you to stay on top of the markets no matter where you are.

Video on Demand

Offering over 150 new video clips produced each day, featuring top business news videos, global market analysis, and CEO interviews.

Plus, Interactive charts, Pre-Markets, "My Stocks" Customizable Watchlist and more!

The Economy is so Bad that...

2009-11-02T15:21:00.000-05:00

The Economy is so Bad that . . .

The economy is so bad that I got a pre-declined credit card in the mail.

It's so bad, I ordered a burger at McDonalds and the kid behind the counter asked,

"Can you afford fries with that?"

The economy is so bad that CEO's are now playing miniature golf.

The economy is so bad if the bank returns your check marked "Insufficient Funds,"

you call them and ask if they meant you or them.

The economy is so bad Hot Wheels and Matchbox stocks are trading higher than GM.

The economy is so bad parents in Beverly Hills fired their nannies and learned their

children's names.

The economy is so bad a truckload of Americans was caught sneaking into Mexico.

The economy is so bad Dick Cheney took his stockbroker hunting.

The economy is so bad Motel Six won't leave the light on anymore.

And finally...

Congress looked into this Bernard Madoff scandal.

Oh Great! The guy who made $50 Billion disappear is being investigated

by the people who made $1.5 Trillion disappear!

Day Trade Newsletter - Trade

2009-10-28T16:23:00.003-04:00

It's been awhile since my last post, so I figured that I'd share with you the short we had today in the Fast Money Machine Day Trade Newsletter. 2 technical patterns flagged the night before to short the SPY today. 1.5% return on our day trade today, bringing the YTD portfolio total to 23.4% YTD versus the S&P 500 return of 15.7%

Date

Share$

Amount

Date

Share$

Amount

G/(L)

10/28/09

104.41

189

19,707

short

10/28/09

105.96

189

20,000

293

1.5%

Tool in the Crib - Podcast #93 - News Map

2009-10-12T16:36:00.001-04:00

http://www.newsmap.jp/

Newsmap is an application that visually reflects the constantly changing landscape of the Google News news aggregator.

A treemap visualization algorithm helps display the enormous amount of information gathered by the aggregator. Treemaps are traditionally space-constrained visualizations of information. Newsmap's objective takes that goal a step further and provides a tool to divide information into quickly recognizable bands which, when presented together, reveal underlying patterns in news reporting across cultures and within news segments in constant change around the globe.

Newsmap's objective is to simply demonstrate visually the relationships between data and the unseen patterns in news media.

Retirement Pains and Realities

2009-10-12T16:32:00.001-04:00

Retirement Pains and Realities - Excerpt from Charles Payne's Market Commentary

It was bound to happen in the post-crash (maybe that's too optimistic). There is a ton of bitterness and fear among those that were told to work hard, put their money away in the stock market, so their golden years would be golden. Instead, there are endless stories of folks having to work at golf courses rather than play away on them. It's a tragedy in many ways, but some of the solutions being tossed about could be even more tragic. Local municipalities are balking at making fresh contributions to pensions, while there is talk that it's inevitable the Pension Benefits Guarantee Corp. will have to step up to the plate. But, the thing is that people are panicking. An article in "Time" magazine suggests ditching 401Ks in favor of some kind of guaranteed system. An article in the "Washington Post" suggests that government pension funds are going broke so what good is a guarantee.

The market had been predictable and unstoppable for decades, so it was easy to assume history would be a reliable guide. As it turns out, the last ten years are the lost decade for the U.S. stock market. Sure, toss in dividends and spin-offs and you could argue that money has been made, but not the kind of money people are relying on for years of comfortable retirement. Of course, the stock market could be an effective wealth creation tool and it's a great place to make money, but the notion of just putting money into it without actively monitoring progress and making changes is part of the fallacy that has wrecked so many people. When I say monitor I'm not talking gains and losses but what their holdings are, what industries those holdings are in, and how well those holdings are performing on a fundamental basis (are they gaining market share, growing margins, etc.).

Government Pension Funds

Some of the sobering realizations made in the "Washington Post" article by David Cho:

* Within 15 years public systems on average will have less than enough money needed to pay pension benefits
* Government pension funds are $1.2 trillion short of funds expected at this time
* Warren Buffett calls these pensions "time bombs"
With respect to the current dilemma of state pension funds, there has to be a realization that people have to take the hit. Moreover, now isn't the time to lose faith in the system but to understand it's going to take more creative ways to play the stock market and invest for the long haul.
I would take these funds and put them into smaller, nimbler baskets, I would allow some baskets to even go short the market and write options against established positions. I think that government pension funds should also consider investing in local businesses to create a win-win situation. Let's bring more free markets to government rather than more government to free markets. In the meantime, payouts are going to have to take hits. There is no way around it as all Americans have taken hits, so too should government employees. There is a good argument that firefighters and policeman desire special recognition for the risks they took during their careers, but that should be handled with higher pay because once exemptions are made politics kick in and it would only be a matter of time before good arguments for dog catchers getting bailed out is floated.

I don't see how any investment can be guaranteed in the first place. States must find better ways to manage the retirement savings of its workers, but there is no guarantee.

So, pension funds are in trouble, and 401Ks are in trouble, too.

401K Funk

The fact is that 401Ks haven't lived up to their potential for a variety of reasons. They were sold and still continued to be hyped as cure-alls. Magic boxes where workers dump in money and it's nurtured and grows into a big retirement safety net. The big mistakes:
* Being told to always be long the stock market all the time even when it has had a terrific rally and may be due for a pullback has been a major disservice to investors.
* Ironically, people load up at the top and avoid putting money into their 401Ks at the bottom

I think that people should be allowed to go short the market and individual stocks. Other options include:
* I think people should do a thorough investigation of their holdings monthly, quarterly at the least. It's amazing to me how many people don't know what they're holding in their retirement funds.
* People need more choices right now as they are just offered a handful on mutual funds that aren't very different.
Facts:
* The average 401K balance is $45,519
* 46.0% of 401K plans have less than $10,000

Forbes 400 List, OUCH!!

2009-10-12T16:28:00.002-04:00

The Forbes 400 list of richest Americans is down $300.0 billion to a combined wealth of $1.27 trillion, for the most part, it's the same old names.

http://www.forbes.com/2009/09/29/forbes-400-buffett-gates-ellison-rich-list-09-intro.html

100 Best Global Brands

2009-09-22T15:38:00.002-04:00

Really Gillette? I couldn't tell you what disposable I shave with!

Coca-Cola ($68,734 million)
IBM ($60,211 million)
Microsoft ($56,647 million)
GE ($47,777 million)
Nokia ($34,864 million)
McDonald's ($32,275 million)
Google ($31,980 million)
Toyota ($31,330 million)
Intel ($30,636 million)
Disney ($28,447 million)
Hewlett-Packard ($24,096 million)
Mercedes-Benz ($23,867 million)
Gillette ($22,841 million)
Cisco ($22,030 million)
BMW ($21,671 million)
Louis Vuitton ($21,120 million)
Marlboro ($19,010 million)
Honda ($17,803 million)
Samsung ($17,518 million)
Apple ($15,443 million)

Check out the full article:
http://arstechnica.com/microsoft/news/2009/09/microsoft-takes-bronze-in-most-valuable-brand-report.ars?utm_source=microblogging&utm_medium=arstch&utm_term=Main%20Account&utm_campaign=microblogging

What Corporate America is Reading

2009-09-15T11:34:00.000-04:00

Top 10 list... Has anyone read any of these?

1. "Strategy for Sustainability: A Business Manifesto" by Adam Werbach; Harvard Business Press

The definitive work by an authoritative voice on the topic.

2. "Rich Dad's Prophecy" by Robert T. Kiyosaki, Sharon L. Lechter; Business Plus

Answers the question on working person's minds: "Will I ever be able to retire?"

3. "Rich Dad's Guide to Investing" by Robert T. Kiyosaki, Sharon L. Lecher; Business Plus

A guide to understanding the real earning power of money by learning investing secrets of the wealthy.

4. "Rich Dad's Increase Your Financial IQ" by Robert T. Kiyosaki, Jake Johnson; Business Plus

The latest book in the "Rich Dad" series lays out five key principles of financial intelligence.

5. "Be the Hero: Three Powerful Ways to Overcome Challenges in Work and Life" by Noah Blumenthal; Berrett-Koehler

Executive coach and corporate trainer shows workers and managers how abandoning our victim stories and embracing our heroic potential can increase employee engagement and productivity.

6. " How: Why How We Do Anything Means Everything ... in Business (and in Life)" by Dov Seidman; John Wiley & Sons

An insightful manifesto that guides companies and their leaders to achieve sustainable profit without compromising core values.

7. "Sense of Urgency" by John Kotter; Harvard Business Press

In "Leading Change," Kotter provided an action plan for successful transformations. Now, he shines the spotlight on the first step: creating a sense of urgency by getting people to see and feel the need for change.

8. "Love Leadership: The New Way to Lead in a Fear-Based World" by John Hope Bryant; Jossey-Bass Inc.

This book makes the case that the best way to get ahead is to figure out what each individual can give to a world seemingly obsessed with the question: What's in it for me?

9. "Rich Dad's Cashflow Quadrant" by Robert T. Kiyosaki, Sharon L. Lechter; Warner Books

Revelations about why some people work less, earn more, pay less in taxes, and feel more financially secure than others.

10. "Trust Agents: Using the Web to Build Influence, Improve Reputation, and Earn Trust" by Chris Brogan, Julien Smith; John Wiley & Sons

How people use online social tools to build networks of influence and how you can use those networks to positively impact your business.

Gorilla Trades Open House

2009-09-04T16:52:00.003-04:00

For the next week, simply log into the secure Subscribers area of www.gorillatrades.com for FREE!!

Use the username "openhouse" and the password "special" (all lower case letters and no spaces) as many times, and as often as you wish.

Debit or Credit?

2009-08-28T09:24:00.003-04:00

Personally, I have no earthly idea why anyone would use a debit card over a credit card (as long as you pay off the balance every month). Here are some pros and cons:

Source: USA Today
http://www.usatoday.com/money/perfi/credit/2009-08-27-mym-debit-credit-card_N.htm?csp=DailyBriefing

Debit card pros and cons

Some considerations when using a debit card:

•Make sure the funds are there. A $6 sandwich can wind up costing $46 if you don't realize your checking account is flat-lining. Most merchants no longer reject a card if you have an inadequate balance; instead, you incur a hefty overdraft fee.

For example, Bank of America charges $35 for each overdraft above $5. Spokeswoman Anne Pace says fees will be capped after a consumer makes 10 overdrafts in a single day; overdrafts totaling less than $5 carry a smaller fee of $10. Wachovia charges $22 for the first overdraft in a 12-month period, then $35 for each subsequent one, says spokeswoman Richele Messick.

Messick suggests debit customers can avoid fees if they keep track of expenditures and link checking accounts to savings accounts, credit cards or lines of credit.

•A security breach could mean trouble. "I do think there are a lot of advantages to using debit cards as far as restraining spending, but there are a lot of risks of having debit card information stolen," says Ronald Mann, a Columbia University law professor who wrote Charging Ahead: The Growth and Regulation of Payment Card Markets.

"If there's a problem with a credit card, I simply put that card aside and use a different card until things get worked out. With debit, it's a much more serious event," Mann says.

Federal regulations limit liability for most consumers who are defrauded, but your debit account could be inaccessible for up to 10 business days after you report the fraud, says Gail Hillebrand, senior attorney for the non-profit Consumers Union's West Coast office.

If your credit card is lost or stolen, you typically won't be on the hook for more than $50. If an unauthorized user gets your card number but not your card, your liability in most cases is zilch. Both Visa and MasterCard promise "zero liability" and quick resolution for any fraud committed over their transaction networks, including debit transactions. Some merchants use other networks.

•Usage fees. Some banks and merchants charge fees of 50 cents or a $1 for debit card use at certain stores.

•Account blocks. Some merchants place blocks on debit accounts for purchases that aren't completed immediately: hotels, vehicle rentals and gasoline purchases, for example. That could keep you from using the debit card for other purchases.

•Prepaid debit and gift cards. Look out for fees — activation fees, non-use fees, ATM withdrawal fees, retail fees and reload fees. Also, many of these cards aren't covered by federal regulations.

What about credit cards?

The major difference between credit and debit cards — when the money actually leaves your bank — accounts for the positives and negatives. Some considerations:

•They offer free short-term borrowing. If you pay the balance in full on time, you get an interest-free loan.

•Delayed payment raises the price paid. The $6 burger that ballooned to $46 with the debit card overdraft? It could do the same — or worse — over time on a credit card if you don't pay the balance at month's end. High interest rates and late-payment penalties can add up.

•Charges can be denied. If you use your card to purchase something that didn't turn out the way you had hoped, you can dispute the charge. Some credit cards even carry insurance on purchased items.

"It's the best method for ordering online or ordering something that you can't evaluate until you bring it home and plug it in," says Consumers Union's Hillebrand.

•They tempt you to buy more than you can afford. "You have the best consumer protections on the payment method that creates the most risk to your household budget," Hillebrand says. "The biggest danger with credit is going into debt — and that's a danger that's highly overlooked."

•Be careful with rewards. Some credit card companies offer rewards programs to keep customers charging — although some issuers recently instituted fees for delinquent card holders who wish to remain eligible for rewards. Hillebrand advises consumers to rethink rewards.

"The basic problem with rewards programs is that they are designed to get us to use our credit cards more than we really should," she says. "If you're at any risk of not being able to pay it off at the end of the month, the rewards are not worth it. And, in this economy, we're all at risk."

FMM - Swing Trade Daily Newsletter Trade - XLE Indicator

2009-08-26T18:35:00.002-04:00

Overbought / Oversold Indicator Portfolio Trade: XLE

Bought at the next days open (8/12/09) when the indicator flashed an oversold status of -6.00 (blue line) and sold at the next days open (8/22/09) when the indicator flashed an overbought status of +6.40. (blue line)

Date

Share$

Amount

08/12/09

50.20

199

10,000

Date

Share$

Amount

G/(L)

08/24/09

52.84

199

10,526

526

5.3%

Tool in the Crib - Podcast #91 - Stock Risk Score Sheet

2009-08-26T16:19:00.002-04:00

This weeks tool in the crib is the Stock Risk Score Sheet for investing, which can be found here, courtesy of winninginvesting.com.
http://www.winninginvesting.com/risk_score_sheet.htm

It consists of 7 criteria to consider for a particular stock. Add one point for each of the following conditions.

1) Debt level of a company (D/E >0.5)
2) Market Capitalization (< $2b) 3) Profitability (ROE <>10%)
6) Operating Cash Flow (negative)
7) P/E Ratio (>40)

The higher the number the greater the risk in investing in this company. Perfect score is zero, the lower results the better.

How Does Your Broadband Rate

2009-08-26T08:57:00.003-04:00

U.S. states with the fastest broadband Internet. My state (N.C.) falls somewhere in the middle. Road Runner in my area is plenty fast, I just wish the upload speeds were greater. Where does your state rank and do you agree with it?

Check it out at: http://latimesblogs.latimes.com/technology/2009/08/15-us-states-with-the-fastest-broadband-internet-speeds.html

source: La Times

Upromise eCoupons

2009-08-11T09:56:00.003-04:00

Have you joined UPromise yet? If not, now's the time to do so. Why? Because you can earn money for college or future education just by registering your grocery cards and buying the things you would normally buy.

There are ways which you can earn money through it, without spending any extra money to do so.

First off, you just need to sign up here and then register your shopper's cards and debit cards. When you shop and use these cards, you can earn a small percentage back on many items you would already be purchasing.

But that's not all! They've also rolled out an ecoupons program. These are unlike the ecoupons offered through Cellfire or Shortcuts which automatically come off of your grocery total. Instead, when you redeem these ecoupons (by buying one of the items these coupons are for), you'll get the cashback credited to your UPromise account.

I'd recommend loading on all of the ecoupons available every month. You probably won't buy a number of the items, but you never know when there's going to be a great bargain.

Yes, it's only $0.75 here and $1 there, but over time, it can really add up. Plus, if you have friends or relatives who are not interested in earning their own UPromise money, you can ask them if they'd be willing to add their cards to your account and then you can also earn a little bit for their purchases, too!

Cramer's Manifesto

2009-07-28T09:25:00.002-04:00

What's the formula for bringing jobs back to America? Cramer outlined his "Capitalist Manifesto," an eight-point plan that he said you won't hear anywhere else.

1. Embrace natural gas: Create a network of natural gas pipelines and subsidize natural gas vehicles.

2. Build infrastructure: Rebuild everything, from roads and bridges to waterways and runways. Put some serious money back into our country.

3. Fix healthcare: The government needs to create three nationally competing healthcare providers and subsidize all of them to increase competition and bring down prices.

4. Bring home the troops: Reduce the number of troops in countries like Germany, Japan and South Korea and put the Corp of Engineers to work at home.

5. Pay a bounty: Pay companies a bounty for every American they hire.

6. Serious solar: Get serious about solar energy and subsidize a solar panel for every home.

7. Build high-speed trains: Just about every other country has one, and they create jobs. Build a high-speed line from Maine to Florida and another across the country.

8. Stop pushing card-check unions: No company want to hire with the threat of unions looming. The economy just can't take the hit right now.

Source: http://www.thestreet.com/story/10554431/1/cramers-mad-money-recap-market-takes-a-breather-final.html

Tool #61 - Podcast #89 - SMB Capital Blog & Twitter

2009-07-21T13:39:00.002-04:00

http://www.smbtraining.com/blog/

SMB Blog shares market stories and trading lessons from experienced, professional proprietary traders. Here, we discuss trading setups, the psychology of trading, and trading fundamentals. SMB Blog also offers coaching, market commentary, and interesting stories from successful active proprietary traders at SMB Capital.

FMM - Swing Trade Daily Newsletter Trade - XLF Indicator

2009-07-17T11:29:00.003-04:00

Overbought / Oversold Indicator Portfolio Trade:

Bought at the next days open (7/9/09) when the indicator flashed an oversold status of -8.60 (blue line) and sold at the next days open (7/16/09) when the indicator flashed an overbought status of +6.60. (blue line)

Date

Share$

Amount

07/09/09

11.27

887

10,000

Date

Share$

Amount

G/(L)

07/16/09

12.15

887

10,781

781

7.8%

Newsletter Performance Update as of 7/15

2009-07-15T16:49:00.002-04:00

Don't you just love diversification. All 3 Newsletters approaching 10% YTD returns!!

Portfolio Performance:
The Fast Money Machine Charts Portfolio	9.5%	YTD	3.3%	SPY YTD	6.2%	0,"Outperformance","Underperformance")">Outperformance
The Fast Money Machine ST Model Portfolio	9.3%	YTD	3.3%	SPY YTD	6.0%	0,"Outperformance","Underperformance")">Outperformance
The Fast Money Machine LT Model Portfolio	9.3%	YTD	3.3%	SPY YTD	6.1%	0,"Outperformance","Underperformance")">Outperformance

And lets not forget about the Day Trade Newsletter now up 19.2% YTD!!

FMM - Swing Trade Daily Newsletter Trade - SPY Candle

2009-07-15T16:46:00.003-04:00

7/10 - shorted at 87.70 as the stock gapped lower but traded in a narrow range along support. still waiting for the breakout move as this wasnt it. stop 92

7/13 - the breakdown was false as it launched higher today. keep stop at 92.25 as we will see if 50 day provides resistance.

7/14 - false breakdown is killing me. looking for 50 day to provide resistance and a turning point back down. keeping stop at 92.

7/15 - stopped out at 92 as stock gapped up above 50 day, next possible trade point is recent highs at 96.

Date

Share$

Amount

07/15/09

92.00

114

10,490

Date

Share$

Amount

G/(L)

short

07/10/09

87.70

114

10,000

(490)

-4.7%

Tool #60 - Podcast #88 - US Debt Clock

2009-07-01T16:32:00.001-04:00

Real Time running US Debt Clock broken out into many categories.

http://www.usdebtclock.org/

FMM - Swing Trade Daily Newsletter Trade - XLE Candle

2009-06-23T17:26:00.002-04:00

6/19 - Here we are at the 50+200 day. go in the direction of a meaningful gap move.

6/22 - shorted the open (48.45) as stock breached the 50/200 day. stock resting on previous resist. which is now support. stop at 50. cover on a up open tom.

6/23 - stock opened up and covered (at 46.90) as stock is resting on support. will short again on a gap below 46.

Date

Share$

Amount

G/(L)

short

06/22/09

48.45

206

10,000

320

3.3%

06/23/09

46.90

206

9,680

Raleigh's Barrel Monster

2009-06-22T10:59:00.002-04:00

Prosecute or innocent prank?

The Barrel Monster appeared on Hillsborough Street in late May and was later dismantled. Last week police charged its creator with misdemeanors.

RALEIGH - The Barrel Monster, a playful statue made of orange and white construction barrels, only had a few hours of life on Hillsborough Street but is basking in popularity as news spreads of its suspected creator's arrest by Raleigh police.
In the week since Joseph Carnevale, a student at N.C. State University, was arrested June 10, both he and the Barrel Monster have attracted attention from around the country, and even the world.

FMM - Swing Trade Daily Newsletter Trade - SPY Candle

2009-06-16T17:02:00.004-04:00

Candle Portfolio Portion of the Swing Trade Newsletter

(chart annotations excerpt:)

6/11 - Go short on a lower open as resistance level was rejected again.
6/12 - Went short at the lower open (94.40) target 92, stop 96.
6/15 - Nice move to the downside closing near the lows of the day, but volume was on the light side.
6/16 - target of 92 achieved and covered short. Stock closed at the lows of the day as 200day comes into play.

Date

Share$

Amount

06/16/09

92.00

106

9,746

Date

Share$

Amount

G/(L)

short

06/12/09

94.40

106

10,000

254

2.6%

Tool #59 - Podcast #87 Net News Wire

2009-06-16T16:41:00.002-04:00

NetNewsWire for iPhone - Free Mobile RSS Reader for Easy, On-the-Go Access to News & Information

NetNewsWire for iPhone is a free native application based on the award winning RSS feed reader for Mac. NetNewsWire for iPhone provides you with a lightweight, easy application for keeping up with feeds on the go and it syncs with NewsGator’s suite of RSS readers, including NewsGator Online.

RSS is the fastest and most efficient way to read your favorite news and with NetNewsWire for iPhone you can access feeds wherever you are.

http://www.newsgator.com/individuals/netnewswireiphone/default.aspx

Day Trade Newsletter Question - Capturing the Gaps

2009-06-16T16:34:00.002-04:00

Question:

David-

Why not determine the setups prior to the close and take the trade at the close

instead of at the open the following day. You would capture all of those big gap moves,

often times the majority of the move.

Answer:

Great question. I do it as a form of risk management. I'm not looking to hit home runs and thus strike out to. I'm just trying to consistently hit singles and garner large returns over cumulative trades.

I have found that without the trend confirmation, I get large swings in my results which usually cancel each other out. Remember the trend is your friend.

But I see your point and it sure is tempting especially with the money left on the table yesterday.

Quote

2009-06-10T11:57:00.000-04:00

I love this quote in relation to the banks and auto industry

"In business, the golden rule is all about the survival of the fittest not propping up the weakest."

thoughts...

Global Economic Trends

2009-06-09T09:32:00.002-04:00

Some of the numbers are scary. Below are the annualized changes in real GDP recently announced for some of the largest trading partners for the U.S.

Japan -15.2%

Germany -14.4%

Mexico -21.5%

These declines were not an aberration. German real GDP was down for the fourth straight quarter and the first quarter plunge followed a drop at an 8% annual rate in the fourth quarter of 2008. Mexico had posted a near 10% drop in the fourth quarter.

Other economies are not faltering as badly as the three noted above. The Eurozone overall dropped at "only" a 9.7% annual rate.

China posted growth at an annual rate of 6.1%. That was down from 6.8% in the fourth quarter of last year and 13% in 2007.

Tool #58 - Podcast #86 Twitter Followers

2009-06-04T12:33:00.002-04:00

This weeks tool in the crib is a list of stock market related people that I follow on Twitter. If you have someone that you would like to add, please email me or leave a comment on the blog post.

TraderInterview / Tim Bourquin
thestreet_tv / thestreettv
hedge_funds / Aaron @ HedgeCo
JimJCramer
planetmoney / NPR's Planet Money
freakonomics
madmoneycramer / Jim Cramer
cramertv / Jim Cramer
MadMoneyMachine / Paul Douglas Boyer
cnbctv / CNBC

Whats the best way to follow these people, is through a program called Tweet Deck. http://tweetdeck.com/beta/

FMM - Swing Trade Daily Newsletter Trade - IYT

2009-06-03T14:04:00.002-04:00

Overbought / Oversold Indicator Portfolio Trade:

IYT (Transports)

Date

Share$

Amount

05/13/09

55.46

180

10,000

Date

Share$

Amount

G/(L)

06/02/09

60.17

180

10,849

849

8.5%

Bought at the next days open (5/13/09) when the indicator flashed an oversold status (blue line) and sold at the next days open (6/2/09) when the indicator flashed an overbought status.

FMM - Swing Trade Daily Newsletter Trade

2009-06-01T16:53:00.003-04:00

Overbought / Oversold Indicator Portfolio Trade:

SMH (Semi Sector)

Date

Share$

Amount

05/12/09

19.98

501

10,000

Date

Share$

Amount

G/(L)

06/01/09

21.42

501

10,721

721

7.2%

Bought at the next days open when the indicator flashed an oversold status (blue line) and sold at the next days open when the indicator flashed an overbought status.

Leap in U.S. debt hits taxpayers with 12% more red ink

2009-06-01T16:07:00.001-04:00

Check out this article on USA Today regarding our portion of the nations debt.

http://www.usatoday.com/news/washington/2009-05-28-debt_N.htm?csp=usat.me

FMM - Swing Trade Daily Newsletter Trade - XLE Candle

2009-05-29T09:18:00.007-04:00

Candle Portfolio Portion of the Swing Trade Newsletter

(chart annotations excerpt:)

5/26 - bullish engulfing pattern today on decent volume. go long on a gap up open and trailing stop exit at the 200 day.
5/27 - went long on the gap up open (49.97) stock reversed just before the 200 day and reversed to the mid point of the prior days move., stop set at 46.
5/28 - exited long at (50.89) on a .30c trailing stop after crossing the 200 day as the 200 day has failed to hold for a 3rd time.

Date

Share$

Amount

05/27/09

49.97

200

10,000

Date

Share$

Amount

G/(L)

05/28/09

50.89

200

10,184

184

1.8%

Kiplinger's 2009 Best Cities

2009-05-26T11:55:00.003-04:00

http://www.kiplinger.com/magazine/archives/2009/07/best-cities-2009-where-the-jobs-are.html

Best Cities: It's All About Jobs
Stable employment and new career opportunities give these cities an edge.

From Kiplinger's Personal Finance magazine, July 2009

What a difference a year makes. Last summer, the energy and finance sectors of the economy seemed to be thriving, and manufacturing was going strong.

No. 1: Huntsville, Alabama

No. 2: Albuquerque, New Mexico

No. 3: Washington D.C.

No. 4: Charlottesville, Virginia

No. 5: Athens, Georgia

No. 6: Olympia, Washington

No. 7: Madison, Wisconsin

No. 8: Austin, Texas

No. 9: Flagstaff, Arizona

No. 10: Raleigh, North Carolina
Raleigh still has an enviable economic base, built on three universities and Research Triangle Park, where employers in everything from biotech to computers still thrive.

The Fast Money Machine Swing Trade Daily Newsletter

2009-05-25T15:59:00.001-04:00

The Fast Money Machine Swing Trade Daily Newsletter

The Fast Money Machine Swing Trade Daily Newsletter consists of three (3) separate portfolios: a Short Term Swing Trade Portfolio based on market indicators, a Short Term Swing Trade Portfolio based on technical analysis and candle charts, and a Long Term Swing Trade Portfolio based on the ARMS index moving averages.

Mission: The Fast Money Machine Swing Trade Daily Newsletter is designed to help all level of experience traders and investors from beginners to seasoned veterans diversify their portfolios through utilization of different investment strategies and not just obtaining diversification through different holdings.

It is my belief that ALL investment strategies will work from time to time and will fail from time to time. It is important to protect yourself and diversify your portfolio by having multiple strategies to minimize the risk of when a particular strategy is not performing in the market.

The Short Term Swing Trade Daily Newsletter is based on two key philosophies.

1) The market moves in waves. These waves take the market from periods of being overbought and to periods of being oversold. This can occur regardless of if the market is in a clear bullish uptrend, a bearish downtrend, or in a period of sideways consolidation. To properly capture these moves, we use several market indicators that are not influenced by human intervention, indicators such as my own S&P Oscillator, ARMs index, VIX volatility index, and my Sector Oscillators (Transports, Semis, S&P500, Energy and Financials). Long entry positions are given when the market becomes oversold and Long exit positions are given when the market becomes overbought and uses a 10% stop loss.

2) The market moves from levels of support to levels of resistance. These levels in the market provide good low risk entry points for going long the market as well as being able to short the market. Using candle chart patterns developed by Steve Nison, they can help us identify these trading opportunities.

The Fast Money Machine Swing Trade Daily Newsletter is delivered to the subscriber’s inbox each and every trading evening around 5pm (est.) with these market indicators and candle charts with my annotations. Positions can typically be entered the night before for action at the open the next morning and are typically exited a few days later again at the open. This allows for individuals to be able to trade without having to sit in front of a computer all day.

At just $19.99 a quarter or just $74.99 a year, the daily newsletter is priced so that even the beginner investor can take advantage of this service and learn how to invest and properly diversify their portfolios by implementing different investment strategies.

To start receiving the daily newsletter simply signup on the website, or email me noting which newsletter you wish to subscribe to. You will then receive a paypal invoice for the subscription costs. Simply pay via a credit card through paypals secure website.

Below is an excerpt of the daily newsletter .pdf file.

The Fast Money Machine Day Trade Daily Newsletter

2009-05-25T14:39:00.002-04:00

The Fast Money Machine Day Trade Daily Newsletter

The Fast Money Machine Day Trade Daily Newsletter is based on Toby Crabel’s 1990 technical work summarized in his book, Day Trading With Short Term Price Patterns.

Mission: The Fast Money Machine Day Trade Daily Newsletter is designed to help all level of experience traders from beginners to seasoned veterans participate in the low risk, high reward day trade setups and further diversify their portfolios by adding a day trading strategy.

It is my belief that ALL trading strategies will work from time to time and will fail from time to time. It is important to protect yourself and diversify your portfolio by having multiple strategies to minimize the risk of when a particular strategy is not performing in the market.

The Day Trade Daily Newsletter is based on some of Toby Crabel’s philosophy:

• The market moves from a period of rest (contraction) to a period of movement (expansion).

The Fast Money Machine Day Trade Daily Newsletter summarizes eight technical patterns that Toby Crabel’s work has identified for trading the contraction to expansion market movement.

The Fast Money Machine Day Trade Daily Newsletter is delivered to the subscriber’s inbox each and every trading evening around 5pm (est.) with these eight technical setups. Orders can typically be entered the night before for action at the open the next morning and are exited at the next days close. This allows for individuals to be able to trade without having to sit in front of a computer all day.

At just $39.99 a quarter or just $149.99 a year, the daily newsletter is priced so that even the beginner investor can take advantage of this service and learn how to trade and properly diversify their portfolios by implementing different investment strategies.

To start receiving the daily newsletter simply signup on the website or email me noting that you wish to subscribe to the day trade daily newsletter. You will then receive a paypal invoice for the subscription costs. Simply pay via a credit card through paypals secure website.

Crisis Of Credit Presentation

2009-05-24T15:16:00.000-04:00

http://www.crisisofcredit.com

2009-05-23T23:54:00.000-04:00

2008 Results:

Portfolio#1 - Swing Trade Market Indicators
-11.5%

Portfolio#2 - Swing Trade Candle Charts
21.8%

Portfolio#3 - Day Trade
11.9%

S&P 500
-38.5%

Dow
-33.8%

email me to request a detailed copy of trades

Using a Money Manager?

2009-05-23T23:53:00.001-04:00

Are you using a professional to manage your money??

- You work hard for the money you earn and save. It is imperative that your money works hard for you!! Saving is only step one. Managing your investments is even more important! State goals for your portfolio and measure them at least annually by measuring their performance to the S&P500 or some other market benchmark. If you hire someone to manage your investments, ensure that you measure there performance and keep track of there fees!! Your performance at your job gets measured, so should you're money managers!!

Market Timing Indicators

2009-05-23T23:51:00.000-04:00

Market Timing Indicators:

1.

Arms Index - It is assumed that price tells what is happening, while volume tells how it is happening. To look at either factor alone, not taking the other into consideration, gives an incomplete, and often erroneous picture of the market. By comparing advancing stocks and declining stocks to the volume of trading occurring on those advances and declines it recognizes underlying pressures which are not apparent in just a price study. The basic formula for the calculation of the ARMS index is: (A / D) / (AV / DV).
Results that are under 1 are bullish, as the advancing stocks are receiving more than their share of the volume. Our signals to buy are produced not by other people buying but by other people selling. We are looking for situations where an emotion be it fear or greed has run for too long. This puts us into the contrarian camp. We want to trade against the crowd, recognizing those times when the public has let fear prevail over reason and has sold stocks indiscriminately. The buy signal on a 3 day moving average is 1.4 and sell at 0.6. The 4 day average gives better signals at 1.3 and 0.7. The 21 day average signals are at 1.2 and 0.75. Combining indexes, 21 day and the 55 day we would want to be in the market when the faster line is below the slower. We would want to be out of the market when the 21 day is above the 55 day. When the faster index is high it is bearish, when it is above the 55 index, it is more bearish than the norm for the market. The 4 day index and the 13 day index works as a short term indicator. Even longer values which seem effective are the 55 and the 89 day average. Newton Zinder was one of the people to recognized that a reading over 2 for two days in a row as a buy signal. Argus investments chose 2.65 as there buy signal for any one day and would sell 8 months later. There study covered 20 years of market history and resulted in 11 buys. Only 1 produced a loss. During this period the market was up 192 percent while the trades produced 441 percent and they would have been out of the market 1/2 of the time. Find what time frame works best for you!!

2.

Oscillator - the oscillator is a 10 day simple moving average based upon the net differential of the number of advancing stocks and declining stocks on the NYSE. Typically speaking, the oscillator is over 350 this is a sign that the market is overbought on a short term basis and when the indicator is below -275, the market is oversold on a short term basis.

Overbought and oversold have to do with momentum and not necessarily price. Just because a market has slid in a big way does not necessarily mean it is oversold -- and vice versa. Since this is a momentum-related measure, one should be more concerned with the magnitude rather than the actual level of the move. For example, a truly weak market can get oversold and stay oversold by simply gaining downside momentum. Because we are concerned with the magnitude of the oscillator, we use it to judge the strength of the move. A reading of less overbought (i.e., a lower peak) accompanied by a higher high in the Dow Jones Industrial Average would be considered a negative divergence, as the momentum on this move was less than the previous move.

Therefore, when we get a peak reading in the oscillator in conjunction with a high in the Dow or the S&P 500, we conclude the market is overbought. After the market backs off some and begins to rally again, we will measure the magnitude of that rally by watching to see if the oscillator can better its previous reading. If it betters its previous overbought reading, the momentum is intact. If it turns down shy of the previous peak, we conclude momentum is waning and label that a negative divergence. It says to be cautious in here. The same holds true for declining markets, where the tendency is for a market to become oversold.

3.

Volatility Index (VIX) - The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Since its introduction in 1993, VIX has been considered by many to be the world's premier barometer of investor sentiment and market volatility. The formula uses a kernel-smoothed estimator that takes as inputs the current market prices for all out-of-the-money calls and puts for the front month and second month expirations. The goal is to estimate the implied volatility of a synthetic, at-the-money option on the S&P 500 index, with 30 days to expiration.

Generally when the VIX is less than 11, the market is overbought. When the VIX is greater than 18 the market is oversold. This indicator is generally useful for more longer term investment entry points. http://finance.yahoo.com/q?s=%5EVIX

4.

Bull / Bear Ratio - The bull / bear ratio is a contrarian indicator, like most indicators and measures when people are becoming too bullish and / or too bearish. When the Bulls are greater than 60%, this indicates an overbought market. When the Bulls are less than 40%, this indicates an oversold market.

5.

Put / Call Ratio - The put / call ratio is also a contrarian indicator, like most indicators and measures when people are becoming too bullish and / or too bearish. When the p/c ratio is greater than 0.70, the market is oversold and provides a good indicator to buy. When the p/c ratio is less than 0.60, the market is generally overbought and provides a good indicator to sell.

Tips for Buying & Selling Individual Stocks

2009-05-23T23:50:00.000-04:00

Tips for Buying & Selling Individual Stocks

Buying stocks? Use the below tips to maximize your profits and limit the downside!

* Buy in small lots and "leg" into a stock slowly building your position.
Example... Buying 100 shares? Buy 25 shares each week for a month.

Buy a cheap out of the money put as a strategy to protect your long term investments. If your investment goes down beyond the strike price, you will make money on the put, which will offset your stock loss. This will set in a floor and you can not lose any more money than your floor. (A put is a option contract, in which you are betting on the stock price to decline over a certain period of time)

Use a Stop Loss strategy for your short term investments - Setting a stop Loss Article - Removing emotion from your stocks is the best way to protect yourself from a loss. Set a stop limit for every short term investment. (8% - 10%) If the stock declines to your acceptable loss level, your stock will be automatically sold. Prevents you from hanging onto a stock that continues to slowly decline as your losses grow larger and larger.

Use Technical Analysis to help determine your entry and exit points.

Do your homework!! Never buying a stock without researching it first! Either use Fundamental Analysis or Technical Analysis before placing an order.

Options Simple Strategies

2009-05-23T23:49:00.001-04:00

Options

Options allow you to leverage your investments to control more stock with less capital. However, an option is for a specific time period. (Expires 3rd week of each month)

*

Buy deep in the money options to avoid high intrinsic value costs which will evaporate with the expiration of time. - Buy options with enough of a time horizon.

Covered call writing:
Objective: You want to buy a stock low and sell an option against it when the stock is high. (when expectations are for a stagnate period in the stock or a slight decline, but you do not want to sell your stock.

Risk: Stock rises and you miss some of the gains.

Example: Buy 100 shares of xyz stock at $90/share. Stock moves to $110. Now sell a $120 option for $5.50. You will receive $550 immediately into your account from the sale of the option (100 x 5.50). If the stock goes above $120 you will be called out and will forfeit your stock and miss out on any of the upside above 120. Your stock profit will be $3,000 (120-90) Your option profit will be $550, thus your total profit would be$3,550. If the stock goes below $120, will not be exercised and you keep the stock and the $550 option profit.

Personal Budgeting Tips

2009-05-23T23:38:00.001-04:00

Budgeting your finances is a very important and often overlooked function that everyone should perform. Do you have enough money in your checking account? Can you afford to save more for retirement? Should you set aside more money for investments or savings? Click on the links below to download the Excel Spreadsheets and start to better manage your personal finances.

Step #1 - Calculate your income tax status.

* Goal: You want to get your tax refund/balance due down to zero to accurately determine your monthly cash flow and not give the government an interest free loan. Tax Projection Worksheet (email me for a copy)

Step #2 - Adjust your paycheck withholding accordingly:

* Goal: Adjust your withholding based on step #1 to arrive at a zero tax due/ refund and determine your maximum 401K contribution. Update your W-4 with your employer and begin having the proper amount of taxes taken out of your paycheck.
Withholding Worksheet (email me for a copy)

Step #3 - Determine your monthly budget

* Goal: Get a handle on your monthly cash flow to maximize your savings and retirement contributions and keep track of the activity in your main checking account and general finances. Budget Checkbook Tracker (email me for a copy)

2009-05-23T23:35:00.000-04:00

Money Saving Tips

Here is a list of money savings tips. Look how it all adds up!!
Skip the daily fast food breakfast and/or Starbucks coffee.
- Assumption Eliminate 3 days a week at $5 a day cost. $60 $720
Stop buying books and use your local library.
- Assumption eliminate 2 book purchases a month at $15 cost per book. $30 $360
Turn down your heat/air.
- Assumption turn down by 2 degrees ($150 X 5% $8 $90
Buy gas from the cheaper station.
- Assumption $0.05 savings/gallon (family 2 tanks/wk.) $8 $96
Use a credit card that give a 1% cash rewards.
- Assumption $1,000 c.c. purchases a month $10 $120
Switch to a credit card that offers 0% interest for one year for existing credit card carrying debt.
- Assumption $5,000 balance @ 8% $30 $360
Reduce your tax refund, don't give the government a free loan.
- Assumption $2,500 refund, 5% interest earned $11 $125
Eliminate your home phone and switch to cell phone.
- Assumption $60/mo. phone bill. $60 $720
Use coupons and member card when you grocery shop.
- Assumption $5 a week savings $20 $240
Grocery shop at walmart/target instead of regular grocer.
- Assumption average 5% savings $75/wk grocery bill $15 $180

TOTAL SAVINGS: Month / Year $252 $3,011

Jim's Ten Commandments Of Trading

2009-05-23T23:34:00.000-04:00

Jim's ten commandments of trading

- never turn a trade (short term) into an investment. (long term)

- your first loss is your best loss.

- its okay to take a loss when you already have one.

- never turn a trading gain (short term) into a investment loss. (long term

- (stock) tips are for waiters.

- you don't have a profit until you sell.

- control losses, winners take care of themselves.

- don't fear missing anything.

- don't trade headlines.

- don't trade flow.

25 Investment Rules to Live By:

2009-05-23T23:33:00.000-04:00

Jim's 25 investment rules to live by

- bulls make money, bears make money, pigs get slaughtered.

- its ok to pay the taxes.

- don't buy all at once.

- look for broken stocks not broken companies.

- diversification is the only free lunch.

- buy and homework, not buy and hold.

- no one ever made a dime by panicking.

- own the best of breed.

- he who defends everything defends nothing.

- the fundamentals must be good in takeovers.

- don't own too many stocks.

- cash and sitting on the sidelines are fine alternatives.

- no woulda, shoulda, coulda

- expect corrections.

- don't forget bonds.

- never subsidize losers with winners.

- hope is not part of the equation.

- be flexible.

- when high level people quit a company, something is wrong.

- patience is a virtue.

- just because someone says it on tv doesn't make it so.

- always wait 30 days after an earnings preannouncement.

- never underestimate the wall street promotion machine.

- be able to explain your stock picks to someone else.

- there is always a bull market somewhere.

Tool #57 - podcast #84 Elitetrader.com

2009-05-23T23:14:00.000-04:00

o http://www.elitetrader.com/
o Welcome to Elite Trader, the #1 community for active traders of Stocks, Futures, Options, and Currencies.
 Forums – Reviews and Comments on
• Brokers
• Software
• Books

Tool#56 (see podcast 83) Barron’s Stock Picks & Pans

2009-05-23T23:12:00.004-04:00

This feature tracks the performance of stocks Barron's has written about during 2009 -- both favorably and critically. For stocks featured in Barron's print magazine, prices are measured from the Friday before publication date to their current price. For stocks featured on Barrons.com, prices are measured from the trading day of publication date to their current price. This list includes U.S. stocks only, including ADRs, but not foreign stocks.

http://online.barrons.com/stockpicks-SC_BULL_P_2009_L

Tool#55 (see podcast 81) www.aaii.com

2009-05-23T23:12:00.003-04:00

American Association of Individual Investors
- AAII is a nonprofit organization that arms individual investors with the education and tools they need to build wealth. From stock investing to financial planning and retirement funding, AAII covers all your needs
- Get hookup up with the local chapters.
- Just $29/ year subscription.

Tool#54 (see podcast 80) GDP

2009-05-23T23:12:00.001-04:00

GDP is calculated by adding four numbers: (1) consumption, (2) gross investment, (3) government spending and (4) net exports.
o Consumption means short-term goods and services purchased by private consumers. Examples include rent, food, subway fares and entertainment.
o Gross investment is the amount private companies and people spent to purchase goods and services intended for long-term usage. Examples include new homes and factories.
o Government spending includes all expenditures by all levels of public agencies on both goods (i.e. procuring equipment) and services (salaries).
o Net exports: The difference between the total value of all goods and services exported from the United States and those imported from abroad. If the next exports number is negative (as it has been since 1982), the United States is said to be running a trade deficit; the opposite is a trade surplus.

Tool#53 (see podcast 78) Wash Sales (IRC §1091)

2009-05-23T23:11:00.002-04:00

Wash Sales (IRC §1091)
A loss from the sale of stock or securities in a wash sale is not deductible.

A wash sale occurs when a taxpayer sells stock at a loss and within 30 days before or after the sale:
1) Buys substantially identical stock or securities,
2) Acquires substantially identical stock or securities in a fully taxable trade
4) Buys substantially identical stock or securities in an individual
retirement account (IRA) or Roth IRA. (Rev. Rul. 2008-5)

Basis of acquired stock or securities. The basis of the newly acquired stock or securities is increased by the amount that has been disallowed due to the wash sale rules. This adjustment postpones the loss deduction until the new stock or securities are sold or traded. The holding period for the newly acquired stock or securities is extended to include the holding period for the stock or securities sold.

Example: I bought 100 shares of IMT stock for $5,000. Several months later I sold the shares for $4,000. Within 30 days from the date of the sale, I bought 100 shares of the same stock for $4,500.
Because I bought substantially identical stock, I cannot deduct my $1,000 loss on the sale.
My basis in the newly acquired stockis $5,500 ($4,500 cost + $1,000 disallowed loss).

Reporting a wash sale transaction. Report a wash sale transaction on line 1 or 8 of Schedule D. Enter the full amount of the loss in column (f). On the next line, enter “Wash Sale” in column (a), and enter the amount of the loss not allowed as a positive amount in column (f).

Trader. A trader in securities is engaged in the business of buying and selling securities for the trader’s own account. To be engaged in business as a trader in securities:
• A trader must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation.
• Trading activity must be substantial.
• A trader must carry on the activity with continuity and regularity.
The following facts and circumstances should be considered in determining if a trading activity is a business.
• Typical holding periods for securities bought and sold.
• The frequency and dollar amount of trades during the year.
• The extent to which a taxpayer pursues the trading activity to
produce income for a livelihood.
• The amount of time devoted to the activity.

Mark to market election. A trader in securities may elect the mark to market accounting method. Under the mark to market method, securities held as a trader are treated as being sold and reacquired for FMV on the last day of the tax year. Gains and losses are treated as ordinary gains or losses and reported on Part II, Form 4797, instead of as capital gains or losses on Schedule D. The mark to market election does not apply to securities
held by a trader for investment. [IRC §475(f)] The election must be made by the original due date of the tax
year prior to the year for which the election is to be effective. For example, the mark to market election for tax year 2009 must be made by April 15, 2009. Approval from the IRS is not required, but once the election is made, it applies for all later tax years and cannot be revoked without IRS consent. The election is made by attaching a statement to the tax return (or extension request) that includes the following information.
• The taxpayer is making an election under Section 475(f) of the Internal Revenue Code.
• The first tax year for which the election is to be effective.
• The trade or business for which the taxpayer is making the election.
A taxpayer who makes the mark to market election must file Form 3115, Application for Change in Accounting Method, with the IRS. The change to mark to market is eligible for automatic consent for a change in accounting method.

Further, neither the limitations on capital losses nor the wash sale rules apply to traders using the mark-to-market method of accounting.
See also Publication 550

Tool#52 (see podcast 77) http://www.proshares.com/funds

2009-05-23T23:11:00.001-04:00

http://www.proshares.com/funds

Making complex strategies simple to execute

ProShares, part of ProFunds Group, the world's largest manager of short and leveraged funds,¹ takes exchange traded funds (ETFs) to the next level. We make it easy to implement complex investment strategies in a single trade. Like ordinary ETFs, ProShares offer a simple way to gain exposure to market indexes. But ProShares also provides innovative new ways to manage risk and enhance return potential in your portfolios.

ProShares give you the versatility you need to make the most of new opportunities—in both up and down markets. All as easily as trading a stock. Read about the risks of ProShares.

Short ProShares

Short ProShares are the first ETFs designed to go up when the indexes or benchmarks they are based on go down (and vice versa). Use them to seek profit in a market downturn or hedge an investment.