I bought NEP today at 7.86 at the bottom of the daily bollinger bands. It was that combined with the fact that the market never discounts anything twice. So Lets think about this. Bernanke confirmed as chairman, Obama has slammed the banks and the market priced that in, then China is raising interest rates and that slammed chinese equities, Fed is keeping rates low here, and OBAMA’s speech is tonight, so with all that priced in and the market refusing to go lower today it was inevitably to go higher.
With that in mind and the constant selling off of all the markets I had named some prices on some equities that I wanted to enter.
NEP $7.86
NEP Pullback
CHBT $13
CHBT Chart Low
LIWA $7.95
LIWA Low
STEC $15
With that being said I made those entries today except for STEC, and started to add to it as the stocks climber higher into the close.
I was down about 400 yesterday on LIWA and then this morning it popped up to 8.38 and I sold for a $20 loss. I re-bought way lower. I think that was the turning point at least for a few days or weeks for the market. Currently I am up on all my positions except my hedge position just in case the market crashes.
Market Update:
Stocks spent most of the session mired in moderate weakness, but were able to push higher in the wake of the latest statement from the Federal Open Market Committee (FOMC)… The first FOMC policy statement of the new year came on the eve of a vote to put Ben Bernanke back into the seat of Fed Chairman. To little surprise the statement indicated that economic activity continues to strengthen and that the deterioration in the labor market is abating. The FOMC also opted to keep the federal funds rate at 0.00% to 0.25% and will maintain exceptionally low levels for an extended period of time. Kansas City Fed President Hoenig was the only FOMC member to dissent… A knee-jerk reaction to the statement caused stocks to whipsaw before they eventually pushed into positive territory. Financials, which had steadily outperformed since the opening bell, were a primary leader in the late advance. The sector managed to make its way to a 2.3% gain. Regional bank stocks (+3.7%) and diversified banks (+4.1%) were leaders in the sector. Their strength came amid news that Barney Frank, Chairman of the House Financial Services Committee, stated that proposals to clamp down on risky activities at banks could be put into law within months. Such measures would likely have more of an adverse impact on larger, diversified financial services companies, but even they were able to climb 2.4% this session… While financials provided leadership to the broader market, Apple (AAPL 207.88, +1.94) helped the Nasdaq Composite outperform its counterparts. Apple’s advance came amid a favorable reaction to the company’s newly launched iPad, as well as pricing for the product. News that Apple will rely on the network of AT&T (T 25.62, +0.29) provided support for the integrated telecom giant… There were several earnings announcements for participants to chew on this session, but the results were largely overshadowed by anticipation for the FOMC statement. Still, earnings continue to generally exceed expectations — Caterpillar (CAT 53.44, -2.41), United Technologies (UTX 67.61, -1.57), Boeing (BA 61.93, +4.22), Illinois Tool Works (ITW 43.99, -1.20), Abbott Labs (ABT 53.90, -0.58), and ConocoPhillips (COP 49.81, -0.62) were part of the latest bunch. However, some of the reports were of lesser quality and featured mixed guidance… Despite another underwhelming response to earnings, the stock market was still able to book a gain this session. However, all three major indices remain below their 50-day moving averages… Commodities were wrought with weakness this session. Not even a surprise draw in weekly crude oil inventories could deter sellers from dragging down oil prices to close pit trade with a 1.4% loss at $73.64 per barrel. Oil had been as low as $72.65 per barrel, which marked a one-month low… Collective weakness among commodities gave the CRB Commodity Index a 1.9% loss. That marks its worst single-session percentage slide in two months and leaves the CRB down 2.5% week-to-date… The latest batch of new home sales numbers were displeasing. According to the report, annualized new home sales for December made a 7.6% monthly decline, which contrasted negatively with the consensus call for a 3.0% month-over-month increase. Dow +0.4%, Nasdaq +0.8%, S&P 500 +0.5%, Nasdaq 100 +0.8%, S&P 400 +0.2%, Russell 2000 +1.0%
Great, great, informative, informative article from ShareSleuth.com. This will take sometime to read.
Federal authorities scrutinizing Vicis Capital execs
by CHRIS CAREY
Federal authorities are investigating the activities of two executives at Vicis Capital LLC, a New York hedge fund operator that began last year with nearly $5 billion under management.
Vicis is the biggest investor in a pair of small public companies that have been implicated in an insurance fraud scheme. The FBI and a grand jury have been examining what role, if any, representatives of the hedge fund played in that scheme.
The investigation has focused attention on the close relationship between Vicis and Midtown Partners & Co. LLC, a Florida-based investment bank that has paired Vicis with 20 companies whose shares trade mainly on the Over the Counter Market or Pink Sheets.
Sharesleuth learned of the probe while conducting its own investigation into Vicis. Our analysis of Securities and Exchange Commission filings shows that Vicis ultimately put more than $150 million into those companies, in return for stock, warrants, and notes convertible into shares.
Midtown Partners has collected at least $5 million in cash fees in connection with those transactions. It also has received blocks of stock and warrants that were worth millions more at the time they were issued.
The shares of many of the companies have plunged in value. Even the investments showing gains for Vicis are relatively illiquid, and the purported profits may exist only on paper.
Vicis and Midtown Partners did not respond to written questions submitted by Sharesleuth. The FBI declined to comment.
AN INSURANCE FRAUD CASE
The federal investigation involves two of Vicis’ portfolio companies — Medical Solutions Management Inc. (Pink Sheets: MSMT.PK), of Marlborough, Mass., and MDwerks Inc. (OTCBB: MDWK.OB), of Deerfield Beach, Fla. Over the past five years, the hedge fund has provided roughly $30 million in equity and debt financing to those companies.
A federal grand jury in New Hampshire has been hearing evidence in the fraud case, which revolves around falsified receivables for benefits covered by workers’ compensation plans.
Medical Solutions Management spent roughly $8 million to buy insurance receivables at a discount, under a deal signed in 2007. MDwerks took over the claims processing the following year.
Authorities believe that one or both companies learned that some of the receivables were bogus. But instead of reporting the problem, MDwerks continued collecting on them.
People familiar with the investigation told Sharesleuth that certain participants in the scheme have already been charged under sealed indictments.
The Vicis executive who has been implicated in the case is Christopher D. Phillips, who has been a managing director for nearly two years. He previously headed the parent company of Midtown Partners, which is based in Tampa and has been acting as a middleman for Vicis in equity and debt placements since 2005.
Partly because of its relationship with Vicis, the company ranks among the most active firms in the country in raising capital through so-called PIPE (Private Investment in Public Equity) deals.
Phillips was the point person for dealings between Vicis and Medical Solutions Management. He also sat on MDwerk’s board of directors. Shad L. Stastney, one of the hedge fund’s three founding partners, was a director of both companies.
Medical Solutions Management’s stock ended the year at 1.5 cents a share, down from a high of $10 in the second quarter of 2006. MDWerk’s stock is trading for 0.5 cents a share. It peaked at $1.55 in July 2007.
OTHER PRESSURES
In September, Vicis barred investors from withdrawing money after being deluged with $550 million in redemption requests. News reports at the time said that Vicis’ main fund was down 12 percent through the first eight months of the year, after posting a 14 percent gain in 2008.
Vicis’ most recent quarterly filing with the SEC listed $2.6 billion in investments as of Sept. 30, down from $3.52 billion at end of June and $5.08 billion at Sept. 30, 2008.
It is unclear what value Vicis places on its investments in the companies that were brought to it by Midtown Partners. The quarterly SEC summaries did not list any of those shares or notes.
Although hedge fund investments are typically reserved for the wealthy, the Vicis investigation has implications for the general public, because a number of pension funds have invested money with Vicis.
The West Virginia Investment Management Board had $37.8 million in assets with Vicis at the end of November. The Fort Worth Employees’ Retirement Fund, in Texas, said in August that it planned to increase its investment to $10 million, from $8 million.
(Disclosure: No one associated with Sharesleuth has any investment position, short or long, in the companies mentioned in this story.)
DEALS BETWEEN COMPANIES
Sharesleuth noted that some of the small public companies in Vicis’ portfolio have entered into daisy-chain deals with one another, often generating additional shares and warrants for Vicis and additional fees and warrants for Midtown Partners.
We also noted that some of the companies sold Vicis millions of warrants – in a few cases, tens of millions of warrants — that were exercisable at prices well below the prevailing market price of the shares. They also repriced existing, out-of-the-money warrants so that the hedge fund still could exercise them at a profit.
It’s possible that some of those transactions created temporary gains that boosted Vicis’ overall returns, making its funds more attractive to investors than they otherwise would be.
It’s also possible that those gains boosted the profit payouts for the hedge fund’s managers. Hedge fund operators typically charge a 2 percent annual management fee, and get 20 percent of any profits their funds generate.
THE HEDGE FUND
Vicis was formed in 2004 by three partners:
–John D. Succo, who formerly ran derivatives trading at Paine Webber Inc. and Lehman Brothers Inc.
– Stastney, a lawyer who had worked in derivatives at Credit Suisse First Boston, and
–Sky M. Lucas, who once managed convertible bond trading at PaineWebber and Lehman.
Succo is chief investment officer, Stastney is chief operating officer and Lucas is head of global convertible arbitrage. Vicis says it seeks to profit from volatility through arbitrage trading in stocks and options — exploiting temporary price discrepancies in similar, but related, securities.
A GROWING RELATIONSHIP
Vicis’ investments in the companies introduced to it by Midtown Partners represent a relatively small percentage of its assets under management. But the hedge fund has been making increasingly large bets on those microcap companies.
Its first placements through Midtown Partners were in the neighborhood of $1 million; more recently, it added $6 million to its stake in one company and $10 million to its stake in another.
Although Sharesleuth’s review of SEC filings turned up $5 million in cash placement fees paid to Midtown in the deals, the total is likely higher. Some filings did not enumerate payments for specific transactions; however, Midtown Partners’ contracts usually call for fees of 8 percent or more.
The ties between Vicis and Midtown Partners grew so close that Phillips went to work for the hedge fund in February 2008, stepping down from his position at Midtown Partners’ parent company.
Phillis is, or was, on the board of four of Vicis’ portfolio companies.
ASSET SHUFFLES
Sharesleuth noted that Vicis appeared to benefit from an asset shuffle last year involving Amacore Group Inc. (OTCBB: ACGI.OB), a Florida company in which it has a nearly 90 percent interest.
Amacore, which markets healthcare-related membership programs, spun off one of its divisions into a public shell at the end of July.
Vicis has $12 million invested in Amacore. It put a further $3.75 million into the spinoff, Zurvita Holdings Inc. (OTCBB: ZRVT.OB), a multilevel marketing company that sells discount medical benefits, residential utility plans and other products.
Zurvita also entered into deals with two other Vicis portfolio companies, buying assets from one and stock in another (read more on those transactions below).
SEC filings show that Vicis now holds convertible preferred stock equal to 36 million of Zurvita’s common shares. It also has warrants for an additional 36 million shares, some exercisable at 6.25 cents a share and some at 25 cents.
Zurvita’s stock, which has seen limited trading, ended 2009 at $1.20 a share. That gives the company a market capitalization of $67.7 million – more than double that of Amacore.
By our calculations, the spinoff of Zurvita and the additional $3.75 million investment boosted the imputed value of Vicis’ original holdings in Amacore by nearly $30 million, a figure that excludes the Zurvita warrants.
As part of its placement fee for the Vicis financing, Midtown Partners got warrants to buy 720,000 Zurvita shares, also exercisable at 6.25 cents a share and 25 cents.
THE MATH
Vicis said in an SEC filing in November that it held 891.3 million shares of Amacore’s common stock, and would hold more than 2 billion shares if it converted all of its preferred stock and exercised all of its warrants.
At the time of the spinoff, Amacore’s stock was trading for 4 cents a share, giving Vicis’ common shares a market value of just under $36 million. The stock ended 2009 at 2.5 cents, putting the market value at $22.3 million.
The Zurvita stock underlying Vicis’ preferred shares would have a current market value of more than $43 million.
At Amacore’s current average trading volume of just under 135,000 shares a day, however, it would take Vicis nearly two decades to unwind its position.
OMNIRELIANT HOLDINGS
OmniReliant Holdings Inc. (OTCBB: ORHI.OB) may provide the best example of the interrelationship between Vicis, Midtown Partners and other entities with ties to Midtown Partners or its parent company.
OmniReliant was created through a reverse merger in 2006. The company is based in Clearwater, Fla., and says it sells luxury products through infomercials, home shopping programs and other channels. Its offerings include a line of skincare products licensed to it by Kathy Hilton, the mother of socialite Paris Hilton.
Apogee Financial Consultants Inc., the parent company of Midtown Partners, got 3 million shares in the newly minted OmniReliant. Vicis provided $3 million in capital, in exchange for convertible preferred stock and warrants for 6 million common shares.
Midtown Partners received warrants for an additional 900,000 shares as a fee for arranging that placement.
Christopher Phillips was OmniReliant’s original chief executive officer and chief financial officer. He also was CEO of Apogee Financial and held a 50 percent membership interest in Midtown Partners, SEC filings show.
Vicis has since invested around $30 million in OmniReliant, through the purchase of convertible preferred stock, the purchase of warrants and the exercise of warrants.
Phillips remains on OmniReliant’s board of directors, and still is listed as the registrant of the company’s Internet domain.
According to SEC filings, Apogee and Midtown Partners received cash placement fees of $1.39 million from OmniReliant in the two years that ended June 30, 2009, and got warrants with a fair value of $7.09 million.
Those filings show that Vicis holds 138.4 million shares of OmniReliant’s common stock, along with warrants for 70 million additional shares.
OmniReliant had $7.63 million in revenue for the first quarter of its current fiscal year. It reported a loss of $15.8 million, with much of that attributable to accounting adjustments related to its financing transactions with Vicis.
OmniReliant had $9.55 million in revenue in its prior fiscal year, and posted a loss of $2.63 million.
END OF QUARTER STOCK MOVES
Sharesleuth noted that the market price of OmniReliant’s stock often rises sharply as the close of a quarter approaches. On Sept. 18, for instance, the price jumped from 40 cents a share to 99 cents a share on a trading volume of just 100 shares.
There were no other trades for the rest of the month, and the stock ended the quarter at 99 cents.
At the end of March, the stock shot from 35 cents to $1.01, on a day when 5,300 shares traded hands. And on the last day of December 2008, OmniReliant’s shares went from 60 cents to $1.
In each instance, the price moves lifted the market value of Vicis’ and Midtown Partners’ holdings at the end of the quarter back to the level where they had finished the previous quarter.
OmniReliant’s shares did not have the same kind of gain at the end of the latest quarter. The stock ended 2009 at 40 cents, after rising 5 cents in the last few trading days.
Vicis’ common shares in OmniReliant now have a market value of $55.4 million, down from $137.1 million on Sept. 30.
WARRANT DEALS
In July, OmniReliant and Vicis entered into a deal in which Vicis paid $5 million and got a warrant to buy 97.6 million common shares at 25 cents a share. The hedge fund surrendered an equal number of old warrants exercisable at higher prices.
At the time, the stock was at $1.01, although no shares had actually traded since late April.
Vicis also converted all 105.1 million of its preferred shares in OmniReliant to common shares, giving it a 96 percent stake in the company.
On Sept. 30, Vicis’ board agreed to reduce the exercise price of the new warrants to 20.3 cents. The hedge fund converted 27.6 million of the warrants to shares, paying a further $5.6 million.
On the day that Vicis completed that transaction, those shares had a market value of $27.3 million.
Sharesleuth found similar deals at other Vicis portfolio companies. In July 2007, for instance, Medical Solutions Management reduced the exercise price of Vicis’ outstanding warrants to a penny each, in return for a payment of $2.1 million.
Vicis then exercised all of its 37.7 million warrants — most of which had been priced at $1 to $2 a share — giving it a majority stake in the company. Medical Solutions Management’s stock price at the time was around $3.50, although trading volume was minimal.
RELATED PARTIES
In addition to using Midtown Partners as its placement agent, OmniReliant entered into a consulting agreement with TotalCFO LLC, another entity of which Christopher Phillips was managing director. SEC filings show that OmniReliant paid that company $429,000 in the two years that ended June 30, 2009.
Florida corporation filings now list Phillips’ sister, Natalie P. Collins, and father, Dale E. Phillips, as managing members of TotalCFO. Dale Phillips also is chief financial officer of Apogee Financial, Midtown Partners’ parent company.
OmniReliant paid Apogee Financial a $125,000 consulting fee for due diligence on a recent acquisition.
SEC filings show that OmniReliant has invested nearly $3.2 million in an entity called RPS Trading LLC, with more than $2.5 million of that coming in the past six months, after the company received another cash infusion from Vicis.
OmniReliant also bought a company called Designer Liquidator Inc., which owned 50 percent of RPS Trading, for $150,000 and 100,000 shares of stock.
Florida corporation records show that Christopher Phillips’ mother, Marilyn R. Phillips, was one of the managing members of RPS Trading, and was president of Designer Liquidator Inc.
Florida corporation filings also list Natalie Collins as managing member of Smallcapwatch LLC, a stock promotion web site that features profiles of OmniReliant and three other companies in which Vicis and Midtown Partners have stakes.
The corporation filings list the same address for all of the above entities except Apogee Financial — an office at 20711 Sterlington Drive in Land O’ Lakes, Fla.
That also is the business address for Debt Opportunity Fund LLLP, another entity that has provided financing to OmniReliant, MDwerks and several other Vicis portfolio companies.
MDwerks said in an SEC filing that Christopher Phillips’ wife, Tonya Phillips, had a minority ownership interest in Debt Opportunity Fund. It also identified Vicis as the manager of the fund.
Florida corporation filings list the general partner of Debt Opportunity Fund as another entity called Total Capital Management LLC. The person listed as Total Capital Management’s managing member is Christopher Phillips’ next door neighbor.
Sharesleuth also turned up a filing in the Florida divorce case of one of Vicis’ partners, Sky Lucas, that lists a joint bank account he held with Natalie Collins. The purpose of that account was not explained in the document.
NET TALK.COM
OmniReliant signed a marketing agreement last year with Net Talk.com (OTCBB: NTLK.OB), a Miami company in the Internet telephone business. The deal called for OmniReliant to get 1 million shares of Net Talk.com’s stock as compensation.
SEC filings show that Net Talk.com had previously issued 2 million shares of its common stock to individuals and entities connected to Midtown Partners and its parent company.
Vicis has invested $4.2 million in Net Talk.com, in return for notes that are convertible to 16.8 million shares of common stock at 25 cents a share. Net Talk.com’s stock closed Monday at $1.
Net Talk.com is built around assets it acquired from Interlink Global Corp. (Pink Sheets: ILKG.PK), another Vicis portfolio company that was introduced to it by Midtown Partners. SEC filings show that Vicis invested $3.5 million in Interlink Global between 2005 and 2007. That company’s shares now trade on the Pink Sheets for a fraction of a cent, down from a high of $3.04 in early 2006.
Ron J. Rule Jr. is director of product development for Net Talk. Documents show that he also is director of information technology for both OmniReliant and Midtown Partners, and is a managing member of SmallCapWatch LLC.
ZURVITA ALLANCE.
OmniReliant entered into a strategic alliance with Zurvita last year.
OmniReliant granted Zurvita a license to use and sell software for an online business directory and advertising platform called LocalAdLink. It got a $2 million convertible note from Zurvita, along with 3.8 million shares.
SEC filings show that OmniReliant acquired LocalAdLink from Beyond Commerce Inc. (OTCBB: BYOC.OB), another Midtown Partners client. OmniReliant had previously provided financing to Beyond Commerce, in deals brokered by Midtown Partners, and held more than $5 million of its convertible notes.
As payment for LocalAdLink, OmniReliant forgave $4 million of the notes and surrendered warrants covering 18.3 million shares of Beyond Commerce’s stock.
SEC filings show that Midtown Partners received at least $104,000 in placement fees on the original notes, plus warrants for 917,335 Beyond Commerce shares.
As part of the LocalAdLink transaction, Zurvita also bought 8 million Beyond Commerce shares for $800,000, or 10 cents a share.
Beyond Commerce’s stock is now trading for 2.8 cents, down from its peak of $3.30 in the summer of 2008.
OTHER PORTFOLIO COMPANIES
Vicis has poured roughly $25 million into Ambient Corp. (OTCBB: ABTG.OB), a Massachusetts company that offers high-speed data communication systems that utility companies can use to monitor their power grids. Ambient also has sought to develop a system for delivering broadband Internet over power lines.
Vicis said in an SEC filing in November that it holds 641 million common shares of that company, and would have more than 1.3 billion shares if it converted two promissory notes into additional shares.
Ambient’s stock has been trading for around 14 cents a share.
Vicis put $3.5 million into OptimizeRx Corp. (OTCBB: OPRX.OB), a Michigan company that offers online coupons, discounts or rebates on prescription and nonprescription medication. In return for that money in September 2008, the hedge fund got preferred stock convertible to 3.5 million common shares, plus warrants for 6 million additional common shares at $2 each.
Midtown Partners got a placement fee of $350,000. OptimizeRx said the fee also included warrants to buy 600,000 shares at $2 each and 350,000 shares at $1 each.
OptimizeRx’s stock closed Monday at $2.25 a share, although only 2,500 shares changed hands.
Sharesleuth noted that the chart of OptimizeRx’s major shareholders in its annual SEC filing lists a trust for the benefit of “Jillene Pinella” as the owner of 9.4 percent of its shares. Our research found that the name has been consistently misspelled in the company’s SEC filings, and that the beneficiary is actually Jillene Panella, the wife of Dante M. Panella, a Tampa-area financier and stock promoter.
The SEC brought civil charges against Dante Panella in 2008 in connection with a pump-and-dump scheme involving a company called Global Development and Environmental Resources Inc. The SEC alleged that Panella helped to hype the company’s stock, then profited by selling $1.1 million in illegally issued shares. A federal judge ordered him in November to pay $457,574 in disgorgement, interest and penalties, and barred him from participating in the offering of a penny stock for five years.
THE INSURANCE FRAUD CASE
Medical Solutions Management purchased the receivables at the heart of the fraud case from Deutsche Medical Inc., an Anaheim, Calif.-based company that also is a subject of the federal investigation.
Medical Solutions Management paid roughly $8 million, or 60 cents on the dollar, for receivables with a face amount of $13 million, according to people with knowledge of the company’s dealings.
The idea was to profit by collecting a greater percentage of the balance owed. Vicis provided much of the money through share purchases and loan guarantees.
MDwerks took over the collection of the receivables in early 2008. SEC filings show that Vicis increased its financial involvement in MDwerks at that point, and Phillips and Stastney joined its board.
Vicis put $7.5 million into the company in March 2008, in return for preferred stock that could be converted into 7.5 million common shares. It also got warrants to buy 53.3 million additional shares at 75 cents a share.
MDwerks’ stock was trading for 90 cents a share at the time, down from a high of $1.55 the previous summer.
THE PROCEEDS
MDwerks collected at least $4 million on the receivables through the end of last year, according to internal correspondence. But that money did not show up as revenue in the company’s quarterly or annual financial filings with the SEC.
MDwerks reported just $881,656 in revenue for 2008, and had a net loss of $8.18 million.
Medical Solutions Management was supposed to get a substantial cut of the collections money under the transfer deal with MDWerks, because the debt used to buy the receivables was still on Medical Solutions Management’s books.
But SEC filings show that Medical Solutions Management didn’t report anything close to $4 million in revenue from receivables in 2008, either.
DISCLOSURE QUESTIONS
Neither Medical Solutions Management nor MDWerks have fully disclosed the nature or scope of the investigation in their SEC filings.
Medical solutions olutions reported last Jan. 27 that its president and interim chief executive, Lowell M. Fisher, had resigned. It said in its filing that his reasons for leaving included his wife’s recent death and his “awareness of an ongoing federal investigation” involving the company. It did not elaborate on that probe.
Stastney resigned from Medical Solutions Management’s board the following day.
MDwerks did not mention the investigation until April 15. It noted in its annual filing with the SEC that it had been informed of “an ongoing jury investigation involving certain workers compensation claims which may involve Medical Solutons Management Inc., a former client of MDwerks Inc.”
MDwerks said only that it provided support services to Medical Solutions Management in connection with the collection of claims. It added that it had not been contacted by authorities, and was not aware that it was the subject of any investigation.
MDwerks had reported on Feb. 20 that Howard B. Katz, its chairman and chief executive, resigned. The company cited no reason, and noted that Katz would remain a consultant under a contract worth $240,000 a year.
MDwerks said in an SEC filing 0n Aug. 14 that Stastney had resigned from its board. It announced Oct. 8 that Phillips also had stepped down. The company offered no explanation for either departure, except to say that they were unrelated to any differences over the company’s operations, policies or practices.
Sharesleuth will keep following this investigation and report on what we find.
Justin McLachlan and Patrick Danner contributed information to this report. SaarResearch.com provided fact checking services. published January 5, 2010
http://csquaredtrading.com/forum/viewforum.php?id=2
We enter trades and it may take a while for them to take off but inevitably our subscribers are will and able to wait. If you join you will not be disappointed because we train you on all levels to do a good job managing your own portfolio. Don’t be part of the next decade where your returns are minimal!
See you inside, and if you haven’t already download SKYPE for free www.skype.com and search Ben.Brinneman and ask me to add you to our trading room! Alot of our really good research comes via email so sign up immediately and we will give you a free gift.
Ben Brinneman
The C Squared Trading Team
A buyer had questions…. I answered!
Check it out below, please get on SKYPE and search Ben Brinneman if you have any questions.
does your course complement the service?
C Squared Trading: not sure of the question
C Squared Trading: But the course will be seperate from the stock alerts which are a monthly subscriptional deal 
Please purchase here, well worth the money and time. www.csquaredtrading.com
mustafasavliwala: So does the alert service require you to be online all day
[12/6/09 5:23:47 PM] mustafasavliwala: trading?
[12/6/09 5:24:07 PM] C Squared Trading: you can be online all day or whatever you want
[12/6/09 5:24:38 PM] mustafasavliwala: what is yoru typical alert like?
[12/6/09 5:24:50 PM] C Squared Trading: we are online all day, the alert service is great with emails and if you have a mobile we can send you alerts via your mobile
[12/6/09 5:24:51 PM] mustafasavliwala: i have signed up for your three day alert
[12/6/09 5:25:00 PM] C Squared Trading: let me send you one real quick
[12/6/09 5:25:04 PM] mustafasavliwala: sure
[12/6/09 5:25:18 PM] mustafasavliwala: are you alerts always urgent
[12/6/09 5:25:39 PM] mustafasavliwala: if i get the alert service what will the course do for me?
[12/6/09 5:25:56 PM] C Squared Trading: oh the course is where the secrets are
[12/6/09 5:26:11 PM] C Squared Trading: nobody has anything like this, we train hedge fund managers
[12/6/09 5:26:20 PM] mustafasavliwala: so if I buy the course I can do what you do
[12/6/09 5:26:25 PM] C Squared Trading: and investment gurus how to better purchase equties
[12/6/09 5:26:29 PM] C Squared Trading: yes
[12/6/09 5:26:31 PM] mustafasavliwala: really
[12/6/09 5:26:41 PM] mustafasavliwala: i graduated from wharton and i am impressed
[12/6/09 5:26:45 PM] C Squared Trading: the alerts are both longterm and shortterm
[12/6/09 5:26:55 PM] C Squared Trading: so some are urgent
[12/6/09 5:26:58 PM] C Squared Trading: and some arent
[12/6/09 5:27:06 PM] mustafasavliwala: can you send me a sample one
[12/6/09 5:27:13 PM] C Squared Trading: here is an example send me your email address real quick and I will send it over
[12/6/09 5:27:22 PM] mustafasavliwala: mustafans@gmail.com
[12/6/09 5:29:02 PM] mustafasavliwala: how long do you hold your positions
[12/6/09 5:29:27 PM] C Squared Trading: hours to weeks
[12/6/09 5:29:31 PM] C Squared Trading: to years
[12/6/09 5:29:37 PM] C Squared Trading: it depends
[12/6/09 5:29:41 PM] mustafasavliwala: so it is all over the map
[12/6/09 5:29:46 PM] C Squared Trading: right now I am in CHOP from 4.88
[12/6/09 5:29:51 PM] mustafasavliwala: it is an investment cum trading program
[12/6/09 5:30:09 PM] mustafasavliwala: how would one allocate the monies then
[12/6/09 5:30:27 PM] C Squared Trading: it is for anyone just depends what your timeframe is like, the strategy applies to all…
[12/6/09 5:30:35 PM] C Squared Trading: what is your timeframe?
[12/6/09 5:30:44 PM] mustafasavliwala: let us say i start with 25K how much do i allocate to each trade
[12/6/09 5:31:26 PM] C Squared Trading: oh I gotcha we will tell you exactly how many shares we purchase and where we purchase and then you will follow in a fashion that you feel is best for you.
[12/6/09 5:31:49 PM] C Squared Trading: one time I bought 1000 shares of GNW and my subscribers followed with 10,000 shares each
[12/6/09 5:31:56 PM] mustafasavliwala: I see
[12/6/09 5:32:03 PM] C Squared Trading: it all depends, percentage is what matters
[12/6/09 5:32:09 PM] C Squared Trading: we also have a new course
[12/6/09 5:32:15 PM] mustafasavliwala: but if i buy a 1000 shares at 10 dolalrs
[12/6/09 5:32:20 PM] C Squared Trading: that is coming out in a week or so
[12/6/09 5:32:20 PM] mustafasavliwala: it is 100000
[12/6/09 5:32:44 PM] mustafasavliwala: i mean 10000
[12/6/09 5:32:45 PM] C Squared Trading: no its $10,000 not 100,000 as you just put
[12/6/09 5:32:46 PM] mustafasavliwala: sorry
[12/6/09 5:32:47 PM] C Squared Trading: ok
[12/6/09 5:33:10 PM] mustafasavliwala: so now if you keep churning out trades…
[12/6/09 5:33:30 PM] mustafasavliwala: at somepoint I may miss out
[12/6/09 5:33:46 PM] mustafasavliwala: if I run out of capital
[12/6/09 5:33:51 PM] C Squared Trading: what is your time frame
[12/6/09 5:34:17 PM] mustafasavliwala: i have accounts for different timeframes
[12/6/09 5:34:43 PM] mustafasavliwala: i have 401 K accounts with 10 year time
[12/6/09 5:34:45 PM] mustafasavliwala: frame
[12/6/09 5:34:53 PM] mustafasavliwala: and some trading and short term accounts
[12/6/09 5:35:07 PM] mustafasavliwala: with 1 year or less time frame for generating income
[12/6/09 5:35:28 PM] C Squared Trading: i have some traders just like you
[12/6/09 5:35:46 PM] C Squared Trading: all will work I have trades for all time frames
[12/6/09 5:36:03 PM] mustafasavliwala: do you tell us before hand the time frame
[12/6/09 5:36:03 PM] C Squared Trading: i have a stock that right now I belive could be the next Chevron
[12/6/09 5:36:06 PM] C Squared Trading: yes
[12/6/09 5:36:09 PM] mustafasavliwala: i see
[12/6/09 5:36:14 PM] mustafasavliwala: so you are explicit
[12/6/09 5:36:28 PM] C Squared Trading: yes but what is even more informative is the course
[12/6/09 5:36:41 PM] mustafasavliwala: So you think I should buy the course
[12/6/09 5:36:47 PM] mustafasavliwala: and get the alerts
[12/6/09 5:36:54 PM] mustafasavliwala: is there a package deal?
[12/6/09 5:37:53 PM] mustafasavliwala: do you give exit signals too?
[12/6/09 5:38:00 PM] C Squared Trading: yes
[12/6/09 5:39:35 PM] C Squared Trading: if you buy the course for $299 the alerts per month are $49.95 that is the deal. I would highly recommend the course because it will instruct you in a tremendous way.
[12/6/09 5:40:33 PM] C Squared Trading: I could give you the first month free of alerts as long as you purchase the course before tomorrow. and we will be here on SKYPE many more services come with this deal i will be calling you after a few days to profile you
[12/6/09 5:40:52 PM] mustafasavliwala: what is your next course?
[12/6/09 5:40:58 PM] mustafasavliwala: OK i will buy it today…
[12/6/09 5:41:54 PM] mustafasavliwala: done
[12/6/09 5:41:59 PM] mustafasavliwala: just bought the course
[12/6/09 5:42:24 PM] mustafasavliwala: the email address i bought it under is websitecc@gmail.com
[12/6/09 5:43:25 PM] mustafasavliwala: downloading it
[12/6/09 5:44:29 PM] C Squared Trading: ok cool
[12/6/09 5:44:38 PM] C Squared Trading: will add you to the alerts
[12/6/09 5:45:17 PM] mustafasavliwala: could yo add mustafans@gmail.com
[12/6/09 5:45:21 PM] C Squared Trading: yes
[12/6/09 5:45:22 PM] C Squared Trading: also
[12/6/09 5:45:28 PM] mustafasavliwala: thanks
[12/6/09 5:45:38 PM] mustafasavliwala: I check that email more often
[12/6/09 5:46:12 PM] mustafasavliwala: i am looking forward to going through your course and trading more
[12/6/09 5:46:17 PM] C Squared Trading: we have a hedge fund technician that tradesmillions for investors worldwide and he gave us a tool that we are wrapping our strategy around.
[12/6/09 5:46:25 PM] C Squared Trading: it is insane
[12/6/09 5:46:36 PM] mustafasavliwala: is that tool explaned in the course
[12/6/09 5:46:39 PM] C Squared Trading: ok you will need to download think or swim for charting
[12/6/09 5:46:50 PM] mustafasavliwala: i already have an account
[12/6/09 5:46:52 PM] mustafasavliwala: with tos
[12/6/09 5:46:59 PM] C Squared Trading: that tool is not in the current course we are currently puttin that together
[12/6/09 5:47:01 PM] mustafasavliwala: and optionshouse
[12/6/09 5:47:01 PM] C Squared Trading: great
[12/6/09 5:47:07 PM] C Squared Trading: thanks for buying
[12/6/09 5:47:09 PM] C Squared Trading: also
[12/6/09 5:47:20 PM] C Squared Trading: what and where do you trade with etrade ameritrade
[12/6/09 5:47:21 PM] C Squared Trading: ??
[12/6/09 5:47:28 PM] mustafasavliwala: no
[12/6/09 5:47:55 PM] mustafasavliwala: i used to cancelled
[12/6/09 5:48:01 PM] mustafasavliwala: and switched over to tos
[12/6/09 5:48:12 PM] C Squared Trading: The seminar may be a little slow but go thru it carefully, in a few days I will highlite the seminar that you are downloading and we will go over some very important secrets in trading
My Friends Dad wrote this. Enjoy, very informative even if it was written a few years ago.
Liar’s Poker*:
How Central Bankers Fritter Away Their Time (and Ours)
John Hathaway
*A trivial game of bluff. It is played using randomly picked currency from your wallet. The denomination does not matter.
Gold has topped $600/oz. for the first time in 25 years. Unfortunately, for real contrarians, it is making front page news. However, financial media commentary remains fairly ignorant on the subject. The preferred explanations for gold’s rise are mostly benign: it’s the Chinese and the Indians (ooh, they just love bangles, it’s part of their culture); it’s the allocation to commodities that has grown so popular (tangible assets are the rage with all the savviest hedge funds-the Chinese need so much more stuff); it’s the difficulty of bringing new mines into production (you know, the tree huggers hate mining so much); it’s the central banks who have decided that selling gold was not such a great idea in the first place and have now shied away from dumping their reserves (just a bunch of stupid bureaucrats, anyway). These “explanations” all have an element of truth. Any reader of our past website articles would have seen it coming.
However, the Wall Street Journal, CNBC and the equivalent will not tell you that gold is rising because there is a surfeit of paper assets. They will not tell you that a rise in the gold price has historically been a harbinger of bear markets in bonds and stocks and hard times for the financial business. The Pavlovian response of the financial media to the crossing of the $600 threshold was as predictable as their inability to comprehend or to portray the significance.
In truth, the price of gold at $600 is no big deal. In 1980 dollars, it is only $300. If prior highs mean anything, a target of $1700 in today’s dollars is what investors should be thinking about. In our view, gold remains cheap, another sign that the financial markets continue to under-price risk. Investors should worry less about whether this particular moment is a good or bad entry point and ponder the implications of sailing through uncharted waters without a lifeboat.
A seasoned investor, looking at the recent histrionics in the precious metals markets, could be forgiven for thinking: (1) wait for a substantial pullback, or (2) it’s all over. Bull markets conspire to throw most investors off the scent so that as few as possible climb aboard or last for the entire ride. Recent volatility is not climactic, terminal action, but rather, a demonstration of how little physical gold there is in relation to paper assets seeking safety.
As with most markets, gold is smarter than those who observe it. One can only try to guess what the surge in the metal is saying. We know that gold thrives on credit worries causing investors to re-price safety by marking up the metal. But on the surface, there appear to be no credit worries. Foreign central banks continue to extend credit to US consumers and businesses by accepting dollar denominated IOU’s for their exports. Domestically, not even the weakest of borrowers, sub-prime and junk credits, are turned away from the spigots of liquidity. How then can we explain the puzzle of a rising gold price against contracting credit spreads? The chart below shows that the history of gold versus credit spreads has correlated positively until very recently:
gold chart
The recent disconnect in this series suggests the possibility of a tectonic shift in the structure of credit. One very good explanation might be the proliferation of credit default swaps (CDS). In a recent interview (March 24, 2006-Welling @Weeden) by Kate Welling, Michael E. Lewitt states: “Credit derivatives have been a major enabler of the current credit bubble. The advent of credit derivatives freed speculators from the constraints of the cash bond market, enabling them to place bets on individual credits-regardless of the amount of debt actually outstanding.” Mr. Lewitt added that in many cases, the notional value of credit derivatives exceed the amount of underlying debt by several times. The OCC numbers below reflect CDS exposure for banks only and does not include that of hedge funds.
statistics
Hedge funds and money center banks dominate credit swap issuance and this activity is an important component of their income. Could the phenomenon of unregulated sectors of the financial industry extending de facto credit be a recipe for disaster? Without credit default swaps, marginal borrowers would be shut out from credit, the global economy would lapse into recession, and bad investments would be wiped off the books. Instead, CDS’s keep weak credits afloat, compound bad investment decisions, and deepen the ultimate retribution from misdirected capital.
Traditional credit analysis centered on how the borrower would repay his debt based on the study of balance sheet and cash flow statements. In our new system of credit default swaps, traditional credit research is replaced by a financial market version of particle physics applied to bets on the future trading price of debt instruments. Debt repayment is an incidental thought.
As long as interest rates all along the yield curve do not become unruly, the game can continue. Market confidence in Fed policy is a key component of this apparent stability. By raising interest rates so far, the Fed appears to be in control, and the financial markets are soothed by the perceived wisdom of their actions. But who will be comforted if the Fed is still raising rates a year from now to 8% or 9%? Lewitt notes that the Fed should keep raising rates not because inflation is the big issue, but because of credit speculation. What is the tipping point on the cost of money for credit basket cases? Gold knows that there is a ceiling to the Fed’s “discipline” and is anticipating the day when the Fed’s affectation of sure handedness becomes patently meaningless.
Signs of trouble ahead for financial assets frequently emerge in the foreign exchange market. It is true that the recent weakness in the dollar reinforces a bearish outlook for financial assets. But because the foreign exchange value of the dollar reflects government policies rather than free market forces, those expecting the dollar to “fall out of bed” may have to wait a while longer. We expect a dollar crash, but later rather than sooner. No important trading nation wants the dollar to implode because it would deflate American buying power and cause global recession. For the foreseeable future, it is in the common global interest to pretend that the dollar is worth more than it is.
While there may be some further weakness ahead, be prepared for coordinated intervention to prop up the greenback. This could even include attacks on the gold price. For what the matrix of CDS derivatives is to the universe of weak credits, the dollar is to global commerce. There are no present day analogues to Jacques Rueff or Charles de Gaulle to speak the truth about the dollar. Instead, muddle-headed policy makers of all nationalities prefer to play liar’s poker to distract attention from substantive issues. They would prefer to be overtaken by a monetary crisis, which would allow some to play the hero, instead of dealing proactively.
Is the price of gold rising or is the value of assets measured in dollars, yen, or euros falling? It would be an easy question to answer if currencies were anchored to a fixed, universally accepted benchmark of value. In the absence of such a reference point, it is much more difficult to ascertain economic returns, and more likely that investment mistakes will continue. The common perception is that the price of gold has been rising. However, it is more illuminating to see that assets, commonly thought to be generating acceptable investment returns, are falling in terms of gold or real money. The underperformance of home prices, commodities, equities, and bonds relative to gold (see charts) anticipates that the mass culture of the investment world will come to reassess the attractiveness of these capital destinations.
charts
Dollar denominated treasury debt, not gold, is the modern world’s benchmark of value, the global unit of account and store of value. Gold was written out of the script long ago. The metal was demonetized and demonized by policy makers in the 1970’s. For example, William Simon, Secretary of the Treasury under Nixon, complained that there was just not enough of it to go around. The risk free treasury rate has displaced the barbaric relic as the universal anchor of financial asset valuation. Equity market valuation models are dependent on the “risk free” returns from government debt. Home mortgage rates have a similar link, and by extension, housing prices. Tradable goods, pouring across our borders from recently built (and theoretically profitable) foreign factories, are attractively priced to US consumers because foreign governments accept and hold for investment US government issued paper at yields deemed suitable for such purposes by a committee of Fed governors.
But how does the world figure out the real investment return on US government paper? It is a simple proposition, and it must, to be so widely used. The chart below shows the relationship between the so called real interest rate and gold. The “real” is the nominal rate on 90 day treasuries less the latest twelve month consumer price index (CPI). It can be seen from the chart that the historical relationship between gold and real rates is inverse. High real interest rates are poison to the metal.
more charts
What the chart does not show is that the “real” interest rate is qualitatively different from its antecedent of 25 years ago when gold scaled the $800 mark. The real interest rates of the 1970’s and those of 2006 are not apples to apples. What has changed is the measurement of the CPI. Had that index been measured consistently over the past twenty five years, today’s real interest rates would be a negative 300+ basis points instead of a positive (but still paltry) 1.1%. What has changed and why? Policy makers, of all political persuasions, felt that a fixed measure of inflation was every bit as inconvenient and restrictive as the gold standard. The intent and effect of such changes has been to deceive the public as to the real value of the dollar and thereby to devalue all government obligations including, and possibly especially, social security payments.
How did they get away with it? The Byzantine answer reflects the machinations of unaccountable “public servants” remote from public oversight. The first notable change was courtesy of Arthur Burns, the longest serving Fed Chairman prior to Greenspan. He introduced the notion of a “core” inflation rate in 1973-74 to marginalize the impact of food and energy. That clumsy and artless first step set the precedent for multiple successive tweaks in the measurement process which are expertly documented by John Williams on his excellent web site, www.shadowgovernment.com. The changes include geometric weighting, hedonic pricing, chain weighted pricing, seasonal adjustments, intervention analysis and more. Please go to the website for extensive discussion of the details.
The bi-partisan movement to alter the CPI gained full force during the Clinton administration and was driven, according to Williams and others, by Michael Boskin, chief economist to the first Bush administration and Fed Chairman Alan Greenspan. The Boskin Commission proposed numerous changes to the calculation of inflation and the recommendations were implemented during the first term of the second Bush administration. The Commission produced a lengthy report, cloaked in the rhetoric of academia and therefore incomprehensible to public understanding, similar in spirit to the pages of disclosure one can find in the footnotes and prospectuses of the junkiest of junk investments. The chart below shows the CPI calculated in a manner consistent with pre- Boskin methodology compared to what is reported to create the appearance of tame inflation. Today’s inflation rate exceeds 6%, versus the supposedly tame 3+% widely reported. Among other side effects is the reduction of social security benefits, which Williams calculates would be 43% higher under the old methodology.
charts
Our simple thesis is that a unit of account as flawed as the dollar renders intelligent capital allocation decisions all but impossible. The macro economic implications are not good. False reads on investment returns across a wide spectrum, if repeated over many years, lead to capital destruction and potentially severe economic contraction. If the dollar is not what it seems to be, so are returns on capital.
The central investment rationale for gold is that paper is untrustworthy. The trust in dollar assets displayed by world central banks and public officials is a mere convenience to camouflage disorder in public finances and unmanageable economic imbalances. Dollar deception, both intentional and unwitting, has succeeded for decades. The pictures below show a few paper currencies vaporized by inflation.
Is there a fundamental difference between the Reichsmark, the Zimbabwe Dollar, and the US dollar? The answer is no. They are all government backed cash notes. There is a relative difference, however, in that the current global monetary regime centered on the US dollar has far greater resources to back it up than the others. This explains why it has taken 25 years for the dollar to lose half of its value. (All data based, of course, on official statistics.) Poor Zimbabwe, without such resources, introduced the latest version of its dollar in 1999, only to see it lose every bit of its value by the close of 2005.
Not the least among the resources propping up the dollar is the residue of trust enjoyed by this brand of paper currency that has been earned over centuries of history. Its demise has been managed with great skill and subterfuge. Therefore the pace has been slower and at times imperceptible compared to the more notable flameouts. Still, the end result, however long it takes to materialize, will be the same. It will be replaced, redesigned and redefined. Do not doubt that the game of liar’s poker will continue with replacement dollars. It is unlikely that politicians will ever appreciate or understand the difference between cash and money. For the political class, cash in the form of state issued IOU’s will always be the preferred form of legal tender. How else would they ever be able to play liar’s poker? Imagine trying to do that with real money that has kept is value for more than two millennia.
We provide research like this all the time and it will constantly keep you informed.
C Squared Trading!
- Show quoted text -
–
Until next time;
HAPPY TRADING!
the C² Trading Team
Visit C² Trading at http://csquaredtrading.com
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C² Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
What will cause a person to lose money or assets according to the Bible? What do we need to be focused on in Life in order to be diligent and successful at what we do? Read over these and observe if these are some bad habits in your life…
1. Excessive laziness. Proverbs 20:13,24:33-34
2. Excessive eating (gluttony) or drinking alcohol. Proverbs 21:17, 23:21, 31:6-7
3. Follows the advice of a vain person. Proverbs 28:19
4. Refuses instruction. Proverbs 13:18
5. Loves pleasure. Proverbs 21:17
6. Is involved in sexual deviant sins. Proverbs 6:26
Just based off these biblical facts it would behoove us to live a life worthy unto the Lord and to build integrity and character with what we do in life. Many fools have lost their wealth, assets, through these futile endeavors of worldly pleasures. If one can serve God and not money then he will live a much longer and happier life. Wealth and prosperity are things that take time to build and require a focus above any other! The focus first must come from a core of character, integrity, right understanding of money, preservation of capital, a right meaning relationships, an understanding of your purpose in this universe. Are you investing in eternal matters, or short-term futile matters?
I have found that if any of the 6 items mentioned above are practiced while in business, you start to lose your edge… your mind, soul, and body start to long for those things and the focus is shifted over to the pursuit of those items as opposed to remaining focused on your work. Your work or your business may be trading, investing, working at a grocery store, working with computers, golfing, a mom, whatever it may be that is your job or task to focus your entire energies upon. If you start to lose that focus, your performance will fall to shambles.
So I am here to promote the focus of what we do in life… being that it is Sunday (The Lord’s Day) I feel that this is an appropriate subject to bring us in line with what we need to be doing for the week. I am a trader. I get into a position according to the charts and I exit according to the charts. If you are a wife, husband, dad, mom, or daily white collared worker what is it that you are supposed to be doing? What are some things that you can focus on to become better at your job? For me it is to obtain a large sum of rest so that I am fresh in the morning and all the way to the close of the market. I need to learn to focus on the present and what is happening right now in the market and not speculate. I shouldn’t let other positions I am holding distract me from scouring the market to find another marvelous trade or investment. Post-market, I need to take a break and go exercise, this clears my body and mind of the days stresses… after the exercise I can now go write a blog-post for the day!
These are just a few of the things that I need to do for my daily task, but if you notice the Bible mentioned that a pursuit of those 6 items lead no where good! What are the item that do lead somewhere desirable?
Solomon wrote, Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth (Ecclesiates 11:2). Solomon was the richest man on earth and he learned to aqcuire massive amounts of wealth out of one desire… Wisdom. Wisdom is what he asked for and because of that he grew his empire to what it became! We must seek wisdom, counsel and wise investment principles and above all else a strategy that encompasses all these things.
We have a strategy that encompasses all of these items and my partner and I are willing and able to help anyone become a more excellent trader and investor. The problem is that there are tons of lazy people out there that dont have the will or desire to take what was recently written here and apply it. I beg the question how are we doing this full-time without having to work a real job? Well the truth is, if you treat this as a real job you will begin to see that it can be profitable and life changing. Please don’t hesitate to email us with questions at support@csquaredtrading.com Our strategy will teach you to become a more profitable trader and investor. An example is a millionaire friend of mine loves certain equities to invest in, however he seems to always buy at the top, so after sitting down and reading my strategy he is finally learning to buy low or in his case WAY LOWER than before and creating a good margin of safety in his accounts! I have saved him about $15,000 to date just by helping him buy lower. This strategy and course is priced at a measly $299 and the application of will reap you thousands if applied correctly, so it makes $299 seem like peanuts.
So apply wise principle from the Bible in your life, seek counsel, get feedback, and obtain a profitable strategy all here at your one stop shop!
Until next time;
HAPPY TRADING!
the C² Trading Team
Visit C² Trading at http://csquaredtrading.com
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C² Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
Oh Dubai!
An entire New York City was pretty much built overnight (2 years). The worlds tallest tower, false land masses, ostentatious spending, and gaudy monstrosities everywhere! To go along with this there is a disparity between the social classes, rich and poor, and no middle class.
Middle class needs to be there, you cannot just have palaces and zero homes. (more on that later) This city has racked up billions in debt and almost overnight. This is a scary thing, its kind of like the massive internet tech bubble and what happened in the 90’s. You cant just build everything up in a hurry and expect the spike in buying not to stop, nor the rich to continue to ride around on their yachts when the global economy is at it’s worst!
So the arabs never considered that and they also missed out on thinking for a middle class and providing a steady proven economy. They wanted this place to be a paradise for the rich and never considered that the economy might take a turn for the worse and a lot of what they built would be a futile waste of time and energy as the fat wallets of the rich became more conservative. However, they never got that wealthy without some brains… so they will figure a way out of this whole debacle.
The british banks seem to be the banks that are the most exposed to this 60 billion dollar fund that is asking for a stay on its debt. The Americans banks do not seem to have much exposure to Dubai. So this may just blow over in the next week as it is overshadowed by what the American consumer is doing and has done yesterday and thru the weekend with their holiday spending.
Until next time;
HAPPY TRADING!
the C² Trading Team
Visit C² Trading at http://csquaredtrading.com
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C² Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
Greetings,
Tonight I spent hours researching, and drawing trendlines all over charts, its getting crazy in my den!!!
GNW I found that major support is at $7.00- $7.20 BUT on the 55 minute interval chart used on ameritrade’s strategy desk charts, it seems to be in a channel heading down, and it is at the bottom bollinger band/channel and the $9.40-$9.50 range. Today we saw it go as low as $9.17 and if this level holds here it may turn upwards for a nice swing to the upside with resistance at $10.55 IF IT FAILS I could see it going as low as $7.50 -$8 IF it heads to this level at $7and $8 and fails this $9 it could be a good short to those levels… However if you choose to go long at those lower levels, scale in at $7.20 with a third of your position and at $7.00 for another third etc…See the chart example attached for a more clear picture of the trendlines that are drawn.
MIC I found that major support is at $7.00 – $7.20 level BUT on the 55 minute chart it also is in a channel heading down but has had 6 consecutive down days ie 6 red candles. IF it hold this level at 8 and the moving averages start flattening out then this $8.00 mark could be a good place to get in, however if it fails 8 and cannot surmount the $8.40’s tomorrow then we could see $7 and $7.20 at this level you would also want to scale into the position. This trade could make for a great swing trade from those prices! See chart example and how there is no resistance between $8 and $7…
APL also has good support at the $7 range BUT I would like to see AND you prolly will see $6.80 – $6.86 which would be a great trade for the short term.
PCX is really tough to determine where it will go next…
BAC seems to be at support on the 55 minute chart and if it holds here could be a GREAT buy, BUT BUT BUT be very cautious as the next level of support is in the $13.50’s and maybe lower price range, and if this is the case, would make an AMAZING Short if it breaks here below $15 or you could buy the put options on it if it cracks below $15 and make a nice profit. See chart for more clarity two charts are included with BAC a 55 minute chart to see the Stock trying to turn and a daily chart extending back to the march lows where you can easily the support lines drawn out.
LNC If this fails this level here at 23.50 there is really no resistance until 20
HIG If this fails this level here at the $24 there is also hardly any resistance until the $18’s BOTH LNC and HIG could be great shorts if they crack these levels of support!!!
If you want the full charts then please subscribe to our stock alerts and you will receive emails like this quite often!!!
Thanks!
Until next time;
HAPPY TRADING!
the C² Trading Team
Visit C² Trading at http://csquaredtrading.com
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C² Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
Last night after hours we saw AAPL beat earnings by 47% and saw the stock go from $188.50 ish to $204 in just a few minutes. We bought 100 shares and a dollar later we sold as we traded in and out of it. This is what we like to call an earnings play, and even today we pumped a few hundred dollars out of the stock as it continues to hit our buy indications and sell indications.
Our subscribers made another few thousand dollars today on a GNW stock alert this morning at 10 am.
They have a really cool I Mac that came out check out their new video
One funny thing about AAPL is that they are so cash heavy they could crush you with their wallets and that is definitely a reason to like the company!
This company is keeping their products in the spot light and and as long as they do that and continue to release new ones and be innovative this stock could really see $235 in the near term. They have come such a long way as a company but like anybody else they have their up and down cycles. Everybody knows that AAPL is going alot higher therefore its resilience in a down market like today.
On days like this individual stocks have been pulling back and getting nice retracements and may go lower before there is another ideal time to get in.
Until next time;
HAPPY TRADING!
the C² Trading Team
Visit C² Trading at http://csquaredtrading.com
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C² Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
Congrats to OBAMA for receiving the Nobel Peace Prize, or as FOX news headline said: “Obama caught taking bribe from Sweden.” Funny funny!!!
In penny stocks you can make a ton of CASH or lose a ton…
Penny stocks are defined by the book as being a stock under $10 some define them as being under $5.
Most people literally think pennies when they think of penny stocks. The way I see it, is a stock under $5. I have a list of these that I watch and really like to trade, but like any other stock that you pick, you must do the research.
We will walk through a few things to help you identify how to find the correct penny stocks.
1. Technical Analysis: Going by the charts.
For example if you look at SNWT they are in an up pattern and on a chart they look really good for a buy right now. How do I know that. If you look at this chart you can see that they ran up to about $1.65 and fell back to the 1.10’s. Percentage wise… this is a huge drop! So if you look at the chart on October 12th you will see it tested the $1.10’s and held the $1.20 and closed higher at the end of the day, we sent out an alert Oct 12th and told our subscribers to consider watching this for a higher move the next day and maybe even another run towards $2. So you can see the basic chart pattern that needs to be established before purchasing.
2. Fundamental Research: Who is this company and what do they do?
SNWT is a premier Southern California retailer in off-road motor sports.
San West, Inc. has established its niche in the off-road arena by improving upon buggy manufacturers’ designs and creating customized solutions for buggy racers and recreational riders.
They also just entered into a $3.2 million dollar agreement with an online dealer. “3.2 Million Partnership with Second Largest Online Dealer in U.S.” is the headline.
They are going to be having a split coming up and this is good for the shareholders and ATTRACTS traders to the stock.
As the volume picks up and all this news starts to hit the wires the Traders will start to pile in and the Shorts will start to panic and get squeezed. This causes them, the shorts, to buy back the stock sending it even higher.
So getting in at a price around here and waiting for the action to unfold with a tight, disciplined stop loss as to mitigate losses, you can start learning how to trade penny stocks such as this one.
Technical Analysis For A Bad Penny Stock:
1. A bad penny stock is one such as FBP, they have a continual downtrend and they continue to make new lows. This stock is ruthless in its descent and the chart looks awful. So on these chart patterns you want to watch them and make sure they confirm a bottom before even considering getting in.
2. Fundamental Research For FBP
They are a bank that has had some serious problems with debt and may not be able to pay it back. Also the Shorts are hammering this thing lower and lower. Their book value is high but they are not making any money as of right now. This company might or might not go out of business but it could be considered for a short term play.
We are here to help you trade, so please feel free to ask us questions if you want to become a successful trader.
In our course there are obviously a lot more details to enable you to find and trade these types of stock each and everyday! Please sign up for our stock alerts and purchase our program to stop the frustration and start the profit taking!
Until next time;
HAPPY TRADING!
the C² Trading Team
Visit C² Trading at http://csquaredtrading.com
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C² Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
The C-Squared STOCK ALERT Service is solely an educational information service. The information is not intended as investment advice, as an offer or solicitation of an offer to sell or buy or as an endorsement, recommendation or sponsorship of any company, security, or fund.
C Squared Trading, its founders, its licensors, content providers, employees, officers and directors (hereinafter referred to as The Company) does not warrant that the information contained in the Service is accurate or complete. The Company is not responsible and does not guarantee that the information contained herein or distributed from this site will be uninterrupted or error-free, or that defects will be corrected, or be liable for any errors or omissions that may be found in such information or for the results obtained from the use of such information. Subscribers and users of the service contained herein or distributed from this site (CSquaredTrading.com) are encouraged to consult other sources and confirm the information contained within the Service. Subscribers and users of the service understands and agrees that the Service should only be used as one of several research tools and that subscribers and users of the free service should consult with a stock broker or other investment professional prior to making any material investment decision. Both long-term trading, position trading and intraday-trading have potential rewards, as well as large potential risks. Trading may not be suitable for all users of this site or the information provided by this service. Subscribers and users of the service assume the entire cost and risk of any trading they choose to undertake. Any reproduction, re-transmission or redistribution of any information, provided by CSquaredTrading.com is strictly prohibited.
