Tuesday, March 13, 2012

Market Notes 3-13-2012

About 70 degrees here today, just unreal. Winter has about run out of time. I am not sad to see it go. My eye is good to go, no lasting issues.

Big Banks are a "Dirty Business"
I don't want to spend much time on this topic.

Big banks are disgusting, and their collusion and partnership with the FED is stomach churning. The "Stress Test" results being first leaked then released ahead of schedule is just another blatant abuse of the financial system. Banks and the Fed, in the words of Don Vito Corleone, are a "Dirty Business":
With thousands of stocks out there I have no idea why the rush to buy in and support such crap. Returns, money, a trade bla bla bla boring. No need, none at all.

Market Notes
Today looked and felt for a while like a sort of panic buying blow off top sort of thing. Only time will tell, but I remain open minded. Some stocks I have been in or opened Monday have moved out of nice bases that were very compressed, not just some random run up out of no where. ChessNwine has an excellent study on this in today's market recap:
Stock Market Recap 3/13/2012

Here are my open positions and notes. Click any chart for larger view.

BANR (from 2/1/2012)

WRI (from 3/1/2012)

On Sunday I discussed my new focus on longer term swings based on weekly charts and I opened up 3 new positions yesterday. All trades posted in the iBC 12631 Pelican Room as soon as I am able.

PETD

CTXS

WLK
Clearly all of these names do not sport vertical charts with no tether to reality. Solid basing, volume in weight, and then price movement. As long as I can find individual setups like these I am not all that interested in the indices overall.

Have a good night.

5 comments:

Casey L. Conley said...

70degrees! Holy crackers! I'm jealous. Can't wait for that weather!

EconomicDisconnect said...

Next 10 days about the same woo hoo!

GawainsGhost said...

Yes, banking is a dirty business. I ought to know. My grandfather was a bank manager. My father installed the computer network that all the banks down here run their monthly statements on. In fact, that used to be my after-school job, driving to banks, picking up their statements, and delivering them to the computer company for processing. And I'm on a first name basis with several bank owners.

Here's how it works, and few know this. A bank makes a loan, say for $100,000 on a 30-year note. At 5%, the total amount of interest paid upon full amortization is $97,000. The banker takes that amount, $197,000, and counts it as income earned this year, and pays himself a bonus based on that amount. Then he bundles up the loan in a security and sells it, for a nice fee, 2%. So if/when the borrower defaults, it's not the banker's problem. He's got his bonus and his fee. The investor who bought the security is left holding the bag.

Hey, nice work if you can get it. I mean, it does pay well. But it sucks for the rest of us.

We need serious financial reform in this country. I'm not opposed to anyone making money, absent fraud in the inducement. But the system, as it now exists, is wholly corrupt. Not that anyone is going to do anything about that. The bankers bought off the politicians a long time ago.

Thus, banking remains a criminal enterprise.

Budd said...

dirty business might just be an understatement.

EconomicDisconnect said...

Gawains, sadly the time for reform has passed and everyone is so happy things are better they dont care anymore. Sucks and sad.

Budd, you know it.