Your Daily Bit of Wall Street Wit & Wisdom

The First Bank of the United States

The First Bank of the United States, h/t National Park Service

“The stock market took a dive today. It was so bad, Goldman Sachs had to lay off three congressmen.”
— Jay Leno

Often, there’s a sad truth in humor. That’s the case here.  The market’s recent rebound has coincided with the US government shutdown, hmm…and boosted by sovereign central bank monetary stimulus.

The unfortunate cycle is politicians care about big banks thriving and big banks care about keeping politicians elected.  Whom they don’t seem to care about is you.

George Carlin spoke well on this subject.

Enjoy the long weekend!

Best regards,

Steve

King Dollar’s Crown Wobbles

Brian Dykstra portraying King John

Photo by Teresa Wood, Brian Dykstra as King John, h/t broadwayworld.com

by Steven Sarnoff

As the stock market’s decline intensifies, one wonders what central bankers will do.  Will they coordinate to take down the US dollar?  Their objective would be to boost their balance sheets and pump out enough liquidity to prop up ailing share prices.

Will Treasury Secretary Munchkin Mnuchin again call the PTT (Plunge Protection Team)? Stocks are sliding hard.  It will likely take a sizeable sovereign effort to turn the state of the market.

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A Step Ahead, Covering Our XLF Play

Grabbing Great Gains Before Financials Fall

by Steven Sarnoff

Japanese Candlestick charts are a superior way to depict market price movement, because they vividly depict and reveal the human behavior (buying and selling) that drives price direction.  They often send up early warning signs of coming turns in price.  The chart is never wrong, only the analysis.

On a day when the Financial sector took it on the chin and fell hard, our readers are glad they were able to grab their gains (+82% in a little over a month) before many market participants felt the pain.  With markets closed tomorrow, here’s a walk through how we exited a step ahead of the crowd.

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Crazy Like A Fox

crazyfox

Crazy Like A Fox, art by Terry Fan

by Steven Sarnoff

Today was the worst day of the year for stocks, but not too shabby for OPTIONS HOTLINE subscribers. The Superleverage power of my method was on display, as our recommended Citigroup May $60 put, triggered 03-20-17 at $2.00, traded 03-21-17 at $3.30, +65% in 1 day, on a 3% move in the underlying shares, with an always known and strictly limited risk!

On Sunday, 03-19-17, I emailed my readers, “Professionals have seen the recent sector underperformance and are fading the financials. Some may call that crazy, but it may just end up being crazy like a fox.”

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