Mythbusters h/t The Discovery Channel
This past week, an article in Vanity Fair went viral. It claimed that some futures traders made billions of dollars using inside information about Trump’s chaotic tweets.
One paragraph in particular caught my eye:
“There is no way for another trader, let alone an outsider such as me, to know who is making these trades. But regulators know or can find out. One longtime CME trader who has been watching with disgust says he’s never seen anything quite like these trades, not at least since al-Qaida cashed in before initiating the September 11 attacks. ‘There is definite hanky-panky going on, to the world’s financial markets’ detriment,’ he says. ‘This is abysmal.'”
First, Business Insider points out there is much in the Vanity Fair article’s claim that is simply false and reveals how desperate people are for the news they want to hear.
Second, seeing a trader perpetuate the myth of terrorists profiting from the 9/11 attacks gives me pause. You see, I’m in the 9/11 Commission Report’s “Pre-September 11, 2001 Trading Review,” because so much of the options activity in American Airlines puts at that time was based on my Options Hotline recommendation from Sunday, September 9, 2001. “In every instance where we noticed unusual trading before the attack, we were able to determine, either through speaking directly with those responsible for the trading, or by reviewing trading records, that the trading was consistent with a legitimate trading strategy.”
Terrorists aren’t that smart, and Trumpians, well….it seems a mythbuster’s work is never done.
Finally, as with all news these days, think critically about what you hear.
Consider the source.
And find out for yourself.
Enjoy your weekend!
From the archives: First edition of The Stock Trader’s Almanac, with a note from my dad.
“Perhaps it’s Talmudic wisdom but, selling stocks before the eight-day span of the high holidays has avoided many declines, especially during uncertain times.”
— Jeff Hirsch, The Stock Trader’s Almanac
We shall see if last week’s sharp decline is completely retraced, or if Thursday-Friday’s strong rebound is rebuffed, heading into Yom Kippur.
The important thing to remember with such indicators is, as Richard Russell would say, “It’s the little exceptions that get you.”
Cartoon by Ellis Rosen, @Ellis Rosen
“It never rains on Rosh Hashanah.”
— Paul Sarnoff
I remember one year, walking to shul with my dad, we got soaked!
Rosh Hashanah begins Sunday evening, marking the start of Jewish year 5780. The High Holy Days, from Rosh Hashanah to Yom Kippur, are known as The Days of Awe and begin 10 days of reflection, introspection, and repentance.
We wish all who celebrate a very Happy, Healthy, and Sweet New Year!
“Action is the antidote to despair.”
— Joan Baez
My grandmother would often tell me, “Good, better, best. Never let it rest; ’til your good is better and your better, best.” Doing your best means to take action on your ideas.
Wishing you all the best,
Grizzly Bear snacking on berries, h/t Drew Rush / NatGeo
After an early bounce, tired bulls are on the back foot. Hungry bears are selling. When asked why the market moved up or down on a given day, my dad would answer in his Brooklynese, “Sometimes the bulls gotta get fed and sometimes the bears gotta get fed.”
h/t Tribune Media Services
“Pluggers are self-deprecating and have a healthy sense of humor about themselves. They represent the majority of us who don’t live for the latest trend, who keep plugging along without fanfare and try to balance work, play and family life.”
— Gary Brookins
Throwback Thursday to this date in 2005 when I made the funny papers (see cartoon above).
Having a good sense of humor and the persistence to keep plugging along through the ups and downs of life are valuable qualities which help you on your way.
Have fun, plug away, and enjoy a great day!
“Don’t anchor your self-worth to your net worth. Almost everything that is important in life can’t be measured in dollars.”
— Ian Cassel
…or pesos. We’re back, recharged after a wonderful week with my in-laws down on the Baja.
Simple care and lovingkindness for your family, friends, other people, animals, and the planet, that’s the good stuff. You see, that’s what endures.
Go get ’em, folks!
Super Bloom, Anza-Borrego Desert State Park, h/t Sumiko Scott / Getty Images
“No winter lasts forever; no spring skips its turn.”
— Hal Borland
So it is, as well, with markets. Cycles come in, sometimes stronger than others.
Welcome Home, Spring!
This year, we’ve got a Super Bloom of wildflowers in Southern California. I love seeing the desert in bloom. For a guy who grew up on Long Island, the desert seems like a place out of the movies. Seeing such vibrant colors spring forth from the stark terrain gives us hope.
Russell Sage, circa 1870 h/t Hulton Archive/Getty Images
“He wears no crown upon his royal head,
But many millions in his purse, instead;
He keeps no halls of state; but holds his court
in dingy rooms where thrift and greed resort;
In iron chests his wondrous wealth he hoards;
Banks are his parlors; brokers his lords,
Bonds, bills, and mortgages, his favorite books,
Gold is his food, and coiners are his cooks; …”
— John G. Saxe, The Money-King, 1854
Saxe’s lengthy mid-nineteenth century poem is descriptive of the exalted financial state of the European banking families considered to be “Money-Kings.”
In 2019, many of the poem’s couplets ring familiar with today’s growing problem of income inequality.
It’s something to consider, when considering those running for office.
PS My father, Paul Sarnoff, authored a biography of Russell Sage, published in 1965, Russell Sage: The Money King. Sage banked the tycoons and helped shape the Industrial Revolution. He became one of the wealthiest people in US history.
Firecracker, h/t farmanimalrefuge.org
There’s an old Wall Street adage, “Bulls make money, bears make money, pigs get slaughtered,” warning investors against excessive greed.
Thinking of pigs reminds us to be kind and compassionate human beings. We vote with our dollars. Let’s strive to be socially responsible and conscious consumers, as well as thoughtful investors and speculators.
At the cusp of the Lunar New Year, the Chinese Zodiac’s Year of the Pig, with gratitude galore, we’re sending a shout out to Jordan, Matt, and all the great volunteers at Farm Animal Refuge.
It’s a wonderful place, located in Campo, California, less than an hour’s drive east of San Diego, where people can be educated and inspired by seeing fortunate animals, like Firecracker above, simply living their lives .
Farm Animal Refuge provides a true home to abused, neglected, unwanted animals. Click here for a 2-minute video report, nicely done by the Union-Tribune.
Check out the Farm Animal Refuge nonprofit and please consider donating to them.