SOCIAL CHAOS COMING
In the next several months, expect rising chaos to gradually strike the American fabric. The list of triggering factors grows almost with each new season. Look for problems and intense social reactions to extend from:
Rising food prices, such as bread, milk, cheese, eggs
Rising gasoline prices with scattered shortages
Lost jobs from corporate outsourcing trend resumes
Lost homes from bank foreclosure
Later on, bank run on deposits at failed banks
Later on still, freeze on stock accounts, as corporate parents go bankrupt
The ‘crack spread’ describes the difference between the crude oil price and the gasoline price. It has widened to do harm to gasoline refiners. Unless a 50-cent move comes to the gasoline price, expect wide gasoline shortages. It is simply unprofitable to produce it. The food price issue is an offshoot from the mandated movement toward ethanol. In this crazy world, almost everything is connected.
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
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Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 24 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at www.GoldenJackass.com . For personal questions about subscriptions, contact him at JimWillieCB@aol.com
Thursday, November 29, 2007
Wednesday, November 28, 2007
Watch out for the mess from credit crunch
We also suggest investors and traders eliminate certain stocks or trades if you are working with more than 20-25 stocks and five active open futures positions.
From our point of view, tightening up your holdings will cause you to focus more and sell the less attractive potentials. Some of the best traders in the world work only one market or trade. They simply focus 100% on that trade and earn more by adding more positions.
Some years ago we wrote markets could get so crazy at least one of the major exchanges would close-up for good and potentially others could see trading stopped for a few hours or even days.
The 9/11 event comes to mind but it could easily be something related to the impending credit crisis causing banks to close briefly. If you think I’m kidding remember Countrywide Bank, not Countrywide Financial (mortgage company) already had bank runs a few weeks ago in California. Northern Rock in England had bank runs for weeks and its not over yet.
Commodities have an impending six week annual correction next month, which can sell most of our favorite stuff.
We could short it but our policy is to never short a longer term bull market even though some pros can do it as they are glued to screens. Readers of Trader Tracks will receive market signals and guidance when pivot points approach. Nobody can call tops and bottoms precisely and neither can we despite having done it once or twice (pure luck). Rather, we like to find a trend and technically plan to take out slice out of the middle.
The forthcoming energy and precious metals corrections will drive out some cry babies. We have plans to deal with these normal adjustments and so should you.
Be careful out there as the markets are very demanding and at times can be ruthless.
– Traderrog
From our point of view, tightening up your holdings will cause you to focus more and sell the less attractive potentials. Some of the best traders in the world work only one market or trade. They simply focus 100% on that trade and earn more by adding more positions.
Some years ago we wrote markets could get so crazy at least one of the major exchanges would close-up for good and potentially others could see trading stopped for a few hours or even days.
The 9/11 event comes to mind but it could easily be something related to the impending credit crisis causing banks to close briefly. If you think I’m kidding remember Countrywide Bank, not Countrywide Financial (mortgage company) already had bank runs a few weeks ago in California. Northern Rock in England had bank runs for weeks and its not over yet.
Commodities have an impending six week annual correction next month, which can sell most of our favorite stuff.
We could short it but our policy is to never short a longer term bull market even though some pros can do it as they are glued to screens. Readers of Trader Tracks will receive market signals and guidance when pivot points approach. Nobody can call tops and bottoms precisely and neither can we despite having done it once or twice (pure luck). Rather, we like to find a trend and technically plan to take out slice out of the middle.
The forthcoming energy and precious metals corrections will drive out some cry babies. We have plans to deal with these normal adjustments and so should you.
Be careful out there as the markets are very demanding and at times can be ruthless.
– Traderrog
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