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Going Nowhere, and Fast!

The image above should tell the whole story. We’ve been going sideways for the past two months. Surprisingly it has made for some decent trading, but just wait until we begin trending again. Things will really start to pickup in the options markets because the moves in the individual underlying will trend more. In these conditions of sideways and high volatility it’s important to stick to your rules and WAIT for your setups and remain patient. As always, think risk…

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Options Watchlist for September 28, 2011

It’s been a while since I put out an options watch list, but lately we have seen some great moves and option spreads are relatively tight compared to volatility. Here are the stocks we’re watching for tomorrow. Longs: FAZ, RGLD, TZA, VIX, Shorts: ACI, CTRP, DOW, DVN, EOG, FSLR, FWLT, GD, GES, GS, HIG, JPM, MET, MMM, MS, MUR, OPEN, PBR, PXP, SU, TS, UPL, VECO You’ll notice the long plays are inverse ETFs. That’s right ALL of these stocks…

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The U.S. is in Risk of a Systematic Collapse

Both the S&P500 and the EUR/USD are setting up for extremely large moves which should begin to unfold into the end of 2011. Two Scenarios for the Economy With an election year in 2012, one scenario is that the US markets skyrocket to new highs and the EUR/USD breaks down and retraces back to its lows. This would imply a strong dollar and strong US market. The second scenario is that the S&P500 sells off down to 2009 lows and…

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The U.S. to Adopt a Fair Tax

The basic problem in the world today is that America is consuming more than it is saving. You need to do everything you can to encourage saving and investment: Eliminate taxation of savings, the capital gains tax, and dual taxation of dividends; bring back the more attractive incentives for IRAs, and 401(k)s. At the same time, you need to do everything you can to discourage consumption. Change our tax structure to utilize a value add tax, which taxes consumption rather…

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