Project Chaos

The long Treasury declined, ending back below the lower boundary of its very short term uptrend. The dollar finished back above the lower boundary of its short term trading range, negating Wednesday’s break; but that did little to improve an otherwise ugly chart. Any follow through in either direction (i.e. above the lower boundary of its very short term uptrend or below the moving averages) will likely determine its next big move. The question is, will this result in a scale back in the corporate tax cut or a revenue negative tax cut? That said, given we are talking about the VIX hitting an all-time low, there is the question of whether the last week’s decline was some kind of blow off bottom. Bottom line: yesterday’s overall pin action was pretty confusing: Dow up, S the VIX up big on a rise in the Dow; and a third day of uncertain vacillation by the TLT, UUP and GLD.

The VIX (10.1) was up 6 ¾ %, unusual for the day’s pin action. The pin action wasn’t the only thing that was a bit confusing yesterday. However that is a little bit rich for me, and for any sensible person. One of the investment asset classes that gets a fair bit of press coverage is commodities. There are a number of types of mutual funds and each type has its own particular investment objectives. There are a handful of stocks with better scores than UTX. Most traders would be better off sticking to a simple rule based trading strategy. It finished above the former lower boundaries of both the intermediate and long term trading ranges. My trading mandate included a maximum possible loss (a mere million quid if I remember correctly), as well as limits on the greeks of my position (I was trading options). For those who haven’t yet, I would sell a portion of my winners and all my losers in order to build a cash position. The first home, an off-plan new-build property in Colchester, was bought by a ‘Bitcoin miner’ who now intends to let the property out in the cryptocurrency.

First homes sold using Bitcoin Last week, a developer announced it had completed on the first two UK homes to be bought using the cryptocurrency Bitcoin. Is buying by Bitcoin a growing trend? Investing is purchasing assets for the purpose of growing wealth. As I have written before, defining risk is the most important aspect of investing. Bottom line: the economic news is not nearly as positive as the ruling class would have you believe—and Hurricane Harvey’s effect will not help, all that rebuilding elation notwithstanding. ] assuming this event will slow down any tightening move by the Fed. The June Chicago national activity index was up more than expected, but the May number was revised down. In macroeconomics, the long run is defined as over a year or more than one operating cycle. Though to be fair, he did manage to have at least one good day—looking presidential in Texas and avoiding provocative statements on North Korea.

My thought for the day: investors have a tendency to overweight information that is easy to remember. Growth option is suitable for investors looking for long-term growth while dividend option is suitable for those looking for an additional source of regular income. Adding to the deficit/debt would simply place a heavier burden (debt service) on the economy, further stifling growth. I believe that the answer is important because this country can’t afford to expand either its deficit or its debt. To look for a value stock to “turnaround”, the company needs a strong balance sheet, plenty of cash in the bank and conservative debt levels. And as I noted above, Harvey gives them the perfect excuse to continue to do nothing; but if they do start unwinding QEInfinity, I don’t believe that will be a plus for stock prices. ARMH’s eps is pretty flat over the last 10 years and, obviously, a lot of the tsunami future has been pumped into the stock price now. By last month, 88,921,000 didn’t have jobs. If you have been to the tax lien sale lately you may have noticed something interesting.