Thursday, April 30, 2009

Three fun stox. Maybe. Oh yes two of my fav shorts TOO !

I noticed some whining about Nat Gas and Uranium on the move today. What has worked for me for this previous week, has been DEJ, & CXZ. Of course does it count that I have watched DEJ for a year, and CXZ for 2 yrs? Yes they look trashed dont they ? They ought to ! ! They are Juniors that have been thrashed Right,Left & Center by the lack of financing, etc, etc, ad nauseum. What they got is honest mgmt, IMO, some assets, and a technical launch pad, and a fairly developed base. THEY ARE JUNIORS, not majors, please take note, they will subject to all the BS Juniors have to deal with. Your call, DYODD. If you have read your copy of "TA for Dummies" so much the better. If not, well it could be a place to start. Later we will have a chatroom and a forum to do these discussions. Right now I do have a TA forum on Investor Village, if you want an invite, let me know.

Now dont you hate that sugar is in everything you buy? Well OK, besides ROGERS SUGAR INCOME TRUST [ RSGUF - OTC-Usa, or RSI/, on TSX ], what else could you do?
So far I am in the starting gate with this one, but will share it. CZZ is Cosan Ltd, a Brazilian sugar producer. No dividend makes it different than ROGERS SUGAR, but it has some real sugar production, in an economy where sugar is a driver. Further for the American readers, RSGUF is obviously a hedged against US currency, being a Canadian stock. Well, CZZ might fufill that role for the Brazilian REAL, if anyone wishes to hedge their US stock position with a Brazilian stock. AGAIN, your comfort level, your DD, define whether you play this.

OH am I nuts? I mean I am calling a correction, right??
RIGHT, Right & right ! ! ! I am hedged. My general market hedge is being short XLI, the Industrial SPYDR, and for an individual stock showing marked potential for weakness, I like INTEL [ INTC ]. INTEL is a very scary stock as it is contained in so many indexes, but was giving me "wounded minnow" vibes on my scans and filters, so I have selected it along with the above issues for the Educational Investment Simulation I am running. If you decide to "GO LIVE", make sure you do your DD and have money to risk.

Right now I am watching the slaughter of innocents as the mullet are drawn into the net. This is a great time for the Market Makers to unload lots and lots of stock on the public, so they are cashed up for the bottom. C'est la vie.

Stay vigilant, keep your powder dry, post your stop orders, and harvest cash for your next buy program.


Wednesday, April 29, 2009

A funny thing happened to me on the way to the Forum

As I scanned, filtered and reviewed my stock universe, and funny as it might seem,

after this wonderful rally, I could not find a single long stock to buy in anticipation of a good bull move. Hmm, is that a bit strange, considering that this rally makes it seem that "Happy Times are Here Again".

Funny how the Histogram BARS are declining, while Black & Red Lines are yet towering above the Histogram BARS. That is a clear divergence.

Look back to the March 9th Bottom to see the behavior of the Histogram BARS vs. the Black & Red Lines. The BARS Bottomed out, and the Black & Red Lines turned upward just as the bottom occurred. Actually the Black line is the 12 day Ma, and the Red Line is the 26 day Ma in a typical default value 12,26,9 MACD value set up.
In the last, the 12 DMA turned UP as the decline bottomed. Observing that information, you ask yourself, what picture is the 12 DMA trying to paint.

I add that to the fact I cant find a stock to buy, and say, exercise caution here.
Lotsa nice Bear ETF's out there. Just go to Yahoo Finance, look up ETF's under the investing Tab, and then select BEAR ETF's to find something you like. If you havent done this, its a good excercise.

Meanwhile keep your guard up and your powder dry.


let the picture speak for itself

Well, if you look at the curve, you get the idea........there are some more hints in this chart, but the message is plain.


Monday, April 27, 2009

"FLYING PIG FLUE" (copyright 2009 dgs)

What does it mean to you?

Well seems its another "EXCUSE" for the CORRECTION to proceed. Weigh the BASIC Trend
against Transient events, vs. "Media Events", and see what you think.


Thursday, April 23, 2009

So if ARE there, what shall we do?

OK, I am guilty of not being clear. Reducing the entire universe of babel, text & video to a couple of sentences, and creating actionable instructions, and profitable situations leaves me with a pretty closed mindset. This leaves my mindset filled with jargon, criteria, and technical definitions.

Being clear is sharing so that others may find their way. That is my purpose here.
Part of what I do, hopefully clearing away irrelevant material so we can then view the issues, framed in relevant manner,and with suitable tools. I specifically use tools you may access over the Internet without charge.

First and foremost, is They are the primary vehicle of my work.

Most of what I produce can be reproduced with their Free charts. For example:
As above we have a chart of CLAUDE RESOURCES, a Canadian Miner, having been slaughtered with all of the other Juniors, but alive and still kicking.
Free Charts may contain up to 3 OVERLAYS [ here, Keltner Bands, 200 DMA & 50 DMA
[and if truth be told, the mid-band line inside the Keltner Bands is a 20DMA]].
Three [ 3 ] INDICATORS are also allowed: in this case, Chaiken Oscillator, MACD, and
Ultimate Oscillator.

The OVERLAYS serve to tell us WHERE in the Relative Position the stock is riding.
The INDICATORS tell us which direction & momentum we expect the price trend to go.

From this we can begin to observe things that help us. More later.


Wednesday, April 22, 2009


GOOD QUESTION I guess if we had a GPS, it'd be a bit easier.

FIRST, we could see where we are. If our elevation were 8900 ft above mean sea level, and the highest peaks in this area were 9000 ft, well we'd know we had no place to go but down. If the GPS could hit four "birds" it could tell us our rough elevation.

So where are we? The previous chart says we are at a TOP. Nothing I see reverses that, after all TOPS are made of Relatively good feelings. So the news is lousy as it has ever been, and things arent so great, but no one is feeling down or threatened yet.

Basically if you look at where the market has gone since the first of the month, one word does it. NOWHERE ! 7800 to 8200 back to 7800, that spells DISTRIBUTION.

Two words summarize it - Direction = nowhere ; Condition = Distribution.
Not good words for LONGS. Same rules apply. Protective Stops IN PLACE.
Potential Buy Stops in place for the few stocks you want.

Right now, selected energy and selected PM's, yes thats what I am looking at now.

The question is really what your doing to protect yourself. Basically, inertia, rather than alarm is ruling and complacent behavior is ruling the moment, as if we are out of the woods, which we are NOT. As you know, the market will fluctuate. This will be one of those fluctuations. Make sure you dont get caught in the gears.


Monday, April 20, 2009

"A good plan executed today is better than a perfect plan executed at some indefinite point in the future." -Gen. George S. Patton, Jr.

So whats in your wallet? Did you have your protective stops set? Do you have your buying thresholds ready to be put into place?

I think the proverb is that "Circumstances favor the prepared", which I probably would say always applies.

How deep will this correction go? You might check NAMO and watch its behaviours for the instant situation and how it behaves over time.


Friday, April 17, 2009

Correction HO ?


So the question becomes? Is the data depicted on the chart, showing us a TOP Area or a Bottom Area? Hint -> The area in gold, occupies the TOP of the chart area now.

Can we experience something that will save the market from a sharp drop? Yes, we can have a flat correction. Looking at the data, I'd say we are in an extended top, rather than a flat correction. The drop beginning January, took TWO [ 2 ] full calendar months to run its course. The rally before that took 1 Month bottom to top.
This last rally took, so far 6 weeks, so nothing is out of balance here, yet.

Therefore, IMO, a correction, decline or consolidation could take 1-2 mo's whether this is a bull or bear market. Lets look at how the Media is talking up this rally, and yet again, priming the public to EXPECT that the market could rally next week, on the back of this last advance. I'd have to refer back to the above chart. Could the market rally next week ? Could it go somewhere? Yes. Could it go to 10.5K from here? Not likely, IMO, before a correction / consolidation.

What did I do this week? Sold merger candidates, and other stocks that ran on news.

What sectors did I buy this week? Natural Gas, Coal & Uranium. Sectors I sold: Energy and Precious Metals.

Whats in your wallet?

Good Luck All,


Funny tho

even tho I dont have high hopes for serious gold movements and many many PM stocks are showing negatively, some good ones, IMO, keep showing up on my nightly scans.

Dont take this to mean I like NXG, cause I really have no love for this guy, even tho I first met it in 1967, and made money, probably my first bux I made on a PM stock.

Anyway, in no particular order, in the past 24 hours, I had the following PM stocks show up on my scans: GRS, SVM, AZK, NXG.

Now to make it more confusing, these two consumer stocks are showing up and have been for some time : BC, MFG. Boat stocks. Go figure.

As I have told others, I have no love lost btwixt myself and the financials and anyone that wants can play with them. The two that have shown up most frequently and consistently on my scans for the last two months are: MF & OCN. Do as you will, you have been warned.


OK so the streets ARE NOT paved with gold,

yes you and I know that ! ! But we have Silvercorp and Gammon Gold. Certainly GRS has struggled. SVM also. Yet my VIRAL shows gold struggling long into the summer.

It has been an open question for at least two years which juniors would survive, which had a shot at becoming something, and which would go belly up or be taken over.

Logic would dictate these guys are here to play, maybe not stay, but to play.
Time after time they show up scan-wise, after their Big run's of yesteryear. The question is "What have they done for you lately?" Were you of a mind to accumulate monthly or use a geometric pricing system like Robert Lichellio's, I'd then say, if I did it, these two would be on my plate.

To quote a cliched commercial, "Whats in your wallet?"

To change subject slightly to: "THE CORRECTION". Has anyone forgotten that this BEAR MARKET is guilty until it acquits itself?

I cant attribute that "It is running out of steam.", referring to The RALLY. I can say that rotation is occurring and the clock is running on this rally, and thus the CORRECTION becomes more incumbent each passing day. I can also say that fewer and fewer issues are taking part in the upticks, as well as fewer bullish formations being created. Bottom LINE: Keep your stops in place, and your SCALE BUYS,in place also. Go fishing, go knit a pair of gloves or dig in the garden. do NOT obsess about this market! ! ! This market will do what it needs to do, and you will have positioned yourself.

Good Luck


Wednesday, April 15, 2009

Lets talk CALENDAR and CLOCK

Many have noted that the CALENDAR and CLOCK seem to mark turning points and moves.

I have said privately that I thought the re-imposition of the up-tick rule would bring a greater semblance of normality to markets. OK thats a done deal.

No one likes INCOME TAX TIME. I tend to mark markets by that also. THEREFORE : KEEP YOUR STOPS IN PLACE.

We have had about a 25% upward RANGE SHIFT, so it may mean this will be a flat correction. "MAY MEAN", nothing else. Find your "SCALE-IN" Points, set your STOP LOSS orders and maybe your STOP LIMIT BUYS, and go fishing, go for a walk, and watch the water. Maybe Trailing SELL Limit orders, if your comfortable with them.

Let the Taxman and MZ Market help you out here.



But perhaps let MZ. or MR. Market help us out. Truly if it's a bull market we shall buy back in again.

BUT maybe for prudence sake we all need our SELL STOP LIMIT ORDERS all in place LOCKED & LOADED so we can go about our business and let the market do what it does best, FLUCTUATE !.

AS I work on my various projects, my attention is spread out amongst them, so I have my STOPS IN PLACE, and can focus, instead of suffering endless anxiety. Thats what works for me.

My finding is that MZ. or MR. Market knows exactly when I should get out. Just like me MZ. / MR. Market has been wrong from time to time, but I have been wronger than MZ. / MR. Market has, so this is why I am comfortable.

Meanwhile ya'll have fun and fight nice. I am looking at shorts here, and the screened but unfiltered short list is: UVV; TWX ; ACN ; BAX ; GPN ; FO; HBC; BEN; MW; BR; JCG; WRI. That should be some food for thought for ya ! !


Monday, April 13, 2009


Is anyone freaked out by this rally? Is everyone feeling good about this rally ?

Do you have your stops in place? Well yes if you have stops in place, you could be stopped out, right? But if its a bull market you might miss a bit of, would you not be able to buy back in?

Of course, if a SCARENARIO hits, what would happen if you had stops in place??

Well, hey, ITS YOUR MONEY ! !


TANZANIA -> Douglas Lake -> on my mind

Now I told Toby [ Tobinator ], after reading his research report on DLKM, that I'd write a short piece for him on about their placer mining in Africa, as to the things I knew about them and the content of his report that rang true in similarities to placer mining in Alaska.

From as little as I can tell from his report, IMO, the similarities of occurrance and nature, make their operation understandable. Black sand [ magnitite ] is common in areas of gold bear placers in Alaska, and considered "part of the landscape", as it is found with placer gold. The potential for another "GOLDEN BEACHES OF NOME" deposit exists, and IMO, DLKM may have found something like that.

What I read in Toby's report leads me to think that, the Douglas Lake deposits are as basic as placers as occur,and nothing seems false to me about.

Even the Internet rumors trying to HURT them seem to fit. DDYOD, DDYOHW, but I think he is on to something. More later,

Good Luck All,


Barrons Attack on Tanzanian Royalties [ TRE ]

Seems to me, pretty funny when a really BIG outfit like BARRONS attacks Jim Sinclair, by trying to paint one of his vehicles Tanzanian Royalty [ TRE ], as

Pretty pathetic, if you ask me -> BUT even more interesting IMO, is the fact that
JSMINESET published a recent article about the rationale for gold shorts not covering.

This entry is pretty much commenting on a comment, so now let me quote a quote AGAIN, altho its a paraphrase, so I dont have to page back to get it : "the point of these shorts was to make sure the juniors could not get any financing:. Now that paraphrase appears in an earlier post in this blog, and it comes from JSMINESET.

Now TRE is a legitimate junior with JV in Tanzania, with Barricks, oh dear, but its a junior miner with typical junior pro's and cons. I think when Barron's attacks it in this way, does a great job to reverse target what is really going on here, IMO.

I recently expressed a negative opinion privately and publically about a Miner listed on the LONDON, whom I thought was the "Partner from HELL". This Barron's article simply shows me how connected all these guys are. Did the "Partner from HELL" think this up all on their own, I mean what they did to two of the other Junior Miners they JV'd with. I DONT THINK SO ! ! ! But if you check who did some of their underwritings and was probably their financial advisor, you'll get the picture, I wont have to draw one for you.

CHEERS for Jim Sinclair and Tanzania Royals, jeers to Barrons. Shame on Barrons for trying to skirt the meanings of the English Language. I thought I knew where BARRONS was at. Now I KNOW I know where they are.

Good Luck All


Sunday, April 12, 2009

Armstrong Date

VLB left a comment that the ARMSTRONG DATE most recently published was Apr 19 for a turn, whereas both my Breadth and price indicators [ $VLE & $WLSH ] gave Fibonacci Date Highs for April 20, so I know I gotta do a better job of calendaring dates.

Anyone care to share where they last saw an ARMSTRONG Forecast Date ?

I expect the OVERBOUGHT condition to linger on this week,and finally fall out of orbit as this week wears on. That said, dont forget to set either your TRAIL STOPS or your LIMIT SELL orders where you want them. I really dont see where exactly this market will come to rest yet, but I'd say look at previous lows, and then also prepare yourself by looking for Range & Momentum shifts in the data your most familar with.
My breadth data says from Jan forward the breadth plateau has shifted upwards on a bottom basis perhaps 10-20%. Given that price and breadth roll differently it does not YET translate into the next bottom being 10-20% higher than the last one, but does not prohibit it either. Follow the MACD on the measures you use most frequently to get a picture of the trend. If the Weekly MACD doesnt show it, drop back to Daily MACD. If that doesnt work, look to the Hourly for hints, and should that fail, try using the TRIX, usually the daily. Hints and clues abound but you have to both look for them and interpret them.

Good Luck All


Saturday, April 11, 2009

Correction, ongoing?

Sometimes things like this correction seem very puzzling.

The correction is ongoing, in time, and space but not yet in price. To put some perspective on this, recently I did a Fibonacci time series on some of my favorite indexes and I came up with HIGHS for April 20. So it seems to me, that the price segment of this Correction, might well manifest itself about that time. For certain, the Advances & Declines show no real sign of abatement of upside movement, nor do the price indexes. Does this mean, NO CORRECTION ?? No, Virginia, IMO, it means that the market will do whatever is necessary to fool the greatest number of participants.

A brief look at the VIRAL V1.3 $BKX projects a decline for the bank index after this April 20 top, so I will stick with the thesis that a decline is in store for the main indexes after Apr 20.

Probably a rally lasting to April 20 will fool quite a lot of people and the Talking Heads will help the MM's complete the distribution by opining that perhaps its now safe to invest. Oh well.

In a very real sense, I think we have seen a sea change and a range change since late 2008. Cant call it a bull market, but I can say, this market will no doubt clean your clock if your on the wrong side of the trend, and its inherent volatility.

A number of guru's are calling for a disaster decline and bottom in the fall, but I just cant see that far, so I will stick with my short term/ intermediate term scenario 2-4 mo out. As far as I am concerned,the Nightmare SCARENARIO, is always possible when investors are either complacent or overconfident, so be aware.

Happy Holiday.


First things First - Happy Holidays Everyone

Please take a moment this weekend to reflect on the blessings bestowed on us those closest to us, as we celebrate in our freedoms, under rule of law.

Happy Holidays .

For those of you who read Jim Sinclair, know that I occasionally write on "The Wall" in the Facebook group.
Jim's most recent comment, "A short sells rationale for not covering", discussed
the complete devastation of the junior gold miners, specifically those in exploration and development. An unattributed quote appears as thus :"To prevent the field from obtaining financing.". Reading this, you have to admit this is the NEUTRON-BOMB NUCLEAR OPTION, which leaves the properties in question re-possessed by the lender. NEAT ! Except that it leaves the rest of us dead ! Not that we are not already the Walking Wounded, which in large measure, from all those I communcate with, we really are ! ! !

Certainly that puts the IAG-Orezone Merger in a good light, as these lads both have exciting properties,and are probably now stronger for the merger. Certainly it did NOT stop IAG from going to more equity financing, which is the preferable route to borrowing from predatory lenders, whom we shall for lack of a better term call: "THEY". THEY understand the gold market, understand that gold is money, and that he who has the gold makes the rules. THEY have dealt money and gold for centuries and have THEIR "drill" perfected. THEY tried to cut off all options to NEW gold properties.

The DIRTY-WAR in the PM sector continues, as THEY, having deep pockets, are a respository of the money that was supposed to have been DESTROYED. Its in their deep pockets and they have it to LEND, if THEY can get the right terms. If I remember right El Dorado Gold [ EGO ] postponed an equity offering last month due to bad market conditions for them. Now that their equity price is soaring, might they have obtained reasonable financing or simply wait their turn for equity placement.
Mind you they are the lowest cost producer in some table of compilations, coming in at $286 per oz produced, so they might be quite desirable but yet no longer a vulnerable junior explorer.

In my comments about Jim's article "CONNECT THE GOLDEN DOTS", I outlined the actor behind the curtain. In his last article Jim outlined the rationale and M.O. of the THEIR agents. Compiling that data, the next consolidations we see amongst smaller members of the gold mining community, will probably be those "Marriages of Convience" or "Arranged Marriages" that hold hope for everyone but THEM. THEY would like to see more SHOTGUN MARRIAGES of failed loans and such, but as bad as things are, THEY are so naked and transparent in their motives, M.O. and activities, THEY might have a bit of difficulty getting blood from their proposed victims.

A clear case in point, is the "Partner From HELL", that both Mineras Andes and GORO share, who has shown their fangs in the case of GORO by calling a loan at the worst possible time. Not that the loan caller in the GORO case was the ACTUAL actor, but rather that their financial advisor is, IMO, part of this larger insidious network THEY have. If you have a question as to their identity, or care to protect your investments from their plunder and pillage, please feel free to email me and I will outline the sequence of events and issues that IMO, spotlights THEM.


Thursday, April 9, 2009

Yes this is a correction but not what you expected.

Ethically I cannot say to go into financials. Most of what is POPPING UP is the garbage no one thought would survive and might not yet. ENERGY seems the dominant theme in the SNIFFER SCANS and is producing most of the PUP's [ POP-UP-PIX ]. I am not at all concerned about being long energy producers, as there are assets to back them. Cant say that about financials. Certainly the biggest winner in the PUP category has been WTI, up a buck today. Its got a pattern reminiscent of MWE of about a month or six weeks ago. WTI is a weird company by today's standards, too conservative some might say. Apparently that weirdness is appealing to some. DYODD, & DYOHW.

GURU's are calling gold as poised for a run. I am not. As much as I'd like it to run, I am out of all straight gold issues. MVG with its merger struggle with FRESNILLO is way way interesting, so I will stay with it. Should I decide to write an SEEKING ALPHA article, it probably wont be on gold.

Meanwhile everyone have a safe week end and count your blessings.


Tuesday, April 7, 2009

Time for the PUP's [ Pop Up Picks]

Talbots is operated as a subsidiary, so it may be subject to full acquisition by the parent company.
Acquisition ZONE $3.00 - $ 3.25

W & T Offshore a Gulf of Mexico Energy producer. They have $4.68 in cash per share.
Acquisiton Zone is $6.25 - $ 6.50 [ Symbol WTI ]. Since blogger not going to allow me to post the chart of WTI, you might find it here:

Please feel free to use these two PUP's in your educational investment simulation.


In working scanning stocks, and filtering the results, different results are obtained by tweaking the criteria. In this case I have been working with these two scans since Mar 23, and sent them out to Associates on 2 Apr. Since we are in a CORRECTION of a Bear Market Rally we are going down, within a rising counter-trend to a Bear Market. Is that confusing enuf yet?

Anyway, here are two of the PUP's from the Sniffer Scans. In the current series of "Sniffer" Scans, Energy's are over-represented in the current scans. Stocks in these scans tend to have significant daily price movement within 72 hours of detection. In this case, with a correction underway, there may be significant delay in some of the price movement. Good Luck and have fun.


Monday, April 6, 2009

YOU bet the correction is kicking in

Tomorrow I will post some "SNIFFER SCANS" issues that I use to filter out issues used to make the "BASE CAMP LIST"> The Base Camp List is the "jumping-off" point for a number of issues that pop-up, beginning a Summit Run.

As Bearish MACD crossovers and Bearish Candles overwhelm their Bullish Counter Parts.

While the 24 hour commodity charts [ 60 min ] have Gold in a ST rally from the 870's, you must ask yourself how far it can run, $910 maybe?

Bottom line, money is flowing AWAY from equities now. That results in the tide going down or a correction...... to the Rally. Now it becomes possible that TESTS of previous levels may begin.

Good Luck,





POST ME A COMMENT PLEASE, the comment line is at the end of the page.

NO NMR Members or JPM / CABAL participants comment please. THANK YOU FOR YOUR manners.
I mean, after all you have all the money, leave the INTERNET FOR US !


Sunday, April 5, 2009


OK, so if the markets are dying on the vine, WHERE IS THE MONEY.


The money is in deep pockets. HOW DID IT GET THERE? Remember all the buyouts, where the fancy DEBT SECURITIES were CREATED and sold to institutions, public and private??

GEE did the buyouts BUY all that STOCK at MARKET HIGHS ?? WHO DID THEY BUY IT
FROM? Where did they get the money from? FOLLOW THE MONEY ->

A/ The money was obtained by selling debt securities, like the ones failing
today, worth less than 20 cents on the dollar. The money came from
institutions public and private.

B/ The money WENT to the buy the stock for the BUYOUTS, into the
deep pockets at THE TOP OF THE MARKET.

C/ THE MONEY STILL EXISTS, in those DEEP POCKETS, it was not destroyed!

Check any and all of the buyout deals. They werent done for cash. The buyers had GS & JPM, imo, create and sell huge amounts of debt securities the world over.

Trust me, the sellers did not go out and burn this money in a bonfire.

THAT money was REMOVED from the economy and only a juggling act kept the indexes and their stocks up to smoke-screen the real damage. This could no longer be sustained, hence this drop since Sept.

Now you will see that money slither out of its dens, like vipers to swallow all the remaining viable companies eqiuty at the bottom of the market, IMO.

To me, these players are much more dangerous than pit vipers and a lot smarter, which is why the rest of us will be working for them, via involuntary servitude as US Taxpayers.


Thats where the money went. When they participated in the SOCIAL CONTRACT
they were JUST KIDDING, and had every intention of reclaiming every cent, IMO.

For your ECON 101 Lesson, FOLLOW THE MONEY,its NOT LOST, its NOT Destroyed. It might be beyond our reach now, but it still exists. Its velocity has slowed to zero, resting in those DEEP POCKETS >but its still there.


Saturday, April 4, 2009

Why the RANT, explanation

Under immense pressure from all sides EXCEPT Investors, the Financial Accounting Standards Board, caved to demands that they sanction institutions to 'Mark to Model', commonly known amongst investors as "Mark to MYTH".

Accounting Standards, the most commonly used grouping "GAAP" 'Generally Accepted Accounting Practices', allow you to have confidence that when you read a financial statement,
that commonly accepted meanings and valuations are ALL that used in creating them.

One such CONVENTION, in valuing INVENTORY, is valuing at at LOWER Or Cost or Marketable Value. So if GM has 1 million Chevy Crankshafts in inventory that cost $10 bux each to make, and they COULD sell them to Toyota for 20 bux ea, they could show 10 MIL in crankshaft assets. If the only market was say 5 bux per, then GM would have to value that Crankshaft Inventory @ 5 MIL. THATS NORMAL BEFORE F.A.S.B. 157 was modified here.

So now if your bank has some DEBT SECURITIES that cost it 10 MIL, but only have a market for 2 MIL, they can now show them at the value assigned them by say, a mathematical model, which may well value them at 10 MIL, when the Market Value is 2 MIL.

I guess you see the problem. We are now back to the days of the Robber Barons, where we'd have to "Buy Cows by Candlelight", not a good thing, as far as debt securities are concerned ! !

Meanwhile GM is stuck with its crankshaft inventory and has value them at LOWER of Cost or Market, whereas, JPM, GS, Your Bank, can value its debt securities by "MARKING TO MYTH"!

Yes, Virginia, THIS IS A PROBLEM ! ! !

So What Can You DO? You ask your BANK or WHOMEVER you like:


what they actually have, and what the actual BIDS are for those items.

And if you get the snotty, smarmy or even polite answer: " We dont do that.", you simply thank them and remove your funds from said depository, or sell any stock you have in said institution or both, and move them to someplace less arrogant and high-handed with YOUR MONEY.


If you are any less rigorous than this in pursuit of your capital preservation, it is probable that you will end up vampirized, IMO.

Maybe next time I will discuss where all this money is that represents the "LOST VALUE"
everyone refers to. HINT - this money and value exists, it was NOT destroyed, but that is another story.


Next RANT installment, and THE ANSWER

has been running around in my head, kinda like the "earworm" when a song get stuck in your head.

Its almost in finished form in my mind, and I hope I can post it before the markets open next week.

Meanwhile, enjoy your weekend and your blessings.


Thursday, April 2, 2009

Yes the Mountain is a sight to behold

which is reason my anger abides.

Today the market rallies upon receipt of the news that FASB 157 is now going to be amended to allow organizations holding toxic derivative financial instruments," to mark to myth", or to a model of who knows what construction, so that they dont have to ACTUALLY reveal their insolvent nature. The market did not rally due to a dynamic change in supply and demand for products, if it rallied due to the FASB 157 change, it rallied because a further fraud could be put over on those who will eventually pay for it all [ US TAXPAYERS], not only with their funds but also with their freedoms.

My dispassionate anger targets the largest pools of wealth, with whom, after WWII, there was a
"SOCIAL CONTRACT" whereas wealth circulated freely, and lifted many from poverty. Determined to reclaim [IMO] all the concessions granted and gains made by the middle class and below, they have succeeded in hi-jacking and de-railing a good economic system so they could climb to the top again, and gain obscene wealth by impoverishing billions, and causing untold death and misery to hundreds of millions.

Neutralized by fear, greed, pride, envy, avarice, fatigue, ignornace and any number of issues so handily grasped by these and their Neo-Con minions, much of the checks and balances in our Constitution are now ineffective. Thats part of my distress, in this beautiful land which we are so priveleged to occupy.

Weekly I associate with a very talented music professional who wrote both words and music for a number called " Are You Ready ?', whose words I present here with a few modifications of my own [ by permission of course]. This song always moves me when I think of the damage caused by JPM & GS, IMO, to the world.

>>> Are you ready to stand for what is right??<<<
>>Are you ready to see your neighbors plight?<<<<<<
>We are given the gift of knowing what is right.<<<<
>>>>Are you ready to stand and take your place ?"<<<
>>>Many in our world cannot live the way we do.<<<
>>>Many in our world live in fear.<<<<<<<
>>>They may be hungry, cold or homeless or have no family.<<<<
>>>> Will you stand and be their voice?<<<<<<<<
>>>>> Are you ready to stand for what is right??<<<<

Yeah surpised ya heh? WHEN YOUR READY TO STAND FOR WHAT IS RIGHT, you'll know what to do..........until then, those who do nothing will simply be fodder for the machine.

Till then, stay vigilant, keep some dry powder and know when to lift your shorts.