Contributing Editors' Blog Entries

Reggie Middleton's picture

Every now and then, you come across a company and wonder, "How the hell are they still in business?" I announced what I believed to be a ponzi scheme, (see Flim, Flam, Scam: Would a PPD Ponzi and Pyramid scheme cause your wealth to Scram?, A Demonstration of How PPD Management is Destroying the Company and Reggie Middleton's Continued Public Service Announcement on the Flim Flam Scam). Since then, the company has announced that it is being investigated by the FTC and the SEC.

madhedgefundtrader's picture

How does an NFL linebacker develop computer algorithms that give a crucial edge in the market? “Large pipes” are your trading edge, and “clouds” do the heavy lifting. Like the NFL, you can’t defend against speed. Jon’s system catches big hedge funds, pension funds, and mutual funds shifting large positions. If China is serious about throttling back its economy, it will have a dampening effect on global markets. Volatility is going to die. An exclusive Hedge Fund Radio interview with OptionMonster’s Jon Najarian.

Leo Kolivakis's picture

The First Domino?

"The situation has the makings of an Aeschylean tragedy. If help isn't forthcoming, little Greece--whose economy is just 3 percent of Europe's GDP--could, against its will, set off a chain reaction that pulls down Portugal, Ireland, Spain, perhaps even Italy, and thereby throws Europe's, and then America's and the rest of the world's, fragile recoveries into reverse."

Reggie Middleton's picture

The year 2009 was the year of reflation theories and bubble blowing. Theses of "Green Shoots", catching the bottom, and QE reigning supreme were the order of the day. Sure enough, asset prices (nearly all of them) went one direction, straight up. We all saw it coming, but guys like me who actually count the money and rely on the fundamentals didn't believe it was a sustainable gain. It wasn't a bull market, but a bear market rally. After nearly one year, the reflationists have had their hay day, or have they?

madhedgefundtrader's picture

The outlook for the economy is bleak, at best. The stimulus package should have been at least $1.2 trillion. Any major spending cuts will produce “Hoover” outcomes. An extreme form of “trickle down economics" quickly reached a dead end. The banks’ accounting loopholes were so imaginative that not only were shareholders and regulators deceived, senior management was clueless as well. The winner of the Nobel Prize in economics reveals how “information asymmetry,” led to the financial crisis. The repeal of Glass-Steagle was a disaster. No wonder Main Street feels cheated.

Fibozachi's picture

Today's perfect doji on the daily chart of El Paso (EP) illustrates a specific type of trade setup that we at Fibozachi scan for. The tenor of 'this' price action is symptomatic of short-term exhaustion, typically resulting in an immediate correction over the next few sessions (1-3). On this expected setup the pre-defined (anticipated) risk/reward ratio is over 4:1 ... which means that one need be 'correct' c. 25% of the time to break-even (save commissions + slippage). Trading is nothing if not a probabilistic endeavor and we like those odds.