Author Archive for The Wall Street Shuffle Team

Ahead of the Curve – May 13, 2013

Even New York Times now piling on Obama and Benghazi

“A long-simmering dispute over the White House’s account of the deadly assault on the American diplomatic compound in Benghazi, Libya, flared up on Friday, with a disclosure of e-mails that show the White House was more deeply involved in revising talking points about the attack than officials have previously acknowledged…”

Geithner’s IRS targeted groups that advocated small government, balanced budgets

“On Sunday, the Wall Street Journal reported that the Treasury Inspector General for Tax Administration has discovered that the IRS did not merely target groups containing the words “Tea Party” or “patriots” – the IRS gave heightened scrutiny for any conservative groups “raising political concerns over government spending, debt and taxes or even for advocating making America a better place to live.” Political leanings were the issue, not merely group names, a direct rebuttal to the IRS’ statement last week that screening was apolitical in nature…”

2009 – Obama jokes about having IRS investigate political enemies

“Back in May 2009, Professor Glenn Reynolds, better known to his followers as Instapundit, penned an op-ed in the Wall Street Journal in which he discussed some odd rhetoric from President Obama. Obama had been refused an honorary doctorate by Arizona State University, and Obama remarked, “President [Michael] Crowe and the Board of Regents will soon learn all about being audited by the IRS.”…”

Obama disclosed IRS scandal Friday to suppress growing Benghazi investigation

“The Internal Revenue Service under the Obama administration – described by Rep. Michele Bachmann, R-Minn., as the “most feared government agency” – admitted Friday it targeted conservative and tea-party groups during last year’s election because of their politics.

Bachmann, a former tax attorney, told WND in an interview the IRS admission means the credibility of the 2012 election is in doubt…”

Montgomery County Maryland asks residents to voluntarily turn in their guns

“Montgomery County residents handed over 111 guns, 11 BB guns, 10,000 rounds of ammunition and a grenade at Saturday’s statewide gun turn-in day, according to county police spokeswoman Lucille Baur.

Among the 111 guns were 68 hand guns, 27 rifles — including at least one AK-47 — 15 shot guns and a tiny pen gun, Baur said. In addition to the guns, police also received a sword and two canisters of tear gas, which were turned in by a former D.C. police officer who told police they left over from riots in 1968.

“A successful day,” Baur said….”

New immigration bill ALSO contains a national biometric ID for ALL Americans

“The immigration reform measure the Senate began debating yesterday would create a national biometric database of virtually every adult in the U.S., in what privacy groups fear could be the first step to a ubiquitous national identification system.

Buried in the more than 800 pages of the bipartisan legislation (.pdf) is language mandating the creation of the innocuously-named “photo tool,” a massive federal database administered by the Department of Homeland Security and containing names, ages, Social Security numbers and photographs of everyone in the country with a driver’s license or other state-issued photo ID…”

 

Ahead of the Curve – May 10, 2013

President cancelled

“Former Obama speechwriter Jon Lovett figured he could translate his Oval Office days into a successful political comedy for NBC.

Lovett’s 1600 Penn, a series which never caught fire with critics or the public, instead couldn’t make it to season two. The comedy, starring Bill Pullman as the president, got the ax today along with several other NBC series like Whitney, Up All Night and Deception…”

Hillary lied – but not “under oath” – not a problem EXCEPT she is an attorney

“Wednesday’s testimony on the Benghazi terror attacks by State Department whistleblowers before the House Committee on Oversight and Government Reform contradicted several statements by then-Secretary of State Hillary Clinton in testimony before House and Senate committees in January.

However, while Clinton may have misled Congress in her testimony, she likely did not commit perjury because she never actually testified under oath…”

Al Qaeda now running CIA war in Syria?

““Fighters feel proud to join al-Nusra because that means power and influence,” Abu Ahmed, a former teacher from Deir Hafer who now commands an FSA brigade, told the newspaper. “Al-Nusra fighters rarely withdraw for shortage of ammunition or fighters and they leave their target only after liberating it.”

“Fighters are heading to al-Nusra because of its Islamic doctrine, sincerity, good funding and advanced weapons,” added Abu Islam, a member of the FSA’s al-Tawhid brigade…”

Palestinian Authority – “If we had a nuke, we would have used it this morning”

“A senior Palestinian Authority has praised the use of violence against Israel, asserting that if the PA had the military wherewithal to rise up against the Jewish state, it would not hesitate to do so.

“I swear that if we had a nuke, we’d have used it this very morning,” vowed Jibril Rajoub during an interview with the Lebanese Al-Mayadeen TV channel, as reported by the Palestinian Media Watch (PMW)…”

Reality – US losing 600,000 jobs per month

“The Dow Jones is soaring. The unemployment rate is stable. People are shopping. America is in recovery.

Or is it?

Despite all of the positive spin being put on the global and domestic economic recovery, the truth is that nothing of the sort is actually happening…”

Pension plan operators draining cash from employees finally catch the eye of the regulators

“Watchdogs have finally noticed that pension loan operators may need a closer look.

As Dan Fisher and I detailed in a Forbes piece last year, there are an untold number of companies (mostly operating on the Internet) that offer to “buy” pensions. But no one seems to be regulating them…”

Slow Consolidation Day

The market had a boring day yesterday on mediocre total volume. After being in the green for most of the day, the market rolled over in the afternoon trading closing moderately in the red.

Down Volume and declining issues were both 65% on the NYSE. On the NASDAQ, Down Volume was 54% and decliners were 60%.

So selling wasn’t intense. And the cyclical sectors fared the best, which is still a bullish sign. The market has had a nice run over the past few weeks, and probabilities suggest it was just taking a much needed rest. It is not time to raise cash yet, and you should hold your positions.

On the currency front, the Yen is now trading at multi year lows and is over 100Y/USD. If you are short the Yen via YCS from my past newsletters, the trade still has legs as the Japan’s fundamentals for their currency and debt are weak.

If you are a short term trader, you could book nice double digit profits now. As for me, I intend to watch and let the trade run. It is only a matter of time before the Yen comes under extreme pressure. If you haven’t entered the trade, I wouldn’t chase it at over 100/USD, but would wait for a pullback.

We only have a few economic reports today, with Retail Sales being the most important. It is a very light day for earnings as well. There are no companies reporting on the S&P 500 or in the midcap sector. We do have around 30 small cap companies reporting. Some of the more notables are below.

If you have any questions, e-mail me at dstewart@noramassetmanagement.com and I will be happy to respond.

Dan Stewart CFA®

NorAm Asset Management

Economic Reports Today:

US Treasury Monthly Budget Statement

Retail Sales

Retail Sales Ex Autos

Business Inventories

Some Notable Earnings Reports Today:

Hecla Mining (HL – before market)

Sterling Construction (STRL – before market)

True Religion Apparel (TRLG – before market)

Beacon Roof Supply (BECN – before market)

Sirona Dental Systems (SIRO – before market)

Abraxas Petroleum (AXAS)

American States Water (AWR)

Silver Wheaton (SLW – after market)

Ahead of the Curve – May 9, 2013

Ted Cruz proposes that “foreign felons” (illegals) may never become citizens

 

11 recession indicators indicate caution necessary

 

JP Morgan vault gold, available for delivery, down to record low 140k ounces after massive withdrawals

 

Hillary Clinton – Benghazi perjurer?

 

Financing a home remodel

 

Is it possible? Over $11m spent by Obama PER “green job”!

 

Ahead of the Curve – May 8, 2013

Sanford (R) beats Colbert Busch (D) in South Carolina house race

 

Benghazi deaths fuel Obama impeachment rumors

 

Half of all American believe that states should be able to block federal laws

 

Obama embraces anti-Christian activist working with Pentagon

 

New DOJ report proves anti-gun Obama wrong and NRA right

 

Banks ready to start lending again

 

Ahead of the Curve – May 7, 2013

Immigration bill written by unions and advocacy groups

“Senate Budget Committee ranking member Sen. Jeff Sessions (R-AL) claimed on Breitbart News Sunday that the “Gang of Eight” U.S. Senators did not in fact write the 844-page immigration bill, but special interest groups like the U.S. Chamber of Commerce, the SEIU, and AFL-CIO and extremist advocacy groups like the National Council of La Raza actually wrote the legislation…”

Police want kill switches for all smartphones

“An epidemic of cell phone swiping has prompted calls for a ‘kill switch’ that would render mobile devices inoperable if they end up in the wrong hands.

In San Francisco, California, half of the robberies reported in the last year involved the loss of a cell phone. George Gascon is the city’s district attorney and says things don’t have to stay that way.

“Unlike other types of crimes, this is a crime that could be easily fixed with a technological solution,” Gascon told the New York Times recently…”

Shock video shows the need for high capacity magazines

“A new video dramatization demonstrates in shocking, living color one reason gun-rights advocates resist bans on high-capacity magazines for firearms: Armed thugs don’t always attack alone…”

10 things credit bureaus won’t tell you

“1. “We track a lot more than just your credit.”

Credit bureaus are well known for tracking consumers’ credit history, including tabulating such details as whether they pay their bills on time and how much debt they carry. But the bureaus also maintain information that has nothing to do with credit, from consumers’ home addresses to their employment records…”

Have you purchased fake silver as an investment?

“With rising precious metals prices comes the age-old scam of counterfeits.

Fake gold coins and bars, many originating from China, have been discovered at dealers all over the world, including some high profile banks. Some analysts have even suspected that central banks, which hold thousands of tons of gold, may have fallen prey to the scam.

With silver having recently achieved all times highs and currently trading at around $25 per ounce, counterfeiters see a potential boon for their bottom lines. Counterfeiting silver isn’t new, and numerous fake 100 ounce silver bars and U.S. Morgan dollars have been discovered to date. But now the scammers have turned their sights on the official one ounce bullion coin of the United States – the American Silver Eagle…”

Where is inflation hiding in plain sight?

“Subdued headline inflation hides the inimitable rise of prices across the country; but ConvergEx’s Nick Colas examines the pace of inflation in four large cities across the US – Boston, Chicago, New York and San Francisco. All are home to multitudes of urban working professionals, share the same currency and have similar macro economies, though, Colas notes, the trend of price increases varies considerably (particularly with regards to NYC vs. the rest). The cost of living is up in all four cities since 2008…”

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