Opening Reversal System Coming in 2015
This is a unique system that brings the concept of pressure points within a market to the opening of the day. How a market opens is as critical as where it finishes. This is the system that was personally developed from intraday trading and hedging out of necessity. It was developed in the 1970s to handle a PANIC and there is truly nothing like it on the boards. This was available ONLY to major institutional clients previously. We will allow non-institutional subscribers but youMUST attend a seminar on this system. That will be a minimum requirement for professional traders only.
Some sell signals on the open pick the very day of the low and require quick and rapid action. This system tends to be more aggressive than the Closing Reversal System. Clients who have known of this system begging to bring it online will get their wish.
We are working on the terms and conditions for this service. We will inform everyone when it goes live. This appears to be January. It is in testing right now to ensure the code has been ported over correctly.
ECB Stress Test totally Bogus
For those of us in the real world familiar with real live trading, there is a huge difference between theory and reality. I was invited by a very well-known university to observe a program pilot designed to train people to trade in banks funded by banks. They rented a hotel and took many rooms with each room set up as a pretend bank dealing desk. The professor would then control the screens and pretend to be the central bank. If the students did not respond according to theory, they failed. I was speechless that the banks funded this project and it was just a joke.
Well, welcome Bank Stress Tests. You will not believe how they are designed. You guessed it – on theory. The people who designed this fiasco are again void of trading skills. This test assumes a perfect market with infinite buyers. They do not comprehend even what a PANIC is no less how to trade during a PANIC. In the middle of such chaotic times of crisis, theyPRESUME there will be buyers when needed and ALL the banks will be forced to sell exactly the same instruments that everyone else will have to sell all simultaneously! Where will this mythical bid appear? Where’s the risk test in that? And, 20% of the banks failed even under such perfect conditions! The ECB Stress Tests revealed under PERFECTconditions that EU Banks Face Capital Shortfall. With capital raising, this has been reduced under this perfect world scenario by selling stock but honestly, why would you buy stock that the stress test reveals will evaporate into thin air?. Can you imagine what will happen in real-time? They cannot raise enough money to fix this one.
The New French Revolution
The French parliament voted Tuesday in favor of a draft law that could, for the first time, make it possible to remove the country’s president from office through a US-style impeachment. The bill, already passed by France’s lower house, was approved by the Senate by 324 votes to 18 and it will now go to France’s Constitutional Council, which must decide if the bill complies with the French constitution, before becoming law.
If approved, the law would represent a radical change to the legal status of the French head of state – who has so far enjoyed greater legal protection than almost any other Western leader. Believe it or not, under France’s current constitution, the French president is immune from criminal prosecution during his five-year term and cannot be removed from power except in cases of high treason.
Hollande’s unpopularity may be his undoing after all.The new law would not take away the president’s criminal immunity while in office, but would give parliament the power to move for an impeachment in the event of a “breach of his duties patently incompatible with the carrying out of his mandate”. Parliament would have the power to begin the impeachment process through a two-thirds majority vote. Hollande should just leave while he still has his head.
The Suicides in Banks Keep Increasing
Deutsche Bank Frankfurt
A senior New York lawyer at Deutsche Bank has been found dead. The circumstances pointed to a suicide. The 41-year-old had been found hung on a staircase railing by his wife on Monday. He was involved in the litigation of the bank scandal involving interest rate and foreign exchange market manipulation. He was the legal expert who worked eleven years for the bank.
Last January, the 58-year-old former German bank risk manager Broeksmit William, who was a close confidant of Bank co-chief Anshu Jain, was found dead in his London flat. A report published in March examination reported he too committed suicide.
Party Time – ECB Bank Stress Test Today – 20-40% of all Banks Expected to Fail
Well it has arrived. The ECB stress test of European banks today on Sunday is expected to see at least 20 percent to nearly 40 percent of all European banks fail. They just cannot understand raising taxes reduces disposable income and thus the economy, borrowing, and investment – dah! European banks are not doing well even after the billions of euro that the ECB has pumped into their dead bodies in recent years. This result will represent a disaster for European monetary and banking policy. They just cannot figure this out. Amazing how the most arrogant and brain-dead are attracted to government.
IMF Lowers SDR Interest Rate to 0.05%
The International Monetary Fund has been forced to change the calculation of its most important interest rate after aggressive monetary easing around the world threatened to turn it negative. Late on Friday, the IMF said it is introducing a floor of 0.05 percent for the interest rate on Special Drawing Rights, its own form of international currency.The IMF’s move illustrates the fear of DEFLATION how this will become even worse 2016-2020. The global economy is totally beyond the control of central banks and the IMF. Global financial conditions are now easier than they have ever been still even more than five years after the end of the Great Recession (2007-2009) as it is being called. We are currently still at the lowest interest rate level in its sixty-eight year history at the IMF.
The entire problem has been the banking industry. The wild high-flying banks would rather trade than lend and therein was the problem. As the economy turned down thanks to the bank’s leveraging the most dangerous market of all, real estate since it impacts the core economy, cutting rates did not stimulate borrowing nor lending. The banks took the money to cover losses and cut their rates to depositors wiping out the elderly. Liquidity has not come back and then add-on top of this FATCA, which has reduced global investment precisely at the time it was needed.
In 1985, I lived in London in Kensington. The pound fell to $1.03 and the Brits thought real estate would collapse for nobody saw an opportunity. Everything turned on foreign capital. I bought a car I paid $30,000 with the pound at near par, drove it around for 2 years and sold it for $40,000 because the Italians raised the price when the pound crashed. Then the pound went back to almost $2.
It was that international capital inflows that turned the economy. With government hunting international money flows for taxes, they have seriously impacted the world economy far beyond anything domestic myopic economists contemplate. You cannot raise taxes at a time like this. They are destroying the world economy faster than anyone thought possible. This will raise tensions, civil unrest, and opens the door for war. Southern Europe will blame the North and the idea that a new world order could be created with eliminating governments creating just one was a pipe-dream. They forgot about civil unrest and separatist movements against centralized planning that resulted in the collapse of Communism.
The SDR rate is what the IMF pays to its lending nations for the use of their funds. It then adds a margin to calculate the rate on its loans to Greece and other countries. The change will ensure lenders get a small positive return and fractionally raise costs to borrowers while setting in motion its own demise as capital eventually is needed as tax revenue declines.
After staying positive throughout the financial crisis, that SDR basket has NOWthreatened to turn negative in recent weeks, as both the euro and yen rates have fallen below zero. They were affected by the European Central Bank’s move towards negative rates and continued easing by the Bank of Japan. These people cannot grasp how the economy really works for they are all deranged and drunk on their own power precisely as Hillary just said – government creates our very existence – it is the Financial God. Private business creates nothing in her own words.