Today's winner -  Long term investors.


US stocks ??   i am not kidding...

Short Squeeze ,Great opportunity to Cost average Value Stocks


Right beneath all the Market turmoil and flash crashes,i see a great opportunity for buying the Value and Momentum players at a heavy discount..  I am not talking about Mall Discounts,i am talking about Outlet discounts and Costco discounts.  This market crash was caused by two unavoidable double edged sword of events

Friday - Massive option expiration in the middle of Rout

Monday  - Margin calls due to the Expiration of worthless options and issue of new covered calls.

Lets analyze today's crash at the peak levels ie. 1000 point DOW crash

FB -  Facebook was at one point trading at 72 $ and change.

The Momentum stock which not too long before valued at 110$ by leading market analysts,is now trading at 38$  discount. That is one hell of a discount for company that grows in the excess of 35% annually. One cumulative trade during opening selling was either buy or sell around 72$ and FB quickly bounced back to  82$ in 1 hour... That is 10 $ ride from lows...Looks like a huge market manipulation going or Short covering by hedge funds.Either way its enough heart attack for small investors like you and me.

AAPL - Apple plunges 6% and trading around April 2014 lows..

Apple the darling of Mutual fund owners was trading at the levels not seen since April2014.That is right before 4 quarters of earning surprise. For me that's a huge discount on earning multiples and zero premium on the earnings surprises we encountered past few quarters.Apple is a screaming buy at 95$.   The flash point trade around market around was 16 million shares with low price of 92$.. Lucky ones who got it.

Please never invest using Margin account.That will put u in peril.

More Analysis continues......................



Disclosure :   The author expresses  his/her own viewpoint on stock market and individual stocks.This is by no means a recommendation to buy/sell these stocks.Individuals are advised not take this as a recommendation whatsoever.  Invest your money at your own risk.

Today's winner  - American Economy - A place to  be finally

Market had close to 7 distribution days this past month and very few accumulation days to count on.. There are couple of things that are rattling investor sentiments. Here are some to quote

1, Fed interest Rate decision pending September

2, Falling Oil prices due to Iran Nuclear Deal

3, China Market crashes.

4,  China Devaluation of Currency.

5. Upcoming US selections. (seriously )

6, Greece Economy.

7,  Crash of Euro as a Stable currency.

8. Mammoth Rise of US dollar and US stock market making new highs.


Lets analyse each one of them briefly ,so that you don't have to pour through tons of freakonomic predictions placed in the media and guys screaming on their lungs in CNBC.

Fed interest Rate decision pending September.

       Meetings after Meetings with Yellen and Company yielded all but one confusion for the Banks and institutions sensitive to interest rates.  We are debating and panicking over 0,25 bp rise, give us a break feds. That's enough thinking over past 1 year, go ahead and raise rates as Markets have already priced in 0.25 BP July 2015. This will send a clear message to world that U.S economy is not tanking and printing Dollars to cover its financial mess. In fact looking at the Job number and Manufacturing indexes we have actually grown in GDP from 2008 when we lowered the interest rates to pump cheap money into Banks. Any Delay in this will cause Global investors to panic and kick up a massive deflation of Dollar based assets.


Falling Oil prices due to Iran Nuclear Deal

Ok now...Kerry wins the Nobel peace  prize for Middle East coffee talks, OOh lah  we got ourselves a deal.  Iran is no longer a threat, (israel and Saudis never thinks so ) . We made new friends and scared away our allies.. Well who is benefited from all this ?  of course Iran and its Middle East allies. Russia gets to openly ship weapons and countries like India can go back to cheap oil days of last decade. Good for them.. What did we get in the process ?  Cheap oil and Good bye to all the progress made in the Carbon emissions control measures.  In the process we also killed the Fracking Oil industry from ever making any profits Note: U.S Oil production actually fell in the last quarter due to the Oil industry paralyzed by the fall of oil.  But all is good for the world's largest consumer of Natural resources.

China Market crashes

What is happening to China. The so called Red giant, 8 trillion economy is in shambles from when 2015 . How can i economy so strong , so powerful and its influences reaching across the Globe can look so much in trouble. Well answer lies in half baked Capitalism that China has followed for many decades. It work as long as they keep producing cheap  goods and the rest of the world keeps buying. It made lots of sense in 90's when Developed economies where looking to offset the high labor costs and ever increasing consumer demand. China became the single shop for buying finished goods and mass production factory for rest of the world. This killed smaller economies like Korea, Taiwan, Thailand and Malaysia as manufacturing basis for Finished goods and offshore production facilities.
But the rise of new economies like Indonesia, India, Brazil quickly became self sufficient by balancing their domestic consumption with Global demand. China began to lose its sheen after US and European financial crisis crippled the consumer demand ,making them take adverse steps to curtail imports and increase domestic production.   This was not apparent until 2014 when the US external deficit narrowed its fastest pace in a decade.. Thanks to Obama of course for his socialistic approach to failing capitalism.


(To be continued)