The Entire 2008 Crash Could Have Been Avoided With One Simple Trading Rule

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Daniel Drew,  10/11/2016

Hero Trading

There is a stark difference between BTFD and trying to save the world. While BTFD can be a valid strategy within shorter time frames, it's not appropriate when the market closes down 3% or more for the week.

BTFD! One Chart Shows Why This Is The Only Strategy That Matters

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Daniel Drew,  10/9/2016


We've all been told to BTFD. Now, we finally have a chart to remind us why this is truly the only strategy that matters in these "markets."

Average ROI in Corporate America Has Collapsed By 80% Over Last 40 Years

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Daniel Drew,  2/8/2016

Declining ROI

American corporations have been playing a musical chairs game where the loser gets taken out back and shot. During the last 40 years, the life expectancy of firms in the Fortune 500 has declined from 75 years to less than 15 years. In what Forbes called "the most important business study ever," Deloitte released The Shift Index, which compiles the ROI of 20,000 US firms from 1965-2009. The chart shows an 80% collapse in the average ROI of American businesses.

Fed Scrambles as Oil ETN Premium Soars to New Highs

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Daniel Drew,  1/17/2016

iPath Oil ETN Premium

Amidst the market chaos on Friday, a trader brought something strange to my attention. He asked me exactly what the hell was going on with this ETN he was watching. I took a closer look and was baffled. It took me awhile to put the pieces together. Then when I saw the story about mark-to-market being suspended, it all made sense.

With the oil fallout quickly spreading, the Fed is resorting to behind-the-scenes manipulation of energy debt, and now, that apparently includes oil ETNs as well.

Janet Yellen Can't Pop The Biotech Bubble, But The SF Gate Can

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Daniel Drew,  7/28/2015

Superman Roller Coaster

Biotech has a special place in the heart of the gambler investor. In the modern market where the average investor doesn't stand a chance, some of them indulge their hope and turn to lottery tickets. If only they can get the next Gilead or the next Amgen, they will become the next wildly successful "maverick" investor. More lottery tickets seem to be flying around than usual lately, floating alongside the recent biotech bubble. Some have doubted if this is a bubble. Maybe it's different this time. The SF Gate pondered this exact same question 15 years ago, and the market promptly replied.

How The SEC Engineered Every Stock Market Bubble Since 1982

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Daniel Drew,  7/10/2015

John Shad

Many Americans have discovered that those entrusted to protect us often become the most dangerous threats. Whether it's corrupt cops, bogus journalists, or even Ponzi-scheming church elders, it's not difficult to understand why trusting authorities has seemed like a risky proposition. Now, another institution deserves extra scrutiny. A closer look at the Securities and Exchange Commission reveals a single moment in time when the future of the country was transferred from the middle class to the uber-rich.

Free Trade Is Quantitative Easing For The Heroin Market

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Daniel Drew,  7/8/2015

Heroin Abuse

This all seems like good investment strategy: Convince everyone that "free trade" is good, take their jobs, make them desperate enough to become heroin addicts, and then take the last bit of their money by profiting from their drug-related healthcare expenses. For some reason, the average person always seems to come out on the wrong side of quantitative easing.

Jeb Bush Made Over $500,000 From Obamacare Law He Criticized

Daniel Drew,  7/6/2015

Jeb Bush Income

Jeb Bush continues the long tradition of playing both sides. You could say it's in his blood. His grandfather, Prescott Bush, profited from investments in the Nazi war industry until his company's assets were seized in 1942 under the Trading with the Enemy Act. Now, 73 years later, his grandson is straddling the line between the Democrats and Republicans by calling the Affordable Care Act a "monstrosity." Never mind the fact that this legislation led to some monster-sized profits thanks to his investments in Tenet Healthcare, where he was a director.

Happy Independence Day, Brought To You By The Chinese

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Daniel Drew,  7/4/2015

Foreign Holders US Treasuries

Home of the sugar babies and the land of free trade, happy Independence Day America...brought to you by the Chinese.

Sugar Daddies Are Paying Their Share Of The $1.3 Trillion Student Loan Balance

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Daniel Drew,  7/2/2015

Sugar Babies

As noted previously, we are in a new dark age where college does not pay. At $1.3 trillion, the student debt balance is not getting any smaller. Facing a lifetime of debt slavery, the millennial generation is doing whatever they can to avoid homelessness. Whether it's stripping or working at Rent A Gent, all options are on the table. Now, they are flocking to Seeking Arrangement to prostitute themselves so they can pay for school. Since 2009, the number of student sugar babies has increased by 1,200%!

How To Avoid Being A Retail Bag Holder

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Daniel Drew,  10/10/2016

Buying When The Market Is Up

One chart shows exactly why weekly price performance matters. This is what happened to anyone who only bought after the market was up for the week.

The Indexing End Game: The Wilshire 5000 Only Has 3,607 Stocks

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Daniel Drew,  8/7/2016

Wilshire 5000

What started with good intentions ended with embarrassment as American economic dynamism collapsed in a cascade of falling profit margins, financial engineering, labor devaluation, and lopsided "free trade" agreements.

Barclays Rigged Its OIL ETN By Limiting New Creation Units

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Daniel Drew,  1/21/2016


On Sunday, we warned readers that the iPath OIL ETN was trading at a 36% premium to its fair value. Today, we witnessed the brutal consequences of a two-class market where institutional traders steamroll the clueless retail investor. The OIL ETN plummeted by 17%, representing a loss of $126 million. Today's trading volume was 36.6 million vs average volume of 3.8 million, as institutional selling absolutely crushed retail investors.

Backwards Capitalism: Unprofitable Companies Outperforming For Last 15 Years

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Daniel Drew,  10/12/2015

Backwards Capitalism

Perhaps we've been doing it wrong all these years. Capitalism isn't about making money. It's about who can blow through money the fastest. When it comes to increasing shareholder value, there is, quite simply, no better way to do it.

A Homeless Harvard Graduate In The Schizophrenic Job Market

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Daniel Drew,  7/14/2015

Alfred Postell

The BLS continues to perpetuate the distraction officially known as the "unemployment rate" to hide the grim reality portrayed by the labor force participation rate, which shows the true decline of employment in America. The labor force participation rate of college graduates has never been lower. In the new normal, McDonald's has a lower acceptance rate than Ivy League schools. Just when you thought you had seen everything, a new story emerges: Alfred Postell has three degrees - accounting, economics, and law - but he is unemployed and homeless.

How The Media Confuses Americans About The Most Common Ways To Die

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Daniel Drew,  7/8/2015

Top Ten Ways To Die

The Charleston church shooting flooded newsrooms around the world. Did the killer act alone? How much did he really hate black people? Should we burn every Confederate flag in the country? When will another racist strike next? Stay tuned for more! After reading this, one would assume there was an evil Confederate in every town, ready to open fire on every family in America. The reality is much different. The greatest danger to the average American is the cheeseburger they ate for dinner last night.

Hedge Funds Make Billions Front Running Buy-And-Hold Investors Every Year

Daniel Drew,  7/7/2015

Front Running Expense Ratio

Hedge fund managers want you to believe they're rich because they're producers and innovators. The reality is they simply play by different rules. In this case, they are making billions front running the stock indices that financial advisers told their mom-and-pop investors were Wall Street's safest investments.

Breadwinner Jobs Vs. Hot Dog Jobs

Daniel Drew,  7/5/2015

Hot Dog Jobs

Job Growth in the New Normal.

Declines in good jobs and a surge in jobs that will keep you in poverty and despair.

Wall Street's Next Bonanza: Subprime Marriage-Backed Securities

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Daniel Drew,  7/3/2015

Marriage Leash

If marriage insurance sales take off, it's only a matter of time before Wall Street repackages it and sells it to investors via subprime marriage-backed securities. A boom in marriage speculation would ensue. Did you see your neighbor with his mistress last night? Buy some MBS credit default swaps on him and tell his wife what you saw.

Church Elder Defrauds Investors With "Holy Spirit" Day Trading System

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Daniel Drew,  7/2/2015

Holy Spirit

While it remains unclear if the Holy Spirit was behind these trades, one thing is for sure: When Charles Erickson's investors opened their recent statements, they said, "Holy Shit!"

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