Protective Puts Versus Puts for Profit

A friend and I have actively discussed how best to position ourselves for the near-term, bearish risks in the market. As my favorite technical indicator, T2108 – the percentage of stocks trading above their 40-day moving average (DMA), hit oversold territory, he asked my opinion about adding to his SSO put spread. Puts on SSO … Read more

Pity the Fool Who Does Not Sell His Gold…Through the Mail

Time for a little fun with gold. As a child of the 1980s, I took particular interest in a fun October 13, 2010, Bloomberg interview with A-Team star Mr. T., the celebrity pitchman for Gold Promise. Gold Promise is a service run by Cash America International, Inc. (CSH) that allows people to sell their gold … Read more

Sold My TIPS to the Fed – A Review of the Current TIPS “Debate”

Last week, the iShares Barclays TIPS Bond Fund (TIP) surged to a fresh 2-year closing high on the same day the Federal Reserve issued its latest monetary policy statement. (TIPS = Treasury Inflation-Protected Securities – I will refer to “TIPS” when discussing the actual bonds and use “TIP” to refer to the ETF that uses … Read more

More Money Went into Bonds Funds in 2009 Than in the Last Ten Years

The CNBC interview post below with Marilyn Cohen (from Envision Capital and author of “Bonds Now!: Making Money in the New Fixed Income Landscape“) is a good watch for anyone interested in fixed income. One key statistic that caught my attention was Cohen’s claim that more money went into bond funds last year than went … Read more

SEC Makes Up for Lost Time By Going for Maximum Impact on Goldman Sachs Fraud Charge

The news has rippled across the globe that the U.S. Securities Exchange Commission (SEC) finally got around to charging Goldman Sachs with fraud: “The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to … Read more