The G Manifesto

Commodity Trading: Are the Stress Tests causing you Stress?

For April 20th– April 24th 2009
By: Matthew Bradbard

Buy The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market is Down by Peter Schiff

Click Here for Pit Bull: Lessons from Wall Street’s Champion Day Trader

According to several news sources the US government will issue a report on April 24th that explains its stress test on 19 of the largest financial firms and then release the actual results of those tests on May 4th. What these tests should confirm is that we have issues in our banks and in order to get our economy back on track these banks will need to be recapitalized, start lending and some may need to fail. In order for conditions to get back to a state were we can see growth, those are the first things that need to be done. We cannot proceed forward with a broken system as the financial institutions are the lifeblood of the economy. Not only would this increase the health of the economy but it too would instill the much needed confidence and perhaps the risk appetite of the investor may well return.

Energies

The US Department of Energy said crude oil supplies were up 5.6 million barrels last week, supplies of unleaded gasoline were down 900,000 barrels while heating oil supplies were down 700,000 barrels. June crude oil closed down $1.98 unable to stay above the 20 day moving average at $53.20. Resistance comes in between 53.30 and 54.00 with support first at 51.50 followed by 50.00. If prices are unable to take out 54 early in the week we expect a trade down to 48.50. June heating oil was lower by 6 ticks closing at the 20 day moving average. 1.47/1.48 should serve as resistance with support coming in at 1.4225 followed by 1.40. On a move lower in Crude expect the low 130’s. June RBOB was higher by 88 ticks last week. Support comes in at the 50 day moving average at 1.3870 with resistance at the high from 3/26 at 1.5626. On a trade above those levels look for buy stops to be triggered. We advised clients to buy July 1.54/1.74 calls spreads last week; paying just over 650 points with a target of 950/1000 points.

Buy The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market is Down by Peter Schiff

Click Here for Pit Bull: Lessons from Wall Street’s Champion Day Trader

The US Department of Energy said underground supplies of natural gas were up 21 billion cubic feet last week to 1.695 trillion cubic feet. Supplies are now up 35% from a year ago and up 22.5% from the five-year average. June natural gas closed up 15 cents as the lows have held for the last 2 weeks. Since the first of the year prices have fallen by 37% so we feel a bounce is overdue. The stochastic on the daily chart has started to trend higher on an increase in volume which should lead a trade over $4.50 in coming sessions. We maintain positions for clients in June futures and options. 3.65/3.70 on June is our buy zone as we expect the low from 4/13 at 3.64 to hold. Resistance is seen at 4.20; the 50 day moving average which prices have not been above since mid-July. Look at the weekly charts before ruling out a buy at these levels.

Currencies

The Euro started last week strong, but on light volume as Europe was closed only to give back those gains ending the week 163 ticks lower. Our target at the 50 day moving average was reached and as we suggested last week, look to book profits from recent short positions. The trend will remain down but the easy money on shorts has been made. Support is seen at 1.2975 followed by 1.2840 with resistance at 1.3125 followed by 1.3260.

The Aussie was lower by 19 ticks last week and although longer term we are extremely friendly to this currency, in the immediate future we expect a retracement. This should set up an excellent long entry for a position trade. Our buy zone is .6650/.6750 for our clients. The 50 day moving average comes in at .6700. First support comes in between .7050 and .7100 with resistance at .7275. One of clients has suggested 5 cent call spreads in September which is our on our radar.

As predicted the Swissie came under pressure last week giving up 79 ticks. Much like the Euro, the Swissie started the week strong only to fall back the next four sessions down 2 ½ cents in that time frame. Now that the .8600 level has been penetrated we should see .8525. On a trade back over .8600 look for resistance at .8675 followed by .8750.

The Loonie was higher by 71 ticks but is starting to exhibit signs of an interim top closing over 1 cent off its weekly high. Our target has and remains 84 cents, but was the trade up to .8368 close enough to reach our objective? Support comes in at .8100 followed by .8025 with resistance at .8370 followed by .8450. For futures traders you should be trailing stops on longs as to not give back too much. For our clients still holding May and June call options we are still looking for a challenge of 84 cents. The BOC will meet this week and is expected to keep rates at 0.50%.

Continue Reading about Currencies and Metals

To find out exactly how we are positioning our clients in commodity futures and options,
Contact us today at 1-888-920-9997. Don’t forget to tell them The G Manifesto sent you.

To view our full commentary which includes the sectors of energies, livestock, currencies, financials, grains, softs, and metals, subscribe to our 4 week free trial by visiting this link: http://mbwealth.com/subscribe.html. Don’t forget to tell them The G Manifesto sent you.
_____________________________________________________________________________________Risk Disclosure: The risk of loss in trading commodity futures and options can be substantial. Before trading MB Wealth recommends that you should carefully consider your financial position to determine if commodity trading is appropriate for you. All funds committed should be purely risk capital. Past performance is no guarantee of future trading results. There are no guarantees of market outcome stated, everything stated above are our opinions. Calculations of profit and loss have not factored in commissions and fees.

Peter Schiff: Not All Economists Agree

Buy Crash Proof: How to Profit From the Coming Economic Collapse by Peter Schiff

Buy The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market is Down by Peter Schiff

Click Here for Pit Bull: Lessons from Wall Street’s Champion Day Trader

In a speech this week summarizing his administration’s economic policies, President Obama grossly overstated the support these policies enjoy by claiming, “economists on the left and right agree that the last thing the government should do during a recession is cut back on spending.” There are a great many economists who were surprised to learn that, apparently, they now agree with the President.

Reading straight from the Keynesian playbook, Obama justified the creation of multi-trillion dollar deficits by asserting that the government must fill the spending void left by the contraction of consumer and business spending. As one of those mythical economists who do not agree with the President, I argue that it is precisely this type of boneheaded thinking that got us into this mess, and it’s the reason we are now headed for an inflationary depression.

Buy Crash Proof: How to Profit From the Coming Economic Collapse by Peter Schiff

Buy The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market is Down by Peter Schiff

Click Here for Pit Bull: Lessons from Wall Street’s Champion Day Trader

We do not need, nor should we attempt, to replace lost demand. As Obama himself pointed out in the same speech, Americans have been borrowing and spending too much money. These actions created artificial demand, underpinned by the illusion of real wealth in overvalued stock and real estate markets. Given his intelligence and rhetorical training, it is hard to fathom how President Obama cannot notice the inherent contradiction in his argument.

While Obama commended millions of American families for making the hard choices to reduce spending, pay down debt and replenish savings, he later outlined the government’s intention to spend every American household deeper into debt, thereby undermining all the good that personal austerity would have otherwise produced.

Obama also made the clear-eyed observation that the foundation of our economy was unsound and that a sturdier one needed to be laid. To do this, he even asserted that we need to import less and export more. This has been one of my fundamental points. Our economy is unsound precisely because it is built on a foundation of consumer debt. Instead of spending for today, we need to invest for tomorrow. However, we cannot save more unless we spend less. Production requires capital, which only comes into existence when resources are not consumed.

However, by interfering with this process, Obama prevents the very transformation he acknowledges must take place. When the government spends what individuals save, private investment is crowded out. Society is deprived of the benefits such savings would otherwise have brought about. How can we lay a solid foundation if the government takes away all our cement?

Continue Reading

Source

The Rest is Up to You…

Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com

AZ- Ski Mask Way Freestyle

The Madagascar Sapphire Report

Click Here for The Sapphire Sea: A Gemstone Thriller

A rampant desire to accumulate wealth pulses through Ilakaka’s streets. There is no bank, yet it is home to businesses worth millions of dollars.

It was back in 1998 that the discovery of major sapphire deposits in the hot and rocky plains of Madagascar’s southern interior sparked an extraordinary scramble for wealth.

So abundant were sapphires that they could simply be sifted from the river bed or picked up from the hot dusty earth. Fifty per cent of the world’s sapphires are said to come from this lawless region.

Click Here for The Sapphire Sea: A Gemstone Thriller

Over time people have been forced to dig deeper in their searches. Mineshafts wide enough for one man to descend are dotted around like lunar craters.

Beneath the surface men dig in tiny cramped caves, labouring in subterranean heat, the hope of finding sapphires tempered by the constant threat of a collapsed shaft. Desperation and greed mean many are killed or die in the pursuit of the precious gems.

People & Power takes a look at the extraordinary story of Ilakaka and the ‘sapphire rush’ through the eyes of those effected; gem dealers, mine owners, police chiefs and miners, those who risk their lives on a daily basis in search of that one stone that they hope will transform their impoverished lives.

What is life like in Ilakaka amidst the whirlwind pursuit of profit?

Madagascar Saphire Report Part I

Madagascar Saphire Report Part II

Source

Click Here for The Sapphire Sea: A Gemstone Thriller

Sapphires: Great to Heist.

But think twice about buying them for your wack girlfriend.

The Rest is Up to You…

Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com

EPMD Crossover

Tax Tea Parties by Paul Krugman

Click Here for The Return of Depression Economics and the Crisis of 2008 by Paul Krugman

This is a column about Republicans — and I’m not sure I should even be writing it.

Today’s G.O.P. is, after all, very much a minority party. It retains some limited ability to obstruct the Democrats, but has no ability to make or even significantly shape policy.

Beyond that, Republicans have become embarrassing to watch. And it doesn’t feel right to make fun of crazy people. Better, perhaps, to focus on the real policy debates, which are all among Democrats.

But here’s the thing: the G.O.P. looked as crazy 10 or 15 years ago as it does now. That didn’t stop Republicans from taking control of both Congress and the White House. And they could return to power if the Democrats stumble. So it behooves us to look closely at the state of what is, after all, one of our nation’s two great political parties.

Click Here for The Return of Depression Economics and the Crisis of 2008 by Paul Krugman

One way to get a good sense of the current state of the G.O.P., and also to see how little has really changed, is to look at the “tea parties” that have been held in a number of places already, and will be held across the country on Wednesday. These parties — antitaxation demonstrations that are supposed to evoke the memory of the Boston Tea Party and the American Revolution — have been the subject of considerable mockery, and rightly so.

But everything that critics mock about these parties has long been standard practice within the Republican Party.

Thus, President Obama is being called a “socialist” who seeks to destroy capitalism. Why? Because he wants to raise the tax rate on the highest-income Americans back to, um, about 10 percentage points less than it was for most of the Reagan administration. Bizarre.

Continue Reading

Click Here for The Return of Depression Economics and the Crisis of 2008 by Paul Krugman

The Rest is Up to You…

Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com

Killah Priest – The Hit ( Unreleased !! )

The Truth about The Somali “Pirates”

“Only the devil and I know the whereabouts of my treasure, and the one of us who lives the longest should take it all.”

– Edward Teach AKA Blackbeard

Click Here for Villains of All Nations: Atlantic Pirates in the Golden Age

Click Here for Dangerous Waters: Modern Piracy and Terror on the High Seas

Be very wary of Western Media. My best college Professor told our class: “Half of what you read in the Newspaper is a lie”. Too which I said, “Well, then why don’t you read half the paper?”. Which in turn made everyone in the class laugh, including a fly girl that became a San Diego Charger Cheerleader. I swooped her. But that’s neither dope Champagna nor Tony Montana.

Anyways, the point I am trying to make is don’t believe everything our country is telling you about the Somali “Pirates” and how horrible they are.

Here is The Truth:

Following the collapse of the Somali regime in 1991 The “International Community” (Italy, France, Spain, Greece, Russia, Britain, Ukraine, Japan, South Korea, Taiwan, India, Yemen, Egypt and many others.) has been illegally poaching and destroying the Somali Marine Resources.

This Illegal, Unregulated and Unlicensed fishing is destroying fish stock, marine life, and the habitats.

Illegal, Unregulated and Unlicensed fishing are using trawlers in even the inshore areas of reserved for artisanal fishing.

These illegally caught fish are “laundered” with legitimately caught fish.

Since Somalia has not had a functioning “Coast Guard”, the rest of the world has taken advantage of the situation as they have vastly over fished their own seas.

Click Here for Villains of All Nations: Atlantic Pirates in the Golden Age

Click Here for Dangerous Waters: Modern Piracy and Terror on the High Seas

K’naan – What’s Hardcore?

Many Somali fisherman have been killed by trawlers and had their fishing nets destroyed over the last 18 years.

In 2005 there were over 800 illegal fishing vessels At One Time in Somali waters.

Over $450 Million in fish annually, have been taken illegally from Somali waters with out paying tax or royalties to the Somali People. And since it is unregulated, they have not paid attention to conservation or the environment.

A bunch of other complicated license scams have been run, which I can’t explain because even I think the shit is confusing.

The Somali’s have complained to the UN at least three times. No one listened.

Shyne – That’s Gangsta

Industrial, Nuclear and Toxic waste have been dumped in Somali waters. The waste has caused deformed babies and killed many people.

Somali fishermen in various regions of the country also complained to the international community about the illegal foreign fishing, stealing the livelihoods of poor fishermen, waste dumping and other ecological disasters, including the indiscriminate use of all prohibited methods of fishing: drift nets, under water explosives, killing all “endangered species” like sea-turtles, orca, sharks, baby whales, etc. as well as destroying reef, biomass and vital fish habitats in the sea.

Now, who are the “Pirates”?

So what do you expect the Somali Fisherman to do?

Lay down?

Imagine what would happen if you fished illegally and dumped waste off the coast of San Diego?

Ill tell you, you would have every San Diego Fisherman and Surfer blowing up your boats.

Click Here for Villains of All Nations: Atlantic Pirates in the Golden Age

Click Here for Dangerous Waters: Modern Piracy and Terror on the High Seas

Try dumping toxic waste on The North Shore. Or try dumping chemical waste on Maroubra Beach and see what The Bra Boys do.

If nuclear waste was dumped on your beach you’d grab a cutlass, too.

And you would stop him in his tracks and show him you are Ruthless.

A couple more points to bring up:

Piracy is the result of one thing: Rebellion to unjust activity.

Sure the Pirates are living it up, smoking hashish, boozing, swooping mad girls, and chowing down stimulants. Who can blame them? I would too. In fact, they sound like some cool cats to roll with.

Now that we killed a few Somali “Pirates”, the Somali people are completely backing the Pirates. So are the Islamic Militants.

The Hornet’s Nest has been stirred.

And we cannot fight another war on another front (See The Art of War).

Remember one thing: What did America do, in the days of George Washington, before we had a Coast Guard?

We used Pirates.

The Somali Pirates: The Most Radical Revolutionaries of our Generation.

Let’s make peace in Somalia. Then we can go over and swoop Fly Somalian Girls.

The Rest is Up to You…

Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com

Source
Source
Source

Please Listen – Wale

It’s Funky Enough by The D.O.C.

Its Funky Enough – The D.O.C.