Presidential Election Trade Setup

The market was on the uncertain moves early in the open probably because of the presidential election.

I guess the market participants are gauging the trend of the voters who is going to get the majority votes because of the closed contest.

And this chart shows that by the time (around 11:30 am. E.T.) the market rallied, seems the participants had the idea who's going to win.

Let's just wait and see by night time!

For the trade today, I call it the Presidential Election Trade Setup.

Buying at the settlement price when the MA's shows confirmation (arrow) for a long trade.

Exit the trade within the R2 level is the  best trade for today considering the market is looking for a certain direction.

No need to wait for the whole market session for it might turn volatile at the latter part because of the election.

Trade safely!

The most indebted man in the world owes former employer $6.3 billion

Former financial arbitrage trader Jerome Kerviel is the most indebted man on the planet, owing his former employer $6.3 billion.

The amount Kerviel owes to French bank Societe Generale for fraudulent trades made in 2007 and 2008 would make Kerviel one of the 50 richest people in America if those debts were assets.
 

But Kerviel cannot even begin paying off his debts until 2015, when he is scheduled to be released from prison. Kerviel recently lost an appeal case in which he argued the corruption at Societe Generale was widespread.

The Atlantic's Matthew O'Brien writes that Kerviel managed €50 billion ($73 billion in unadjusted dollars) worth of unauthorized trades during his tenure at Societe Generale, using a sophisticated scheme of computer hacking and deceptive trades to deceive the bank.

O'Brien writes:

"In plain English, arbitrage just means taking advantage of discrepancies when things should have the same price, but don't. The idea is to buy the cheaper one, sell the more expensive one, and then wait for them to converge. The beauty is it doesn't matter whether markets go up or down--you're both long and short--just that the prices actually converge."

O'Brien spoke with former investment banker and current University of San Diego law professor Frank Partnoy about the logistics of trying to collect $6.3 billion from a single individual.

"Well, he's obviously not going to be able to pay the fine," Partnoy told the Atlantic. "What happened to Kerviel is the financial equivalent of sentencing someone to life plus 100 years. They'll likely reach some kind of agreement where a significant percentage of any money he makes for the rest of his life will be paid into a fund to cover the fine. He'll be like Sisyphus pushing the boulder up the hill every day for the rest of his life."

And while you could debate whether there are better ways for Kerviel to pay back Societe Generale, Partnoy offers a stark comparison to the fines levied against some of the world's largest financial institutions. In 2010, Goldman Sachs agreed to a $550 million settlement with Securities Exchange Commission, paid in part to investors and the U.S. government, which the SEC described as the largest settlement in history against any Wall Street firm.

Facebook's Sandberg sells $7.4 million in stock

Reuters – Fri, Nov 2, 2012 7:43 PM EDT

By Alexei Oreskovic

 

SAN FRANCISCO (Reuters) - Facebook Inc Chief Operating Officer Sheryl Sandberg and two other executives at the social networking company sold millions of dollars worth of stock this week as restrictions on insider trading expired.

Sandberg netted about $7.44 million by selling roughly 353,000 Facebook shares on Wednesday, according to a filing with the SEC on Friday. Sandberg still owns roughly 20 million vested shares of Facebook stock, including shares held in her trusts, according to the filing.

Facebook General Counsel Theodore Ullyot and Chief Accounting Officer David Spillane also sold millions of dollars worth of shares this week, according to filings. All the Facebook executives' sales were part of pre-arranged stock trading plans.

The sales are the first by Facebook's senior management following the company's high-profile initial public offering in May.

The world's No.1 online social network became the only U.S. company to debut with a market value of more than $100 billion, but has seen its value plunge more than 40 percent since then on concerns about its long-term money-making prospects.

Shares of Facebook, which were priced at $38 in the IPO, closed Friday's regular session down 3 cents at $21.18.

The flood of shares set to hit the market as insider trading "lock-up" provisions expire in several phases have added to the pressure on Facebook's stock.

Roughly 230 million shares of Facebook became eligible for trading this week, as trading restrictions for employees expired. Another 800 million shares will be eligible for trading on November 14, significantly expanding the "float" of roughly 692 million Facebook shares that were available for trading as of September 30.

Facebook's 28-year-old chief executive, Mark Zuckerberg, has committed to not sell any shares before September 2013.

Ullyot sold slightly more than 149,000 shares on Wednesday and Thursday, collecting $3.13 million. Ullyot has an additional 1.27 million in vested shares.

Spillane sold 256,000 shares on Wednesday, more than half of his vested shares, for proceeds of $5.4 million. Spillane had more than 863,000 Facebook shares, including unvested shares, according to a filing in May.

(Reporting By Alexei Oreskovic; Editing by Bernard Orr)

Visa Is The Passport To Good Investing

Showing the weekly and monthly chart of the Visa (V) stock since its IPO in the mid of 2009.

It formed a cup with a handle between 2009 and 2010 (the monthly chart).

Since then it continues to go higher.

This is the classic form of good investing, the buy and hold as Warren Buffet, Peter Lynch profess?

'A buy what you know investing', considering Visa is a household name before it bacame a public company.

If you buy 100 shares then say $60.00 per share ($6,000.00) , your investment now at $143.00 is netting +$8,300.00 ($14,300.00).

That's more than 50% gain, and the stock will continue to go higher the way it is performing.

 

Friday's Trade Setup

After Thursday's jumper trade, the market somersaulted last Friday's trading day.

After the euphoria, the market turn ugly and made a turnaround.

Probably because of Friday, a profit taking days for the traders.

Likewise of the Apple stock (AAPL), it went on a selling spree the past days and that affected the whole market.

It's like where the Apple goes, so the market too.

For last Friday's trade setup, the best entry is to short the market where it starts the signal below the settlement price as shown from the arrow below.

The moving averages gave the confirmation when its starts to crosses over and descends below the previous close.

Exit the trade before the market close.

Thursday's Jumper Trade

The market 'jumped' early in the market open last Thursday's market.

It continues to move upwards till the close.

I guess all the participants were eager to buy the market because of 'after effect' from Sandy (hurricane) that batters the east coast especially in New York where the market seats.

The best entry is to buy the market in the open and exit before the close for a no-brainer trade?

This trade setup is a predictable 'kinda' move considering the market was closed the past two days due to the storm and the market was initially opened last Wednesday.

Most participants were still out then (last Wednesday) that's why the market move erratically on that day.

Come Thursday, all participants were all pumped up to buy the market that's why it surge in the open.

The market is a study of human behavior, and it's important to monitor the market sentiments.

Read the minds of the market is all that matters!

 

 

Friday's Trade Setup

The market was on the downtrend for the past four days of trading and doesn't show any sign of recovery.

There lots of events that was happening from around the globe that affected the whole market and likewise the earnings report of the most notable companies that moves the market, i.e., AAPL, GOOG, and others.

And most participants are taking early profits prior to the coming December holidays.

They are taking profits early to get the most advantage in price while the market is still way up.

At  the same time they are taking position from other instruments, 'buying on the deep opportunities'.

For today's market, the Nasdaq index show some kind of late trading opportunity.

As can be seen from the chart below, the QQQ etf's, which is the equivalent 'kinda' of the NQ futures.

The best entry is when it made/show a reversal pattern above the S1 level.

It briefly consolidates/tested above that level and then vertically bounced up to the R1 level.

Nice catch if you were able to take this kind of opportunity/setup.

And the ascending MA's gave the confirmation for a long trade.

Have a nice weekend fellow traders, hope you were able to capitalize on this last trading setup opportunity, erasing all the losses (for the bulls) the past four trading days.