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Monday, August 30, 2010

Stock Market News for the Week of August 30, 2010

We are starting the week strong, but let us be careful on the upcoming employment numbers:

Friday, August 27, 2010

Stock Market: What Do We Know About The Economy

Stock Market: What Do We Know About The Economy

“Is there a hidden agenda to the economy. Why did the stock market go up drastically on bad economic news?”

What Happened Today: Friday August 27, 2010?

Earlier this morning, the Commerce Department reported that GDP growth in the second quarter was downwardly revised to 1.6 percent from the advance estimate of 2.4 percent.

The Fed Chairman Ben Bernanke indicated that the Fed would mull over the purchase of additional securities should economic conditions worsen amid the slowing recovery. Despite indicating consideration of these easing measures, the Fed chief stopped short of promising any action at the current time.

Bernanke also stated that the recovery has slowed to a slower than expected pace, calling the economic outlook "inherently uncertain" and further stressing that the fragile economy "remains vulnerable to unexpected developments."

Thomson Reuters and the University of Michigan said that their consumer sentiment index for August was downwardly revised to 68.9 from the previous estimate of 69.6, although it remains above the July reading of 67.8.The downward revision came as a surprise to economists, who had expected the index to be revised up to a reading of 70.0.

What happened to the stock market?

Key institutional Investors ran the markets up this morning to pull the carpet right after and when it was low enough, they bought it. A 10% higher volume than average cannot be initiated by private investors.

The question is why are those institutions buying into this mess?

Or is there something we do not know?

We know everything, but we might not be aware: America booked the highest profits in 5 years – corporations are healthy . Sure growth is slow, but moderate in a worldwide comparison. The key problem America faces is high unemployment and it does not change – and surely influences consumer confidence. See one of our articles: or

Why do we face a continues high unemployment when corporate profits are hight?

America got more efficient the productivity per capita employed went up tremendously. But this also means that we might need to live with a 10% unemployment rate as it is a given for 30 years in Europe for example.

Corporate America shifted employment to the government and the government has the issue to finance the major shift of employment to unemployment.

So worldwide the US is still ahead and this makes institutions to put the money in the market.

The problem for the average market investor. This up move might be short term and next week institutions might take it out again. They do not act against private investors, they act in their interest. We highly recommend investors to learn how to deal with short term investments to the up and downside of the market. If you know how to invest, every day in the market is a beautiful day as long as it move. If it stops to move? There are beautiful strategies to make money on those days too.

NeverLossTrading is a primary institution to educate people in becoming a financial market investor. Check them out:

Sunday, August 22, 2010

Stock Market News for the Week of August 23, 2010

After last week all Stock Indexes are back into negative territory. Solid Corporate earnings and a continued high unemployment rate? What is our outlook. Corporate cash migrates towards acquisitions, that sure does not add jobs:

• Dell announced it is buying data-storage company 3PAR. Intel made public its plan to purchase Texas Instrument’s line of cable modem products. BHP’s bid for Potash Corp. Intel is looking to absorb McAfee

• Germany booked 27% higher durable goods orders which will end up in job replacing machines entering the country in the next 12 months.

Hence we will continue a zigzag curve with solid earnings and high unemployment rates.

This week all eyes are going to be focused on Friday with the new GDP numbers at 8:30 a.m. and Consumer Sentiment at 9:55 a.m.

Here are the key news events to consider this week:

Thursday, August 19, 2010

Stock Market: Where to Next?

We are riding the wave down, ready for a reversal – and love to buy cheap.

We had another day of weak employment data and the experts where surprised. At some points we are asking ourselves who the experts are? When you follow our publications: you can read that we expect since a while a stronger underlying economy with solid earning and a continued high unemployment number. The US is a mature economy and will not add proportionate jobs to the economic progress. All European countries deal with this issue since 30 years.

As a result: we will show growth by good earning and retracement by bad unemployment numbers for the near term future – and this is nobody’s fault it is an evolutionary process of a mature economy.

So now comes the question: what happens with all those earnings?

The CEO’s of America know they are requested to do something and what do they do?

1. The high profit carrying companies will go out and acquire companies and grow their base using cheap credits available to them. In the acquisition they will reduce redundancy and people will lose their jobs.

2. Others will invest in new machinery and equipment that will make even more people in manufacturing jobs redundant. German upped their economic outlook based on higher than expected orders for machines and machine tools. Who do you think placed those orders?

Usually the heard is wrong. Currently everybody knows the stock market will go down – so after the correction of today they look right and w might see another sell off on option Friday (tomorrow). But this will not mean we fall back to an S&P value of 700. As a result, our strategy is to day trade only for now, waiting for the right moment to place a swing trading options position on one of the major indexes.

Options are often considered a risky investment, but with the right trading plan they make us more money on the way up and produce less losses on the way down. When we say such, we are often ask: But how do you deal with the overnight risk?

Our Answer: Overnight Hedge with futures if needed and day time hedge or leverage with futures.

It sure needs the right pick of an investment instrument and this is what we teach our students. If you are interested:

Monday, August 16, 2010

Stock Market News for the Week of August 16, 2010

The week of Option Friday, Monday and Tuesday will decide where the market will go: up or down?

We are having an interesting week ahead of us. After a week of market drop we come to the point where the market forces will balance between moderate industrial growth with high profits and higher than expected unemployment. Monday will give us a first teaser and most likely a positive news. Tuesday push comes to pull and institutional money will decide where it wants to take the markets for now.

We are moderately bullish for the week ahead, but let the market tell us the direction.

Here are the key news events to consider this week:

Thursday, August 12, 2010

Stock Market: Are We Going Down ?

The stock market in a remaining uptrend with short term corrections based on high     unemployment rates, other countries are used too since decades.

We have sound economic growth with high unemployment and will have to accept those to be two independent variables. Why do we say so? The US is a mature economy, factories workers jobs got displaced over decades and by technologies and shift of production outside the country we will face high unemployment of around 10% for a long while. All European countries cope with such unemployment rates since 30 years.

Does the economy grow and progress? Yes. Usually we feel informed by the news, but as Mr. Mark Twain tough us: if you read or listen to the news, you are informed, but you never know if you are well informed.

Look at all the fantastic earnings reports of the last weeks, and most of the companies also showed revenue growth. Let us look at the newest reports:

Cisco Systems reported its fourth quarter results and said: Its fourth quarter earnings per share, excluding items, beat analyst estimates by a penny, with a 18% revenue growth. Sure some “experts” assumed they should have a 20% growth and with that they are greatly growing but below the expectation of an article writer. Tomorrow I expect the weather to be 9O F and sunny. St. Peter better meets my goals, else he is going to be rated below my expectation.

Kohl's Corp. (KSS), our retailer, reported second-quarter net income and revenues at forecasts and surely they did not meet experts expectations.

How sets up all those expectations and on what basis? It all sounds like a scam and somebody wants to purchase my shares at a lower price to sell it back to us at a higher price soon after.

General Motors reported a profit for the second quarter of $1.3 billion, up from $865 million in the preceding quarter, while sales at the Detroit-based company came in at $33.2 billion, versus $31.5 billion in the first quarter. This is a 5% growth and we want to overlook it?

We always trade with the market and now we get ready to bullish trades (the upside), interpreting the undercurrent of the market very different to the mass media.

Monday, August 9, 2010

Stock Market News for the Week of August 9, 2010

The week ahead will look at Government action paired with consumer sentiment. So what do we expect: not too much on the news side and for the rest we will go where the smart money is moving: overall we start out the with a slight bearish sentiment.
Here are the key news events to consider this week:

Sunday, August 8, 2010

What does it mean to be a Financial Market Investor

On a today's basis, only about 2% of the people who have investments in the world financial markets base their decisions of a sound education. See the magnitude of being a financial market investor to check and balance with your skills to succesfully trade up, down and sideways markets.

Since the internet, the world has no limits for financial market investors. From the comfort or our homes we can decide for our financial future or the future of our company.

The world Financial Markets:

  • Stock Markets
  • Bond Markets
  • Commodities Markets
  • Currencies Markets
The magnitude of different investment instruments is overwhelming and each of those markets has specifics to learn. How to cope with that? We need to focus and best get an education/mentorship to learn how investments in those markets can produce a return on our invested capital: ROC (Return On Capital). The transaction that leads to a financial market investment is casually called trading: one party buys and one party sells at a specific price.

NeverLossTrading analyzed and evaluated all those markets to provide you with a list of securities ……

Download the entire article of our website:


Saturday, August 7, 2010

Stock Markets: Economic Growth Paired with High Unemployment

“Economic growth with continued high unemployment will lead to stock market growth and deep short term corrections. A dangerous trading ground for the small investor.”
We said it in multiple of our publications: The US economy is in a an uptrend with high and to be continued unemployment. As a point of reference:

Friday, the Labor Department said that non-farm payroll employment fell by 131,000 jobs in July following a revised decrease of 221,000 jobs in June. Economists had expected employment to drop by 87,000 jobs compared to the loss of 125,000 jobs originally reported for the previous month.

At the same time, the report showed that the unemployment rate came in unchanged compared to the previous month at 9.5 percent, reflecting a decrease in the size of the labor force. Besides those jobs that disappear many of the non-registered workers are out of jobs or even out of the country. So we definitively have a decrease in size of labor registering for unemployment.

This is a big issue for the government is to cope with the additional costs and requirements of a 10% unemployment rate. A long needed restructuring of taxes, health care and social benefits is on the horizon. As a result of ongoing good corporate earnings and growth we will see economic progress which lets the markets climb, followed by sharp pullbacks on all issues to cope with the high unemployment.

Supporting indicators for our assumptions:

Kraft Foods Inc. said that its second quarter profit rose 13 percent from last year. However, quarterly revenues came in positive but lower than forecast, and the company trimmed its full year revenue growth projections.

Healthcare provider stocks are posting some of today’s steepest losses, resulting in a 2.4 percent drop by the Morgan Stanley Healthcare Provider Index.

Look alone at Fridays trend of the major indexes and this just shows on the short term what to be expected long term.

The smart money is always ahead, and we put your right at par when you learn how to make money when markets go up, down or sideways.

NeversLossTrading is a premier education institute focusing to teach small group of investors how they can leverage and hedge their assets, in each of their accounts: 401(k), IRA, Custodian, Personal. Due to working with small groups only the best to get in touch with them is:

Thursday, August 5, 2010

Stock Markets: Are We Getting Into A Downtrend?

We are facing a time of an growing economy and continues high unemployment rates. There are many indicators speaking for a longer term growth with sharp market corrections. See our arguments.

Before the start of trading this morning, the Labor Department reported that initial jobless claims rose to 479,000 in the week ended July 31st from the previous week's revised figured of 460,000.

Is that really a surprise?

As often reported prior, the US for the first time is faced with a continues high unemployment level, as most European countries are used to since 30 years.

The market sure reacted negative and all kind of little explanations for a big structural problem were found: GM shutdowns (as if they were not there last year)

Our interpretation: We will have consumers who can spend, because they have a job and others who cannot, because they do not have a job.

Look at the retail reports from morning: A number of key chain stores reporting comparable July store sales. BJ's Wholesale (BJ) reported that its July comps rose by 6 percent, Nordstrom (JWN) said its sales increased by 7.6 percent, Kohl's (KOHL) sales advanced by 7.1 percent and sales by Macy's (M) jumped by 11 percent.

Now a key economic indicator: Freight & Transportation and Logistics Services company Con-way Inc. (CNW) posted second-quarter net income that was nearly 24 percent higher compared to the same period last year but still missed projections.

Let us puzzle it together:

“We are facing a period of economic growth where unemployment continues as an unresolved issue: American Companies got used to work with less people and will not rehire proportionate, even though they grow.”

Some more economic facts:

Yesterday, ISM revealed that its non-manufacturing index rose to 54.3 in July from 53.8 in June, with a reading above 50 indicating continued growth in the service sector. Economists had been expecting the index to edge down to a reading of 53.0.

In earnings news, PulteGroup Inc. (PHM) reported second-quarter net income of $0.20 per share, while analysts expected the company to report a loss of $0.01 per share. Total revenues for the quarter surged up to $1.31 billion from $678.58 million in the prior year quarter.

Media and entertainment giant Time Warner Inc. (TWX) said its second-quarter earnings rose to $0.49 per share, topping forecasts for $0.45 per share for the period. Revenues for the quarter grew 8 percent to $6.4 billion, while analysts expected revenues of $6.20 billion.

Additionally, Japanese automaker Toyota Motor Corp. (TM) said it swung to a profit in the first quarter compared to a loss in t he same period last year, helped by 27 percent revenue growth on the strength of Asian sales and demand-stimulus programs in Japan.

So what will all this mean for the Stock Market Investor:

We assume that we continue on a bullish sentiment with sharp negative pullbacks. Our outlook even goes for the next 5-10 years. Why? It will take that long for the government to deal with the restructuring of the taxation system to cope with long term unemployment, health care and social benefits for people who cannot find a job. Each time such news will hit the market it will take away quick from the levels that will be build by continues rising corporate earnings and growth.

For the investor it means to learn how to trade the market in all directions and how to hedge assets besides using a stop loss. teaches small groups up to 15 how to build and secure a long term portfolio of 401(k), IRA, Personal, Custodian accounts. One of their quotes: “People think that they cannot hedge (secure) their 401(k) investment because they have to stick to the investment vehicles of the plan provider. The plan is sure what the plan is and we will not change it, but add additional instruments that will make your investments long term grow and protect against sharp declines.”

Wednesday, August 4, 2010

Is Day Trading The Way To Make Money In The Stock Market?

Call your broker and tell that you want to day trade- long (to the upside) and short(to the downside): putting the account to cash at the end of the day.

What will be the answer?

We often heard it: “Oh you want to take on some indefinite or infinite risk?”

Is that true?

Not at all. You take on the same or even less calculated risk than owning a stock. Socks can go to Zero: Check how many stocks actually traded to zero on May 6, 2010. Please check out what CNBC had to day:

One thing is for certain: “most people never been educated in how to trade the financial markets to offset a potential risk by applying an appropriate investment strategy. “A hammer in the hand of a little child can lead to unwanted bruises or damage, in the hand of an educated craftsman to outstanding results.” The difference in-between is education and practice.

Our days only about 2% of the population is educated to care about their own money. Most people believe they are better on leaving their financial future relying on a third person. A key argument we get told:”if your car needs to be fixed, what do you do? You bring it to a car repair service, specialized to get the job done for you.”

On the side of your money, if you doubled what you invested in the last 7 years then you are at a rate of 7% annual return. If your account does not show a doubling over 7 years you need to think what is going wrong and how you can benefit on your own within trading the markets and making constant income if the market goes up, down or sideways. is a premier institution to teach small groups of people (up to 15) to manage after 3 days their financial future.

Depending on the individual focus they target returns of 2-3% a day, week, month and give you easy to follow trade setups, indicators and a trading plans that helps to strive for the specific set goals.

Key to their education is that they commit that after 3 days you are ready to trade. Not only that you gone be ready to trade, you will leave, knowing how to leverage and hedge your assets. In addition they offer a member ship program where you can continuously, once a week get market feedback and all questions answered you still might have.

They offer small group classes only and rather call it a workshop than a class. When you leave you will have your computer setup with your trading platform ready to trade.

In our interview they said, lately they have more people coming with an interest in day trading. Surly NeverLossTrading has a specially designed program for day traders. The key obstacle for people to learn how to day trade is their inner voice, that is constantly telling: “day trading more risky.”

Why is this concern so dominant? We got taught that way through generations and now we believe this is true. The answer of NeverLossTrading is: “every trade carries a risk, but we want to bring it to a calculated risk reward, where people get taught where to enter, take profits and put their stops in case the trade reverses.

Everybody who goes through their classes feels confident and prepared for the financial markets after.

If you still think that day trading is dangerous, you might want to read the following article originally published by Bloomberg on Goldman Sachs, who made record wins in the year where Bear Sterns and Leman Brother went out of business – and where did those profits come from: “day trading.” Hence, there must be something about day trading, which people our days shall learn to care about their financial future. Please check the following link for the original article.


Goldman Sachs $100 Million Trading Days Reach Record (Update3)

By Christine Harper - August 5, 2009 12:13 EDT

Aug. 5 (Bloomberg) -- Goldman Sachs Group Inc. made more than $100 million in trading revenue on a record 46 separate days during the second quarter, or 71 percent of the time, breaking the previous high of 34 days in the prior three months.

Trading losses occurred on two days during April, May and June, down from eight in the first quarter, the New York-based bank said today in a filing with the U.S. Securities and Exchange Commission. The company made at least $50 million on 58 of the 65 trading days in the period, or 89 percent of the time.

Goldman Sachs, which was the biggest U.S. securities firm before converting to a bank last year, posted the biggest profit in its history during the second quarter as revenue from trading and equity underwriting reached all-time highs. The company, which has returned $10 billion to the U.S. Treasury and paid $1.42 billion in dividends and to cancel warrants, also made its largest market bets during the period.

“It’s very counterintuitive to think that they’d be able to generate this much profit and this much revenue in the middle of an ongoing recession,” said William Cohan, a former banker at JPMorgan Chase & Co. and Lazard Ltd. and author of “House of Cards” about the collapse of Bear Stearns Cos. “But the fact that so many of their competitors are out of business or severely wounded has put them in a very strong position.”

Trading Days

In fiscal year 2008, the firm had 90 days in which traders made more than $100 million, compared with 88 in 2007. In fiscal 2006, the figure was 49 days, up from 18 in 2005 and 14 in 2004. Goldman Sachs changed its fiscal year in 2009 to end in December instead of November.

Goldman Sachs’s trading results reflected the firm’s willingness to take on more risk during the period. Value-at- risk, an estimate of how much the firm could lose in any given day, rose to an average of $245 million in the second quarter from $240 million in the first quarter and $184 million in the second quarter of 2008. Most of the increase in the second quarter came from bets on equities, the company said.

“They take risks for their clients and for themselves and they’ve figured out a way in this market, with less competition bidding for these things, to make money,” Cohan said.

Trading and principal investments accounted for 78 percent of the bank’s revenue in the second quarter of 2009, up from 59 percent in the second quarter of 2008. Net interest income, the difference between the interest the firm pays and what it charges, climbed 60 percent from the second quarter of 2008 as the company’s interest expense dropped 83 percent.

FDIC Backing

Banks such as Goldman Sachs are benefiting from lower borrowing costs after the Federal Deposit Insurance Corp. in October started guaranteeing bank debt issues that mature within three years. Goldman Sachs said in today’s filing it had $25.1 billion of debt guaranteed by the FDIC under the agency’s Temporary Liquidity Guarantee Program. The bank sold about $30 billion of the FDIC-backed securities between November and March, according to company filings.

Today’s filing showed the weighted average interest rate paid by Goldman Sachs on its unsecured short-term borrowings dropped to 1.70 percent in June from 2.14 percent in March and from 3.37 percent in November.

Goldman Sachs is cooperating with government agencies and regulators making inquiries into its compensation practices, according to the filing. The board is reviewing letters from shareholders demanding an investigation of pay practices and recovery of any “excessive compensation,” the filing showed.

The company said it received inquiries from regulators about credit derivative instruments, and is cooperating. Goldman Sachs settled a lawsuit related to Enron Corp. on Aug. 3 and is waiting court approval. The filing didn’t provide details on the case or identify any of the regulators.

To contact the reporter on this story: Christine Harper in New York at

Monday, August 2, 2010

Stock Market: Bullish Day after Economic News – What will happen tomorrow?

The Stock Markets went sharply higher today. Checking Index Futures, this move was already indicated by the opening on 6 p.m. EST yesterday and confirmed with the opening of the European session at 3 a.m. EST.
Then came the economic news with a better than expected reading on national manufacturing activity and all Indexes: DOW, S&P, Nasdaq, Russell, doubled up and got into positive annual territory. Here are the news as they came in:

The ISM said its manufacturing index fell to a reading of 55.5 in July from 56.2 in June, with a reading above 50 indicating continued growth in the sector. Economists had expected the index to show a more notable decrease to a reading of 54.2. When you check out publication and how we followed the earnings reports of major US companies, we saw that coming and by kept our bullish sentiment.

Separately, the Commerce Department said that construction spending edged up 0.1 percent to an annual rate of $836.0 billion in June from the revised May estimate of $834.8 billion. The increase came as a surprise to economists, who had expected spending to decrease by 0.8 percent.

This coupled with good earnings gives a positive, or bullish sentiment.

Let us be aware, the battle for the bulls is not won. This week the bulls will get tested by reports of the employment situation, outlay of personal income and consumer spending might challenge the overall bull position and we might see some downs spikes while we keep our overall bullish sentiment.

If you want to see a clear outlay of this week’s economic news, check our link: ‘

Earnings News with Focus on International Banking and Healthcare:

HSBC reported a six-month profit of $0.38 per share, well above the $0.21 per share reported for the same period last year. The firm benefited from a decline in loan impairments, as charges fell to $7.52 billion compared to $13.93 billion recorded a year earlier.

French banking giant BNP Paribas reported a 31 percent increase in its second quarter profits on a near 12 percent increase in revenues, as its cost of risk declined about 54 percent from last year.

Humana Inc.'s second-quarter net income grew to $2.00 per share, firmly topping expectations for $1.67 per share. Total revenues for the second quarter increased 9.5 percent to $8.65 billion, while analysts estimated revenues of $8.61 billion for the quarter.

Sunday, August 1, 2010

Stock Market News for the Week of August 2, 2010

The week ahead takes the consumers their spending and the employment situation in focus.

We seen great earnings reports from major companies, which gives us a sound basis for future investments. Unfortunately there is no light at the end of the tunnel for the employment situation or better to say: unemployment situation. Everybody in this respect looks to the government, but there we sure do not find the source of the issue: Companies learned to work more efficient and do not hire back the same amount of people and still get the job done.

Now we need to see this week how potent the remaining consumers are and how their spending will make the economy float above or below waters.

Here are the key news events to consider the week of August 2: