The secret of Platinum $PPLT



According to a post [3 ways Obama could bypass Congress] by Jack M. Balkin, Professor of Constitutional Law at Yale Law School, in the event that the US Congress doesn´t reach an agreement to raise the debt ceiling… Here´s one of the alternatives:



Suppose, however, that the tea party gets its way, and the debt ceiling is not increased. What are President Barack Obama’s options?

We are having a debt-ceiling crisis because Congress has given the president contradictory commands; it has ordered the president to spend money, and it has forbidden him to borrow enough money to obey its orders.

Are there other ways for the president to raise money besides borrowing? Sovereign governments such as the United States can print new money. However, there’s a statutory limit to the amount of paper currency that can be in circulation at any one time.1

Ironically, there’s no similar limit on the amount of coinage. A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds.

(the bold is mine)


I´ll keep $PPLT at hand.





Playing field $SPY $SPX


I have marked some key pivots (+/- 7 points) that might offer some guidance in the following days or weeks. 


1313 – above, SPX could possibly resume the rally

1291 – first mayor test area

1261 – bull market in danger

1240 – a sustained move, could propel into bear market 


Next week tape ($SPX, $SPY)



Next week includes another batch of crucial earnings. The reporting season has been another strong one, but forward guidance has been a mixed affair. Stocks generally have trended higher, but the debt-ceiling debate will continue to roil.



Some key earnings coming from Broadcom, Netflix and Texas Instruments. Also, some regional economic news: the Texas Manufacturing Outlook Survey for July.


S&P/Case-Shiller will tell us that home prices are still lousy. Johnson Redbook’s weekly retail sales also due. And the Richmond Fed tells us what business is like in its area. New home sales and Consumer Confidence data also due out. Cheery and chipper? Maybe not so much. More big earnings from 3M, Amazon, U.S. Steel and Ford. Others reporting include Electronic Arts, Hershey, Occidental Petroleum, Valero, Biogen Idec, Novellus, Fiserv, Juniper, Ford and UPS.


Earnings start to taper a touch, with Akamai, Cabot Oil & Gas, Visa, Aetna, Dow Chemical, Nasdaq, Ryder, Boeing and Southern Co. reporting. Chicago Fed tells us what manufacturing is like in the heartland. The government reports on Durable Goods orders. Energy mandarins tell us how much crude and gasoline we have on hand.


Weekly (weakly?) initial jobless claims! July’s jobs report (Aug. 5) will start to come into focus. The pending home sales index and a Kansas City Fed manufacturing survey also on the docket. Earnings? Still some big names in the chute, including Bristol-Myers Squibb, Colgate Palmolive, Automatic Data Proc., CME Group, ExxonMobil, Chesapeake Energy, Met Life, Starbucks, DuPont, Sprint Nextel, Kellogg, Motorola Mobility, KLA-Tencor.


Get quieter (summer!) on Friday. Chevron, Amgen, Merck, Weyerhaueser, Newmont Mining and Aon report. No major economic news on the docket.


Vía WSJ Marketbeat

update on Ags ($CORN, $DBA) – Back to where we started



Back to where we started a few days ago.

Both show a similar structure: they have retraced pretty all of the previous week advanced and are both quite oversold in the short term.

CORN: found support in the $44-$44.20 area, which happens to be confluence of both 20 and 50 EMA, AND trendline support (previously resistance) – Friday´s advance was on dismal volume.

DBA: Retracement “To the tick” back to 1st and 2nd Resiatance areas – found support on the 50% fib retracement levele on the 60 min. chart, which remains somewhat constructive. MId-term, I´m leaning to the upside, however, headlines coming from the debt ceiling negotiations will be the main event affecting the market and how news gets digested will be paramount to the move.

Futures have opened almost 1% in the red.



Back To The Future & Tesla ($TSLA)



Following my weekend exploring car-related news and films, a clear memory of Back To The Future comes alive when I see the Tesla Roadster and read about the upcoming Model S Sedan. Founded by Elon Musk, one of the original members of the pay pal mafia, the company IPO’ed in July, 2010 and if provides “spice” into the electric car equaiation: aka this is not your PRIUS experience.




According to the company profile (via Marketwach)

It’s flagship product, The Tesla S, accelerates from zero to 60 miles per hour in 3.7 seconds… Using a 240 volt, 40 amp outlet that is available in many homes in the United States for electric appliances, charging the Tesla Roadster battery pack to full capacity would take approximately 7 hours, which could be reduced to 4.5 hours with a professionally installed 70 amp circuit. The Company plans to continue to develop its electric powertrain technology and introduce additional electric vehicles, such as its planned Model S sedan. It is designing the Model S to be a four door, five passenger premium sedan that offers exceptional performance, functionality and attractive styling with zero tailpipe emissions at a compelling cost of ownership… It plans to be a global manufacturer and direct seller of electric vehicles and electric vehicle technologies. It competes in the premium sport vehicle market against selected premium roadsters and coupes.

Although I haven’t done an in-depth analysis, it is important to note that the company relies heavily in government subsidies to fuel its growth and is not yet profitable. Regardless, my view tend to focus on chart analysis, howeever it is important to have a peak at some key issues of the company, in my search for longer term swing positions -whenever possible.

According to finviz, almost 50% of the company is owned by institutions and has a high short interest (10% in crease the last week) provided it will take 10 days for all the sellers to cover their short positions, if the stock keeps on rallying -it ended +6.20% this week, and +37% this year). Base for last week rally was the disclosure of a $100 million deal with Toyota Motor Co. to supply powertrain systems for the Japanese auto maker’s upcoming electric RAV4 sport-utility vehicles.







Dough’Not, the Ducht-based website has published thousands of outstanding original films – It its worth taking a look at them if you want to enjoy some phenomenal pieces.

“VISITING: KOENIGSEGG” is 3 minute duration short, beautifully depicting the inners of the unique swedish supercar crafter, which managed to introduce the CCXR, the first supercar able to run on E85 bio fuel. Their latest creation, the Agera, follows its footsteps.





Trading at the speed of light


Dutch tv network VPRO, airs a series of documentaries covering topics that involve our current financial and economical “industry” world-wide.In one episode, directed by Marije Meerman, “Quants” talk about the way they think and how their way of thinking can determine the direction of our economy.

This 50 minute long document, contains 6 custom short abstract animations we did, to “explain” the complexity, randomness, speed and danger of the economical world we live in.

The documentary portraits the world of quantitative analysts and porgrammers who’s involvement in financial markets have been growing steadly and most importantly over the last 20+ years.