RF's Financial News

RF's Financial News

Sunday, June 29, 2014

This Week in Barrons - 6-29-2014

This Week in Barrons – 6-29-2014

Who let All these Sheeple into My room?

















You’ve heard the old adage: When a man with money meets a man with experience – the man with money ends up with experience – and the man with experience ends up with all the money.  The bad news is that first quarter GDP estimates (that were for +0.1% growth) were revised downward to a NEGATIVE 2.9% this week.  Yes, the U.S. economy SHRANK by 3% in the first quarter of 2014.  And this week, when the President addressed ‘The Sheeple’ (the J.Q. Publics of the world) – he blamed the ‘slight miss’ in the GDP number on – wait for it – ‘The Weather.’  Revisions of this magnitude are a way of ‘publishing reality’ after feeding ‘The Sheeple’ a load a crap.  This constant ‘blame it on the weather’ and the ‘data is noisy’ has caused me to re-examine my perspective on the economy.

-       Do I think the market is just a ‘Bit Frothy’, and I a little worried about a major correction? If so – then buy some protective PUT options and go on with my life.
-       Do I think that things are a little more severe, but not yet in the ‘Epic Chance of a Major Meltdown’ camp?  If so – then I should just cut my debt levels, save as much money as I can, and ‘ride it out’.
-       However, If I think that the ‘Big One’ is coming.  That is to say: I have examined the real numbers, the frauds, the manipulations, the market distortions, the debt levels, and have decided that a massive global currency and economic crash is pretty much ‘In the Cards’.  Then I asked myself: What should I invest in that will get me through those times?

We all need to take the time to try and decide for ourselves just where we sit concerning ‘the scope’ of our economic situation, but if I'm right:
-       There is going to be a currency crash.
-       The world will shun the dollar to the point it loses its reserve currency status.
-       And when the world no longer needs U.S. dollars to buy energy and to perform international trade, we (the U.S.) are in a heap of trouble.

Remember, hundreds of nations around the globe have tried to print their way out of trouble and into prosperity.  It has never worked.  So, why has the U.S. been able to print so much money and still ‘appear’ to be limping along?  Well, if you're a solitary country – not part of the global reserve standard – and you print money:
A.    You will distort your internal country’s values – which will cause inflation.
B.    You will be unable to value your exports efficiently – which will cause bondholders to go crazy (knowing more inflation is coming).
C.   You will shut down sovereign trade – which will cause you to ‘rinse ‘n repeat’ until your nation goes bankrupt.

The U.S. has held a very interesting position for the past 60 years.  Its currency has been ‘in demand’ globally due to its status as the world’s reserve currency.  Why is that important?  A global reserve currency is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves, and is the currency that is most commonly used in international transactions.  But in addition to that, the U.S. has held an even higher position due to a deal it made many years ago with the Saudi's and the OPEC nations.  The ‘petro-dollar’ deal guaranteed that oil from the Middle East would ONLY be sold on the world stage in U.S. dollars.

Every nation needs oil.  So when you have a ‘sweetheart deal’ that requires every nation to first obtain ‘U.S. dollars’ via foreign exchanges to buying oil – you have an ‘artificial’ demand for U.S. dollars that would NOT be there without the existing petro-dollar setup.  Therefore, the U.S. has been able to print dollars and export our ‘inflation’ around the world.  And the world has been forced to use our dollars if they want energy.

Well, ‘Times – They are a Changin’.  The world is tired of our constant printing and their austerity suffering, while we live ‘high on the hog’ printing dollars and running up trillions of dollars in debt.  The world is tired of being dollar slaves and yearns for currency freedom.  That means that one day (fairly soon) we’re going to see the Saudi's and OPEC openly declare to sell oil for alternative currencies such as the Yuan, Ruble, Euro, Peso, gold and silver.  The very minute that news hits the wires – no one will need to hold U.S. dollars any more.  The world will instantly flood the system with U.S. dollars, the dollar index will decline, and we will then become just another Argentina & Zimbabwe.

So, what do you do about it?  And perhaps more frightening is: how bad could it really get?  If you’re a hard-working individual, with a good to excellent middle class income and some ‘savings’ – then things are going to get ‘exponentially’ tougher.  I would expect gold first and silver second to increase in value enough to offset the crush of the dollar devaluation.  Last week I mentioned ‘good real estate’ and I should have qualified what I mean by ‘good’.   While it’s generally a great idea having a property and letting someone else pay for it – unfortunately in difficult financial times your ‘renters’ will often NOT be able to continue paying – and it’s incredibly difficult to evict tenants when they stop paying.

The two forms of real estate that I've found to be bullet proof are: (a) land that is rented by the U.S. government, and (b) land that is leased to farmers.  So, if we don’t collapse into total anarchy, and the basics of the infrastructure continue to function – then having a good stock of PHYSICAL gold and silver coins will help you immensely.  They've printed $29 Trillion to buy stocks, thus saving the rich from the embarrassment of losing money.  This time however, it's the printing that's CAUSING the problem.  When the collapse hits, printing more money won't fix it – only time and working through the fundamentals of a new economy will supply the solution.  If you believe that a NEGATIVE 2.9% GDP in the first quarter of 2014 was caused by ‘bad weather’, and there is (according to Ms. Yellen) ‘no inflation – just noisy data’ – then completely disregard all that I’ve said above – and by the way – ‘I have some land in Florida (and a bridge in New York) that I’d like to sell you.’


The Market:

Before I get into the market, I would strongly recommend that everyone sign up and read Michael Williams’ blog on a daily basis: http://marketpreview.silexx.com/.  How Michael can turn out (day after day) high quality information like this is just beyond me – congrats to him.

Last Sunday we suggested that the market may see a bit of red as they work off the previous week’s pop higher.  Well, that's exactly what happened – as the market sank on the week.

Factually:
-       Mortgage apps fell 1% last week, on the heels of the previous week’s 9% drop.
-       First quarter GDP came in at NEGATIVE 2.9%, the worst first quarter since 1958. Remember when I was skeptical of the Fed's cutting QE because for the first time in their history they'd be cutting a stimulus program in the face of weakness. Well, you can't get much weaker than -3%.  The good news is, with the horrific GDP data, there’s virtually no chance that the FED will raise rates this year.
-       President Obama is pushing for more sanctions against Russia.
-       Monsanto’s stock jumped $7 (not because of earnings, new R&D, or expansion) – but because they’re using ½ of their total market cap to BUY BACK their own stock.
-       In Venezuela the electricity has been drastically shut down.
-       Argentina has all but defaulted, and Putin is scheduled to go there in July.  Yet another potential member of the ‘Dump the U.S. Dollar’ Club.
-       Iraq and the Ukraine are still – well – Iraq and the Ukraine.

On Monday this week, we mark the end of the 2nd quarter of 2014.  I would expect some window dressing – meaning brokers buying the stocks that did well and selling the stocks that didn’t.  On Tuesday and Wednesday we should see the effects of some 'new money’ coming into stocks.  So I think we trade sideways to higher into Thursday’s initial jobless claims and non-farm payrolls reports.

Thus far they've been able to engineer a magical levitation of the markets in the face of everything that's going on.  I expect this to continue on into the mid-term elections in November – with a few 2% pullbacks sprinkled in for effect.  But remember that anything could be that proverbial ‘last snowflake’ that lands and causes the avalanche.  Just because they want it up, doesn't preclude the fact that something massive can go wrong.


Tips:

I’m getting better at announcing trades, but I really have a ways to go.  I make (roughly) 20 trades a day, and announcing them via Twitter and StockTwits is tougher than what I thought.  But, I am getting better. 

When I talk of ‘stock manipulation’ – there was nothing finer than the manipulation of MNKD stock following their receipt of FDA approval on Friday.  The FDA announced their approval with a ‘badly worded’ release at 3:28 pm on Friday.  With the wording of the release – the stock plunged from $10.50 to $8.20 in virtually 5 minutes – on volume (roughly) equivalent to Apple’s entire trading day!  Following that initial move downward, the stock miraculously moved back to $10 and then to $11 (with a re-worded FDA message) in after-hours action.  Allow me put forth a potential scenario: 
-       If you are the the CEO of MNKD, you need to make sure that your stock does NOT go ‘thru the roof’ upon FDA approval.  [Estimates were for MNKD to rise to between $16 (a 60% gain) to $48 (a 400% gain) per share upon FDA approval – and then result in a huge ‘sell the news’ collapse directly following the rise.]
-       Gains to these levels (if they held) would make partnerships and merger opportunities difficult, and stock ensuing collapse would make those same discussions problematic. 
-       At the same time, you need your stock to increase because your balance sheet is becoming ‘squeezes’ – and you do have ‘short-term cash’ obligations on the horizon. 
-       Now, hypothetically you could ‘work with’ the FDA on wording of their original announcement (in such a way) that would allow you to initiate a SALE of your own stock – starting the dominos to fall.
-       And once your stock hit a pre-arranged level ($8.20 for example), you again come in with a hint of a re-worded announcement and cash to buy the stock (at these reduced levels) – and thereby trigger the ensuing 25% increase from $8.20 to $10 per share before the close.
-       This would have limited your upside (and not priced you out of the partnership – merger market), and would have garnered you the quick $32M (16M shares * $2 per share increase from $8 to $10/share) that you (MNKD) needed for your cash obligations going forward.
-       BRILLIANT – simply a work of art!

This week I’m looking to SELL premium PCS (Put Credit Spread) on the following:
-       COST – weekly & daily squeeze = Directional, October $115 calls
-       AAPL – 15 min & 4 hr squeeze = Directional, October $85 calls
-       FEYE – hourly squeeze = Directional, July $37 calls, AND July (monthly) PCS $37 / 35 = $0.25/share
-       BWLD – weekly squeeze = July (monthly) PCS $150 / $140 = $0.50/share
-       CMG – hourly squeeze = July (weekly) PCS $577.50 / $572.50 = $0.52/share
-       GOOGL – hourly squeeze = July (weekly) PCS $577.50 / 572.50 = $0.65/share OR $575 / $570 = $0.45 OR $572.50 / $567.50 = $0.30/share
-       PCLN – 4 hour squeeze = July (weekly) PCS $1170 / 1162.50 = $0.65/share OR $1167.50 / 1160 = $0.57/share
-       TSLA – hourly squeeze = July (weekly) PCS $227.5 / 222.5 = $0.40/share
-       VIPS – 4 hour squeeze = July (weekly) PCS $180.00 / $175.00 = $0.40/share 

Reviewing our Past Week’s Performance:
-       Our directional Calls and our PCS (Put Credit Spreads) did very well indeed for us last week – and continue our assult on a 20% return à FOR THE MONTH!
-       Mannkind Pharmaceutical (MNKD) – will be interesting on Monday.  The Options market is telling us that it should settle around $14 per share. 
-       Durata Therapeutics (DRTX) – closed at $17.26 on Friday – allowing us to pocket the entire premium that we sold.  We’re continuing to hold onto our position a little while longer.
-       My energy portfolio (comprised mostly of small energy companies) continues to improve nicely (see below):

My current short-term holds (returning > 15.7% for June) are:
-       **DRTX (Drug) – in @ $13.67 – (currently $17.26),      27% increase
-       **MNKD – in @ $6.35 – (currently $11.00),                    73% increase
o   (Continued Income Plays here…)
-       AKRX – In @ $30.96 – (currently $31.71),                      2% increase / 3 days
-       AMKR (Energy) – In @ $9.43 (currently $10.88)            15% increase / mo.
-       ASX (Tech) – in @ $5.81 (currently $6.51),                     12% increase / mo.
-       BAS (Energy) – in @ $25.94 (currently $28.32),            9% increase / wk.
-       ETP (Energy) – in @ $57.60 (currently $57.61),                        0% increase / 2 days
-       FET (Energy) – in @ $30.53 (currently $36.26),            19% increase / mo.
-       GTAT (Tech) – in @ $18.09 (currently $18.2),                1% increase / 2 days
-       HK (Energy) – in @ $5.25 – (currently $7.14),               36% increase / mo.
-       KOG (Energy) – in @ $12.98 – (currently $14.45),        11% increase / 2-wk.
-       LNG (Energy) – in @ $57.40 – (currently $69.95),        22% increase / mo.
-       PQ (Energy) – in @ $5.87 – (currently $7.50),               28% increase / mo.
-       **PVA (Energy) – in @ $14.57 – (currently $16.71),      15% increase / mo.
-       **RFMD (Tech) – in @ $7.96 – (currently $9.36),          18% increase / mo.
-       SPIL (Tech) – in @ 7.20 – (currently $8.12),                  12% increase / mo.
-       UIHC (Insurance) – in @ $16.81 – (currently $16.61),             1% decrease / mo.
-       VTNR (Energy) – in @ 7.35 – (currently $9.95),             35% increase / mo.
-       SIL (Silver) – in at 24.51 - (currently 14.02) – no stop,
-       GLD (ETF for Gold) – in at 158.28, (currently 126.75) – no stop ($1,316 per physical ounce), AND
-       SLV (ETF for Silver) – in at 28.3 (currently 20.16) – no stop ($20.96 per physical ounce).

To follow me on Twitter and get my daily thoughts and trades – my handle is: taylorpamm. 

Please be safe out there!

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Sunday, June 22, 2014

This Week in Barrons - 6-22-2014

This Week in Barrons – 6-22-2014

See No Evil, Hear No Evil, Speak No Evil…

  











On Wednesday we were honored to listen to Ms. Janet Yellen respond to questions by the economic press.  Some of the questions were clearly scrubbed and purified, but others that should have elicited a good response were replied to with grotesque fantasy.
Ms. Yellen clearly has not heard or seen any of the evils of our economy, and therefore did not speak of them.

Prior to the Internet, most people thought that the Federal Reserve was a part of the Federal Government, and that its chairman and boards were government employees.  It proved to be quite a wake up call to find out that they were no more ‘Federal’ than ‘Federal Express’.  It surprised many to find out that the FED is a private group of ‘unelected’ bankers – placed into power by what could only be called a ‘midnight political coup’ over 100 years ago.  After Wednesday’s remarks, I’m going to have trouble believing anything (either spoken or un-spoken) that comes out of our FED.

First:               Ms. Yellen actually said that she did NOT see anything ‘frothy or bubble-like’ in the equity markets.  Really Janet?  Last year the markets rose 35% while most of the economic reports were trending downward.  Janet, if NOT ‘frothy or bubble-like’ – then just how would you characterize a 35% market run-up during a weak economic period?  New-normal?  The markets have made 20 new, all-time highs this year – and our first quarter GDP came in as a NEGATIVE one percent.  So – if I’m understanding you correctly:  You don’t see anything ‘frothy or bubble-like’ after hitting 20 new, all-time highs during a period when our nations GDP was NEGATIVE, and AFTER experiencing a 35% market rocket-ride last year?  Really Jan?

Second:         Ms. Yellen refused to acknowledge inflation figures – published by her own government – that showed that inflation was beginning to over-heat.  Her response was: “The data was ‘noisy’.”  Really Janet?  Just what pieces of data are ‘noisy’ – the FACT that chicken, pork, beef and electricity have hit all-time high prices?  Oh we’re blaming that on the weather.  And on what do we blame oil spiking to levels that normally cause a retrenchment in consumer spending – some ‘noise’ out of the Middle-East?   So if I understand Ms. Yellen correctly: the FED says that their inflation target is 2% - the Government’s own reports show that we’re above that target already – and Ms. Yellen’s response was that the ‘data was noisy’ and that “inflation is subdued and won't hit their targets until late 2015”.   Really Jan?

So Ms. Yellen refuses to see ‘absurd’ run-ups in the equity markets.  Ms. Yellen refuses to hear the facts concerning inflation that her own government is telling her.  And Ms. Yellen refuses to speak on anything that would rock the boat.  Well, to quote Jim Carey: “ALLLLL-Righty Then!”

Factually, the Financial Times this week did their own investigation and found that the global Central Banks own $29 Trillion in stocks.  The entire globe is awash in a Central Bank experiment that has NEVER been tried before.  Never before has this amount of printed (fake) money been stuffed into our global economies.   This week:
-       Our FED lowered it’s 2014 growth forecast for the U.S. economy to 2.3%,
-       Student loans, car loans, and credit card debt increased by $26.8B in April – reaching an all-time high of $3.2 Trillion,
-       U.S. consumer debt reached a record 25% of disposable income, and
-       The 2013 U.S. consumer saved 5.5% of their income, but the 2014 consumer is back down to under a 4% savings rate.

I’m betting that (over the next 2 months) Saudi Arabia announces that it will accept payment for their oil in virtually any currency including: the Yuan, the Euro, Gold, and Rubles.  When that happens the entire pretense of the U.S. dollar is over.  The "Petro-Dollar" deal we made with the Saudis (where all of their oil would be priced in dollars, in exchange for U.S. military protection) would unofficially end.  And if the world dumps the dollar, then the U.S. loses its global reserve status.  Did ANY reporter ask Ms. Yellen about that?  Not a one.  All anyone cares about (it seems) is keeping the punch bowl full, and when/if the FED is going to raise rates.

The general thinking among economists is that the FED can push this market until either we implode with hyper inflation, OR they yank the punch bowl away and we enter a recession / depression.  But allow me to suggest a 3rd alternative.  What if the rest of the world decides our fate for us by abandoning the U.S. dollar?  When that happens, be ready for a significant devaluation of our currency.  There’s a reason why people are buying ‘hard assets’ at significantly above market prices.  The reason is – going forward – physical assets are going to be worth considerably more than the dollars that were used to purchase them. 

The entire global economic situation was built and based upon the U.S. dollar being king.  But trying to amass as many U.S. dollars as possible – just to see them devalued by another 40% - is a loosing effort.  As you all know, I'm a firm believer in Gold, Silver and real estate.  Unfortunately rental properties are only as good as the renter’s ability to pay.  Let’s talk next week on alternative investment options that you can expense or depreciate – and that APPRECIATE in value going forward.
















The Market:

Oh look – another all-time high in the markets.  Yawn.  All-time highs have become as commonplace as weeds in a garden.  But that's to be expected when:
-       Central Banksters print money out of thin air, and then use that money to purchase over $29 Trillion in stocks, and when
-       Hundreds of companies take their profits and (instead of using them to hire and expand) use them to buy back their own stock – simply to inflate their share prices.

We are experiencing the greatest disconnect in history between global stock markets (fueled by free money from our central banksters) and reality.  Factually, we are overdue (timewise) for a pullback.  But – the PUT/CALL ratio is telling us something different.  The PUT/CALL ratio (the number of PUT options outstanding – divided by the number of CALL options outstanding) (a) on the S&P is 1.76, (b) on the NASDAQ is 1.39, and (c) on the Russell is 1.38.  All of this is telling us that the world is buying a lot more PUTS than CALLS.  On my yardstick, anything greater than 1.30 should be viewed as extreme PUT buying, and you can start looking for a potential bottom.  And anything at 0.60 and below can be viewed as extreme CALL buying, and should be viewed as if there is a potential top in place.  So while you may think that a pullback is in the cards (and potentially we could experience a small one mid-next week) – the numbers are telling us that there is more upside to this current market trend.

Also, when you review the major market indices against their various technical patterns:
-       the S&P’s are in the fifth week of their 8-week up-trend,
-       the DOW could be quite volatile this coming week,
-       the Nasdaq is in the third week of an 8-week up-trend, and
-       the Russell (small cap index) is in the first week of an 8-week up-trend.

So I’m looking for a renewed upside bias for this coming week.


Tips:

I’ve honestly been trying to announce my trades via Twitter and StockTwits, but I failed miserably when it came to Quadruple Witching Friday.  I will improve as the weeks go on – so just bear with me.  If you wish to ‘follow me’, my nickname on both of these sites is: ‘taylorpamm’.

In terms of how I purchase options – I use the 70 / 30 rule.  In terms of buying directional options, under normal conditions (low implied volatility) my bias is to: (a) invest 70% of my position into Delta 70’s (In The Money = ITM) options, and (b) invest the remaining 30% of the position into Delta 30’s (slightly Out of The Money = OTM) options. 

I’m currently looking at the following plays:
-       U.S. Steel (X) – U.S. Steel is 2 bars into a weekly squeeze with an upside bias – looking at the $25 – July monthly call options for around $1.14
-       FireEye (FEYE) – I’m using their 2 and 3% weekly premiums as a nice ‘covered call’ strategy – i.e. either Write Call Credit Spreads / or purchase the stock and write Covered Calls against the stock.
-       J.P. Morgan (JPM) – JPM just came out of a pinning move on Quadruple Witching Friday – and is ready to resume it’s upward move toward $61.45 – looking at $55 – July monthly call options for $2.69.
-       XLNX – is in the 3rd day of an 8-Day Squeeze.  Looking at the $45 – July monthly call options for around $2.71.
-       Solar Power (SPWR) – is in the 1st week of an 8-Week Squeeze.  Looking at the $39 – June weekly call option for around $1.81.

Reviewing our Past Week’s Performance:
-       J.P. Morgan pinned nicely for us @ $57.50 – creating a very nice upside indeed.  We’re currently in JPM - $55 – July monthly calls – looking for a pop higher early this week.
-       Mannkind Pharmaceutical (MNKD) – We’re still in MNKD and continue the 40% covered call strategy.  We’re coming up on FDA approval date – so it wouldn’t be uncommon to see a run up into FDA approval – a huge pop higher upon approval – and then a fall back to normal levels post-approval.  We’d obviously like to sell at the highs and will keep our finger close to the trigger on this one – as approval can come virtually any time between now and July 15th. 
-       Durata Therapeutics (DRTX) – closed in the mid-16’s on Friday – allowing us to pocket the entire premium that we sold on the $15 / $12.5 Put Credit Spreads.  We will potentially be scaling out of DRTX in the coming days/weeks.
-       My energy portfolio comprised mostly of small energy companies continues to do very nicely indeed (see below):

My current short-term holds are:
-       **DRTX (Drug) – in @ $13.67 – (currently $16.56),      22% increase
o   (Look for more Income Plays here…)
-       MNKD – in @ $6.35 – (currently $10.35),                       63% increase
o   (Continued Income Plays here…)
-       AMKR (Energy) – In @ $9.43 (currently $10.85)            15% increase / mo.
-       **ASX (Tech) – in @ $5.81 (currently $6.41),                 10% increase / mo.
-       FET (Energy) – in @ $30.53 (currently $36.15),            12% increase / mo.
-       FPP (Energy) – in @ $5.68 (currently $5.48),                 3% increase / 2-wk.
-       HK (Energy) – in @ $5.25 – (currently $6.99),               24% increase / mo.
-       KOG (Energy) – in @ $12.98 – (currently $14.51),        12% increase / wk.
-       LNG (Energy) – in @ $57.40 – (currently $68.54),        19% increase / mo.
-       NGLS (Energy) – in @ $64.47 – (currently $70.11),     4% increase / mo.
-       N.W.E. (Energy) – in @ $47.84 – (currently $50.99),    7% increase / 2 wk.
-       **NOG (Energy) – in @ $14.97 – (currently $17.10),    14% increase / 3 wk.
-       **PFIE (Energy) – in @ $3.97 – (currently $5.05),         27% decrease / mo.
-       PQ (Energy) – in @ $5.87 – (currently $7.15),               13% increase / mo.
-       **PVA (Energy) – in @ $14.57 – (currently $15.10),      6% increase / mo.
-       **RFMD (Tech) – in @ $7.96 – (currently $9.73),          22% increase / mo.
-       SPIL (Tech) – in @ 7.20 – (currently $8.11),                  12% increase / mo.
-       THRM (Trans) – in @ $41.42 – (currently $42.93),       4% increase / 3 wk.
-       **UIHC (Insurance) – in @ $16.81 – (currently $17.87),         6% increase / 3 wk.
-       VTNR (Energy) – in @ 7.35 – (currently $9.95),             35% increase / mo.
-       SIL (Silver) – in at 24.51 - (currently 13.79) – no stop,
-       GLD (ETF for Gold) – in at 158.28, (currently 126.65) – no stop ($1,314 per physical ounce), AND
-       SLV (ETF for Silver) – in at 28.3 (currently 20.04) – no stop ($20.90 per physical ounce).

To follow me on Twitter and get my daily thoughts and trades – my handle is: taylorpamm. 

Please be safe out there!

Disclaimer:
Expressed thoughts proffered within the BARRONS REPORT, a Private and free weekly economic newsletter, are those of noted entrepreneur, professor and author, R.F. Culbertson, contributing sources and those he interviews.  You can learn more and get your free subscription by visiting: <http://rfcfinancialnews.blogspot.com> .

Please write to Mr. Culbertson at: <rfc@culbertsons.com> to inform him of any reproductions, including when and where copy will be reproduced. You may use in complete form or, if quoting in brief, reference <rfcfinancialnews.blogspot.com>.

If you'd like to view RF's actual stock trades - and see more of his thoughts - please feel free to sign up as a Twitter follower -  "taylorpamm" is the handle.

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Views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest and is not in any way a testimony of, or associated with Mr. Culbertson's other firms or associations.  Mr. Culbertson and related parties are not registered and licensed brokers.  This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document.  Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each article.

Note: Joining BARRONS REPORT is not an offering for any investment. It represents only the opinions of RF Culbertson and Associates.

PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop.

All material presented herein is believed to be reliable but we cannot attest to its accuracy. Opinions expressed in these reports may change without prior notice. Culbertson and/or the staff may or may not have investments in any funds cited above.

Remember the Blog: <http://
rfcfinancialnews.blogspot.com/> 
Until next week – be safe.

R.F. Culbertson
<http://rfcfinancialnews.blogspot.com>