RF's Financial News

RF's Financial News

Sunday, June 14, 2015

This Week in Barrons - 6-14-2015

This Week in Barrons – 6-14-2015:

     














If you can’t believe in studio wrestling, what can you believe in?” … Zoog’esque


Thoughts:

Dear Ms. Yellen:

To quote Dusty Rhoades: “You don’t know what hard times are.  Hard times are when a man has worked at a job for 30 years, and they give him a watch, kick him in the butt and say ‘hey a computer took your place.’  Those are hard times.”   Dusty Rhoades (a studio wrestler) passed away this week, and took a piece of ‘Middle America’ with him.  I grew up watching Dusty Rhoades, Rick Flair and others wrestling on Saturday mornings.

About now you’re probably wondering what an ‘entertainer’ like Dusty Rhoades, and something as fake as the WWF (World Wrestling Federation) – have to do with anything surrounding our financial community.  Unfortunately we learned this week that almost three quarters of the earnings numbers we hear are fake – and NOT at all that entertaining.  Yes, the numbers that are being communicated to us by our banks and major corporations are as ‘fake’ as a $3 bill.  This week the AP released a study that compared the ‘real’, bottom-line profit figures in the S&P 500 companies that follow GAAP (Generally Accepted Accounting Principles) to the ‘adjusted profit’ figures that they put out to the media and the analysts.  In a nutshell, we really can’t believe ANY of the numbers that we hear:
-       72% of the S&P had ‘adjusted their profits’ higher than their REAL net income.  And the ‘adjustments’ are 77% higher than they were just 5 years ago.
-       To put this in context, from 2010 to 2014 the ‘adjusted profits’ for the S&P 500 came in $583B higher than their respective real net incomes.  It is as if each company in the S&P created 8 months of additional / ‘fictitious’ earnings.
-       Example #1: Boston Scientific (a maker of medical devices) recent ‘wrote-off’ a poor acquisition.  Instead of reporting their corresponding quarterly results as a loss of $4.9B, they lied and reported the ‘adjusted profit’ number as a $3.6B gain.  I listened to the earnings call, and the CFO used the words ‘adjusted profit’ 34 times – twice every minute.
-       Example #2: Salesforce.com should show ‘stock awarded to executives’ as an expense in their profit calculations, but this would have shown a $712M loss over 5 years rather than their reported $1.2B gain.

We stand on the 800-year anniversary of the Magna Carta (originally drafted June 15, 1215) – if you can’t believe the numbers, what can you believe in?  The Magna Carta played a formative role in the development of our own Constitution.  It promised the protection of worship rights, illegal imprisonment, access to swift justice, and limited payments to the government.  It formulated the protections that we now call individual freedoms, allocated powers to the government, and laid the foundation for legal principles such as habeas corpus.  As SF said: “Today, we live in a world where we continue to fight against the same issues, only with an ebb and flow of regulations dependent on the balance (or imbalance) of the members holding the Executive, Legislative and Judicial branches.  Today, we fight for our essential freedoms afforded to individuals, corporations, and our own version of the Magna Carta – the American Constitution.”

Mr. Rhoades, every Saturday morning you fought for and communicated with ‘Middle America’.  At this stage I have to believe that the wrestling you did – was more ‘real’ than our current economy.  I have to believe that we should force our current batch of CFO’s to sit down and watch you wrestle – so that they can get a real understanding of reality versus fantasy, and at least learn to be more entertaining.


The Market:

Factually:
-       BP claims that (excluding the 2008 crisis) oil consumption is the lowest it's ever been in the 21st century.  Does that sound like a global recovery to you?
-       On Thursday the European Commission gave France, Italy and nine other EU countries two months to adopt the new EU resolution for propping up failed banks.  These new rules will force creditors and shareholders to contribute to bank rescues.  Why the sudden sense of urgency?  Why – because the EU knows that there is another situation brewing, and they want to make sure that the banks have a way out via their shareholders.
-       Finally – Greece needs to default, return to its own currency, devalue, and restructure.  But the EU has three issues with that.  First, it would be the first solid evidence that the EU was a doomed alliance from the start.  Secondly it raises the fear that other nations could exit the Euro.  And finally, Greece is a NATO country, and NATO doesn't want them ‘going it alone’ and possibly making deals with Russia or China.  This is why they've kicked the can down the road for so long.  Of course the EU leaders know that Greece cannot and will not make its payments.  At this point they’re just praying that they can keep the ponzi scheme alive. 

So what do we make of this market?  Has it topped out, or is this just more sideways slop as they try and base for another shot at making new highs?  On a technical basis this market is signaling that it is ready to roll over.  Since the March 2nd high, we’ve tried to breakout 3 times and have failed 3 times.  A chart of the S&P (SPX) shows that it doesn’t fall under its 100-day moving average for long, and Friday ended the day just 6 points above that line.

My point is that the S&P has failed to breakout to new highs, and has clear support at its 100-day moving average.  The failed breakouts tell me that this market is not as strong as we may think.  The breakouts get their fuel from Greek bailout rumors, ‘fake’ adjustments, and increased corporate buy backs – not from fundamental buying on the part of the investment community.  On a purely technical basis, I'd say the market is poised to fade further from here.  But the ‘banksters’ could come out at any time and say that Greece has been fixed or invent some economic data that sends us up to challenge the all time highs.

We are witness to an epic battle.  On one side the fundamentals of the economy are telling us that it ‘stinks’ out loud.  On the other side is a ponzi scheme where asset prices MUST continue to rise in order for corporations to use those same assets as collateral to continue to borrow.  In order to keep these asset prices rising, we've seen them employ all kinds of financial manipulations from bailouts, to QE, to twists, to Japan printing trillions, to the ECB going QE crazy.  They've manufactured economic data, created rumors, and completely faked the numbers.  These efforts are not going to stop.  Yet by the sharp rise in interest rates this week, it seems that there does come a point where the market forces say ‘enough’, and all of these schemes begin to fail.  I think we're nearing that point.

This coming week will bring us the Federal Reserve meeting, and as usual all eyes will be on what Ms. Yellen has to say.  If Ms. Yellen continues to tell us that ‘all is well’ and rate hikes are coming – the market may very well have a knee-jerk reaction downward.  But if she talks of leaving rates alone, we could see a massive run back to the highs.

Isn't it wonderful having to invest based on rumors, lies, FOMC drama and banksters?  But that's the hand we're dealt, and we have to play through it.  My feeling is that the market is heavy, it should roll over and play dead, but they will indeed continue to try their best to manipulate it higher, resulting in more chop and volatility this coming week.


TIPS:

So, we have a market stuck within a tight 300-point DOW trading range of between 17,800 and 18,100.  But what’s more concerning is the volume.  Last Thursday and Friday were two of the lowest volume days of the year.  Faced with a tight range and low volume, the trick is to not over-trade.

The Transports are still below their 21-day exponential moving average, and that bothers me.  The Central bankers have two choices: One – let the market crash and then reconstruct, or Two – continue the ponzi scheme until they can't.  We're back to ‘buying the dips and selling the rips’.  Fundamentally, this market is out of gas, and it's all about Central bank interventions.  I think all that really matters is S&P (SPX) 2100.  It's been like that most of 2015, and there is zero evidence that it is changing.  There is a lot of money being made keeping this market in a range, and selling premium outside of that range.  When there is so much money being made in a deal like that, it will keep going until it can no longer be contained.  I love the idea of selling spreads around the 2100 strike on the SPX.  That being said, most stocks (in the S&P 500) will also then stay in a tight range.  I think there will be a big opportunity for selling premium into next week's monthly options expiration – with the idea of ‘contained moves’ being the order of the day. 

I’m currently looking at:
-       PANW (Palo Alto Networks) – Buying the June 172.5 / 177.5 / 180 Broken Wing Butterfly, and Selling the June 165 / 167.5 Put Credit Spread to pay for it,
-       DPZ (Domino’s Pizza) – Selling the July Iron Condor = 95 / 100 to 125 / 130,
-       And continue selling Iron Condors on both the SPX and RUT.

I’m currently holding:
-       CMG (Chipotle)– BOUGHT – June 610 / 600 / 590 Put Butterfly, and  SOLD – June 630 / 632.5 Call Credit Spread,
-       CVX (Chevron) – BOUGHT the June 97 / 100 / 105 Broken-wing Butterfly,
-       DE (Deere) – SOLD a June 96 / 97.5 Call Credit Spread,
-       FB (Facebook) – BOUGHT the June 78 / 80 / 82 Put Butterfly,
-       FEYE (FireEye) – BOUGHT – June 48 / 52 / 53 Broken Wing Butterfly, and  SOLD – 45 / 48 Put Credit Spread,
-       IWM – SOLD the August 112 / 114 to 132 / 134 Iron Condor,
-       IYT (Transportation Sector ETF) – SOLD the June 153 / 160 Call Credit Spread, and  BOUGHT the June / July 150 Put Calendar, and  SOLD the June 148 Put / BOUGHT the July 144 Put – creating a diagonal to the downside,
-       KR (Kroger) – SOLD a June 67.5 / 70 Put Credit Spread,
-       LL – SOLD an Iron Condor – June @ 18 / 19.5 to 24 / 25.5,
-       ORCL (Oracle) – BOUGHT June $45 Calls (Earnings are on June 18),
-       RUT – SOLD the August 1140 / 1150 to 1330 / 1340 Iron Condor,
-       SPX – SOLD – Iron Condor – June @ 1970 / 1975 to 2175 / 2180,
o   SOLD – Iron Condor – June @ 2055 / 2100 to 2100 / 2045,
o   SOLD – Iron Condor – July2 @ 2005 / 2010 to 2180 / 2185,
o   SOLD – Iron Condor – July2 @ 1985 / 1990 to 2190 / 2195,
o   SOLD – Iron Condor – July2 @ 1985 / 1990 to 2160 / 2165,
o   SOLD – Iron Condor – July @ 1990 / 1995 to 2180 / 2185,
o   SOLD – Iron Condor – July4 @ 1860 / 1870 to 2235 / 2245,
o   SOLD – Iron Condor – July4 @ 1940 / 1945 to 2175 / 2180,
o   SOLD – Iron Condor – July4 @ 1955 / 1960 to 2185 / 2190,
o   SOLD – Iron Condor – July4 @ 1955 / 1960 to 2175 / 2180,  
o   SOLD – Iron Condor – July5 @ 1870 / 1880 to 2230 / 2240,
o   SOLD – Iron Condor – July5 @ 1925 / 1930 to 2195 / 2200,
o   SOLD – Iron Condor – July5 @ 1935 / 1940 to 2195 / 2200,
o   SOLD – Iron Condor – July5 @ 1925 / 1930 to 2185 / 2190,    
o   SOLD – Iron Condor – Aug1 @ 1935 / 1940 to 2225 / 2230,
o   SOLD – Iron Condor – Aug2 @ 1920 / 1925 to 2230 / 2235,
o   SOLD – Iron Condor – Aug @ 1840 / 1850 to 2250 / 2260,
o   SOLD – Iron Condor – Aug @ 1885 / 1890 to 2180 / 2185,
o   SOLD – Iron Condor – Aug4 @ 1895 / 1900 to 2195 / 2200,
o   SOLD – Iron Condor – Aug4 @ 1895 / 1900 to 2240 / 2245,
o   SOLD – Iron Condor – Sept1 @ 1880 / 1885 to 2215 / 2220,
o   BOUGHT – a June Butterfly centered around 2100 with the wings a single standard deviation (45 points) wide,
-       SPY – BOUGHT the 200 / 207 / 209 June Put Butterfly, and
-       TSLA (Tesla) – BOUGHT the 240 / 247.5 / 250 Put Butterfly.

To follow me on Twitter.com and on StockTwits.com to 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.

If you'd like to see RF in action - teaching people about investing - please feel free to view the TED talk that he gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0


To unsubscribe please refer to the bottom of the email.

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>




Sunday, June 7, 2015

This Week in Barrons - 6-7-2015

This Week in Barrons – 6-7-2015:

      


















What if…


Thoughts:

Dear Ms. Yellen:

What if:
-       The U.S. made a move to confiscate all 401Ks and pensions?
-       The U.S. abolished cash and everything became digital?
-       China announced that it was willing to back its currency with gold?
-       And What If the U.S. dollar lost its reserve currency status?

I’ll stop there.  Are any of these impossible?  Nope – not a one.  Are any of them probable?  Yes – most of them, but let’s just consider the first one.  If I would ask you: “What if the U.S. actually declared that they are now in charge of your 401k and pension plan?”  Most of you would just roll your eyes.  But then I’d ask: “Did you ever think that the U.S. would force you to buy health insurance?”  This ain’t your daddy’s government anymore.

In 2010, Democrats in the Senate held a recess hearing over a potential taxpayer bailout of union pension plans, and a plan to seize (and more ‘fairly distribute’ to everyone) private 401Ks.  Sen. Tom Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee heard from witnesses advocating the infamous ‘Guaranteed Retirement Account’ (GRA) authored by Theresa Guilarducci.  Under the GRA system, the government would seize private 401K accounts, and set up an additional 5% mandatory payroll tax – in order to pay out a ‘fair’ pension to everyone using that confiscated money coupled with the mandated contributions.  This would be in addition to Social Security, and would give big government politicians the additional $17T of funds that are currently sitting in pension and 401K accounts.  My guess is that plan never made it to your ‘nightly news’.

Consider these facts:
-       The U.S. courts sided with the Sentinel Hedge Fund when they ‘co-mingled’ customer money with their own, and lost it all.  The court said that this was a legal practice because the lost money was unintentional.  This caused the President to introduce the ‘MyRA’ program that was to offer a ‘decent’ return with no risk of losing what you put in.
-       The G-7 meeting last year re-defined a bank deposit as ‘loaning’ the bank your money.  As a result this put bank depositors in line behind other creditors if/when the bank failed.
-       And finally there is the Supreme Court case: Tibble versus Edison.   This is where the holders of a 401K plan said that the plan administrator (the company) had them in funds with excessive rates, while other institutional funds were available with the same make up and lower fees.  The court agreed, and a lot of people were cheering the decision.  But, the court then said that if pension funds or retirement accounts “underperform,” the Government should be allowed to step in and seize those funds.  Whoa.

So we have a broke Government that’s about $17T in the hole, and we have thousands of pension and 401K plans that (coincidently) hold about $17T in deposits.  We have a Treasury backed ‘retirement plan’ called a MyRA that gives you access to U.S. Treasuries as a savings vehicle.  We have a Congress that has looked at plans to confiscate all 401Ks and "distribute the savings more fairly".  We have changed the definition of a cash deposit, into a ‘loan to the bank’.  And we have hedge funds using customer money as their own – losing it – and having the court saying that it’s ok.

So I ask you: is the U.S. confiscating our 401Ks and pension funds that far off?  I don’t think so.  In fact, I think that IS the plan, and they just don't know how to pull it off yet.  Around the globe there is a push to: a) ban cash transactions, b) limit the number of times you can take cash out of your bank, and c) accept China’s Yuan in the IMF’s SDR.  I’m seeing a lot of moving parts in a confused and insecure world.  Remember, NO ONE is going to look after your money better than YOU.


The Market:

What a mess this market is.  You can almost sense that the ‘end game’ is beginning to play out.  Last week: a) mortgage applications fell by 7.6%, b) refinancing’s fell by 11%, c) productivity decreased by 3%, and d) labor costs spiked higher by 6.7%.  But more interesting was the crazy action in the bond pits around Europe.  Germany's ‘Bund’ soared again, and for a moment hit 1%.  Now that doesn't sound like much, but when you think that just two weeks ago they were at 0.15% - that’s an almost 600% move in two weeks.  That had other nations seeing their own notes yielding much higher levels, and it was crazy before it settled down.

Then there’s Greece.  The only reason why Greece is so important is what nations follow Greece when they exit the European Union.  I’m guessing that Spain, Portugal, Italy and probably Ireland are next.  That would doom the Eurozone.  The second reason for the interest in Greece is for ‘stability’ and ‘security’ of the region.  Greece is a NATO member, and NATO doesn't want to see Greece pull out, and potentially partner with Russia and China.  That is why the EU ‘kicked the can down the road’ this week, and allowed Greece to miss it’s latest payment – but bundle it in with 3 others that are due at the end of June.

For weeks I have watched as the S&P Index (SPX) continued to trade in a range between 2,080 and 2,120.  It now appears that the range has tightened to 2,100 to 2,120.  Going forward, I’ll be looking to sell into 2,120 and buy at 2,100.  That said, I will be cautious because a range this tight cannot hold up for long.  Below 2,100 there is support at 2,080, and above 2,120 there is the intra-day all-time high of 2,135.

The next event on the calendar will be the June 16-17 FED meeting.  FED meetings are always critically important to the market, but this one could be even more so.  The FED did not have a meeting in May, so they will now have two months of data to consider.  This meeting will also be accompanied by a press conference from Fed Chairwoman Janet Yellen.  At one point forecasters had pinpointed this June meeting as the time when the FED would finally raise rates.  With the meeting almost upon us, no one thinks there’s any chance of a rate hike.  I’ve said time and time again that the FED will take its time raising rates, and it’s likely to finally happen much later than anyone expects.  While I’m confident we won’t see a rate hike anytime soon, that doesn’t make it any easier to trade.  A hawkish outlook from the Fed could be the spark the bears are looking for to finally see a broad-based sell-off.

All of this is still a few weeks off, though.  In the immediate future, I would imagine we will see more ‘Summer Trading’ over the next few weeks as all eyes begin to focus on the FED.  For my part, I’m continuing to stay balanced on either long-term balanced trades, or short-term day trades – scalping points where I can get them.  


TIPS:
Friday’s Jobs Report told us that we created 280k new jobs in the month of May.  This was good news.  And you are probably wondering why I'm not harping on the fact that the Bureau of Labor and Statistics’ Birth/Death model added 213K of these new 280K jobs.  (FYI – these are jobs that don't really exist.)  The reason is that (by now) the world realizes that the Jobs numbers are bogus, but the market still trades on these bogus numbers.  The market’s moves are based upon the 280K number, and not the ‘more truthful’ 67K number.  I remain playing both sides of the S&P, as the Transportation Sector is broken, and is often a predictor of things to come.

I’m currently looking at:
-       SPX – Buying the June – Butterfly – centered around 2100 (due to the high open interest) – and a single standard deviation (45 points) wide,
-       PANW (Palo Alto Networks) – Buying the June 172.5 / 177.5 / 180 Broken Wing Butterfly, and Selling the June 165 / 167.5 Put Credit Spread to pay for it, and using the same recurring theme with:
-       BIDU – Buying the June 205 / 210 / 212.5 Broken Wing Butterfly, and Selling the June 195 / 197.5 Put Credit Spread, 
-       QIHU – Buying the June 61 / 65 / 67.5 Broken Wing Butterfly, and Selling the June 58 / 60 Put Credit Spread,
-       BABA – Buying the June 90 / 92 / 93.5 Broken Wing Butterfly, and Selling the June 86 / 88 Put Credit Spread, 
-       AMBA – Buying the June 100 / 110 / 115 Broken Wing Butterfly, and Selling the June 90 / 95 Put Credit Spread,  
-       And continue selling Iron Condors on both the SPX and RUT.

I’m currently holding:
-       ABBV (Abbvie) – BOUGHT – June 67.5 Call, 
-       CMG (Chipotle)– BOUGHT – June 610 / 600 / 590 Put Butterfly,
o   SOLD – June 630 / 632.5 Call Credit Spread,
-       CVX (Chevron)
-       DE (Deere) – SOLD a June 96 / 97.5 Call Credit Spread, 
-       FEYE (FireEye) – BOUGHT – June 48 / 52 / 53 Broken Wing Butterfly,
o   SOLD – 45 / 48 Put Credit Spread,
-       IYT (Transportation Sector ETF) – SOLD the June 153 / 160 Call Credit Spread, 
o   BOUGHT the June / July 150 Put Calendar,
o   SOLD the June 148 Put / BOUGHT the July 144 Put – creating a diagonal to the downside, 
-       KR (Kroger) – SOLD a June 67.5 / 70 Put Credit Spread, 
-       LL – SOLD an Iron Condor – June @ 18 / 19.5 to 24 / 25.5, 
-       NUGT – BOUGHT shares and weekly covered calls, 
-       ORCL (Oracle) – BOUGHT June $45 Calls (Earnings are on June 18), 
-       RH (Restoration Hardware) – BOUGHT the June / July $95 Call Calendar (Earnings on June 10),
o   RUT – BOUGHT July Butterfly @ 1180 / 1250 / 1310, 
o   SOLD – Iron Condor – July @ 1140 / 1150 to 1330 / 1340,
o   SOLD – Iron Condor – August @ 1150 / 1160 to 1320 / 1330,
-       TGT (Target) – BOUGHT the 80 / 82 / 82.5 Call Butterfly, 
o   SPX – SOLD – Iron Condor – June @ 1970 / 1975 to 2175 / 2180, 
o   SOLD – Iron Condor – June4 @ 1945 / 1950 to 2185 / 2190, 
o   SOLD – Iron Condor – July1 @ 1890 / 1900 to 2195 / 2205,
o   SOLD – Iron Condor – July1 @ 1980 / 1985 to 2180 / 2185,  
o   SOLD – Iron Condor – July2 @ 1905 / 1910 to 2180 / 2185, 
o   SOLD – Iron Condor – July2 @ 2005 / 2010 to 2180 / 2185,
o   SOLD – Iron Condor – July2 @ 1985 / 1990 to 2190 / 2195,
o   SOLD – Iron Condor – July @ 1900 / 1910 to 2200 / 2210, 
o   SOLD – Iron Condor – July4 @ 1860 / 1870 to 2235 / 2245, 
o   SOLD – Iron Condor – July5 @ 1870 / 1880 to 2230 / 2240,
o   SOLD – Iron Condor – July5 @ 1925 / 1930 to 2195 / 2200,
o   SOLD – Iron Condor – July5 @ 1935 / 1940 to 2195 / 2200,   
o   SOLD – Iron Condor – Aug1 @ 1935 / 1940 to 2225 / 2230,
o   SOLD – Iron Condor – Aug2 @ 1920 / 1925 to 2230 / 2235, 
o   SOLD – Iron Condor – Aug @ 1840 / 1850 to 2250 / 2260,
o   SOLD – Iron Condor – Aug4 @ 1895 / 1900 to 2195 / 2200, 
o   SOLD – Iron Condor – Aug4 @ 1895 / 1900 to 2240 / 2245, and
-       SPY – BOUGHT the 200 / 207 / 209 June Put Butterfly.

To follow me on Twitter.com and on StockTwits.com to 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.

If you'd like to see RF in action - teaching people about investing - please feel free to view the TED talk that he gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0


To unsubscribe please refer to the bottom of the email.

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.

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Until next week – be safe.

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