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Should You Sell in April?

By Mark Hulbert, MarketWatch

CHAPEL HILL, N.C. (MarketWatch) — Those interested in doing some spring cleaning in their portfolios this month might be tempted to do the most radical spring cleaning of all: Sell everything and go to cash.

That’s because April represents the end of the seasonally favorable six-month period that began last Halloween, and the fast approach of the time when many will “Sell in May and Go Away.” Should you try to get a head start on those who mechanically wait until May Day to do their selling?

Read the rest here.

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10 Wall Street Reporters You Should Follow on Twitter

April 2, 2012 By

If Fox Business were serious about going after CNBC/Bloomberg, they would hire Bess Levin to co-anchor a show with Charlie Gasparino and call it “STFU or GTFO”. Talk about a ratings bump….

Until then, Twitter can serve as an alternative for the dream team of co-anchors. As our readership expands to those outside the echo-chamber, we thought it would be a good idea to give everyone a guide on who to follow in the financial journalism world. The following people can turn Fed Decisions into Super Bowl Sunday.

Get the list of 10 reporters here.

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Sexy Russian Spy Anna Chapman Arrested Because She Was Getting Too Close To Someone Inside “Obama’s Inner Circle”?

via Ace

That’s what a former FBI counterintelligence officer reveals.

The Independent (UK) highlights the six hundredth revelation that Iraqi informant “Curveball” lied. They bury the actual new news — that the FBI felt it had to move quickly to arrest and deport Anna Chapman, for fear that someone close to Obama was about to snork her, and get caught in a “honey trap” (sex, followed by extortion for secrets/influence).

That someone “close” to Obama? A “sitting cabinet official,” this FBI counterintelligence officer says.

Read the rest here.

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STAND YOUR GROUND: No Democrat Florida Senators Voted Against the Law

David Martosko

Despite liberal protesters’ claims that Florida’s so-called “stand your ground” gun law demonstrates that Republican policymakers are responsible for the February death of 17-year-old Trayvon Martin, an analysis of its legislative history shows that it was a bipartisan effort — and that no Florida Democratic state senator voted against it.

One Democrat, Fort Lauderdale state Sen. Mandy Dawson, missed the vote. But the rest of the Senate chamber supported it, 39-0.

The Florida House vote was 92-20. Twelve Democrats voted in favor.

And of the 15 states that have passed variations of the law since 2005, the year Florida’s model legislation became law, eight — a majority — had Democratic governors when the laws were enacted. None issued a veto.

Democratic governors who signed “stand your ground” bills, or otherwise permitted them to become law, include Kathleen Blanco of Louisiana, Jennifer Granholm of Michigan, Brian Schweitzer of  Montana, John Lynch of New Hampshire, Brad Henry of Oklahoma, Phil Bredesen of Tennessee, Joe Manchin of West Virginia and Janet Napolitano of Arizona – now the U.S. Secretary of Homeland Security.

The bills in Louisiana and West Virginia passed with Democratic control of both houses in the states’ legislatures, in 2006 and 2008, respectively.

Read the rest here.

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Obama’s Alinsky Strategy: Who’s Next?

“If I had a son, he’d look like Trayvon.” The death of Trayvon Martin is a tragedy–as was the death of a 6-year-old girl named Aliyah Shell (photo above), caught in the crossfire of gang violence over St. Patrick’s Day weekend in Chicago.

But Aliyah’s story received very little coverage, despite the event being more recent than the Martin tragedy, and despite the fact that it happened in President Barack Obama’s very own Chicago on a weekend when 49 people were shot and 10 others were killed.

No mention of Aliyah from the president. No public outpouring for a young mother who sat untangling her daughter’s hair as shots rang out. Nothing. And yet…

“If I had a son, he’d look like Trayvon.”

Why? Why would the president weigh in on this specific case at this specific time?

It’s not about wrong or right. It’s not about justice. It’s not about Trayvon Martin.

“The despair is there; now it’s up to us to go in and rub raw the sores of discontent, galvanize them for radical social change.”- Saul Alinsky

An interesting quote to consider, from the man who shaped the minds of those who shaped President Obama.

Now consider Obama’s former chief of staff Rahm Emanuel’s notorious statement: “You never want a serious crisis to go to waste.”

The meaning is the same. It is calculating and it is dangerous, part of a bigger picture–a multi-faceted war to divide America for the sole purpose of securing Obama’s re-election and subsequent radical social change.

Look at the contrived conflicts on the left wing’s political chessboard:

Move 1   Occupy Wall Street: the (self-appointed) 99% versus the 1%

Move 2   Contraceptive/abortifacient mandates: government versus religion

Move 3   Sandra Fluke: women versus conservatives (supposedly)

And now…

Move 4   Trayvon Martin: black versus “white” (so-called)

This is not complicated. President Obama is organizing. It’s that simple, and it’s straight out of the radical playbook:

“Once you organize people, they’ll keep advancing from issue to issue toward the ultimate objective: people power. We’ll not only give them a cause, we’ll make life goddamn exciting for them again — life instead of existence. We’ll turn them on…” – Saul Alinsky

This is not about Trayvon Martin. This is about divide and conquer. Hope and Change has been replaced with Us vs. Them. This about pitting Americans against Americans.

The despair is there… so, what’s Move 5?

SOURCE

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The Greatest Myth About Trading

via BCLUND

Risk is something that most people associate with trading.  In fact, to the public at large, you are often likely to get the response, “isn’t that risky,” when you tell them that you trade for a living.  However, I think that is one of the biggest myths about trading, and I assert that trading is no more risky than most other jobs.

Read the rest here.

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Why Are the Fed and SEC Keeping Wall Street’s Secrets?

William D. Cohan

Getting what should be public information about major Wall Street firms can be maddeningly difficult.

Bloomberg News discovered this in its ultimately successful effort to get information on the $1.2 trillion in “secret loans” the Fed doled out during the financial crisis. And I’ve had no small experience of it myself.

As I started each of my three books — about Lazard Freres, Bear Stearns and Goldman Sachs Group Inc. (GS) — I submitted Freedom of Information Act requests to the appropriate government agencies (the Securities Exchange Commission, the State Department and the Federal Reserve) to obtain whatever documents, memos and e-mails they had about these companies and their senior executives.

I was hoping to find, among other nuggets, details of enforcement actions, or settlements that were reached where the firms “neither admitted nor denied” guilt, or other documentary evidence of the coziness that has for too long existed between Wall Street and Washington.

Sadly, getting this information in anything like a timely basis — say, before my books were finished and published — has been nearly impossible. At first, when I asked the SEC about documents related to Lazard’s role in the Hartford-Mediobanca scandal starting in 1968 and ending in 1981, the agency told me it could not release the information. When I reminded the FOIA administrator that the SEC had already released the information, years before, to another journalist, the agency dug up the 40 boxes of unindexed, unorganized documents and invited me to a warehouse in Pennsylvania to take a look. After an hour or so, the clerk asked me if I was done with my review. (Eventually, I persuaded the SEC to ship the boxes — at my expense — to its office in Manhattan, where I spent months poring over them.)

Read the rest here.

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GOLDMAN: The Next 24 Hours Will Be Critical For The Global Economy

Joe Weisenthal

Goldman’s Dominic Wilson is out with a new note offering guidance to investors on whether to finally jump off the stockmarket, and get more bearish.

Here’s the key threshold:

We think that risk assets are likely to move higher as long as US data remain consistent with GDP growth of somewhat more than 2%.

The next several hours may be decisive…

Given more mixed news in March, and the likelihood that weather-related boosts will fade in the month or two ahead, the stakes have been raised for the releases over the next 24 hours. At the risk of oversimplification, if the ISM and global PMIs bounce convincingly, we think the market is likely to be able to make fresh highs. If instead we see a second month of declines, we are likely to turn more cautious.

So basically, huge hours ahead, starting with the Chinese PMI today, and ending with US ISM numbers tomorrow morning.

UPDATE: The official Chinese PMI reading has bounced back nicely.

European PMI data will come out super-early on Monday.

Read the rest here.

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10 Most Foolish Things a Trader Can Do

Joshua M Brown, The Reformed Broker
April 1st, 2012

Happy April Fools Day. Hopefully you got through it without being pranked.

I have my own version of this “10 Foolish Things” concept in my head but I’m not quite ready to flesh it out yet. But here’s a great iteration from a site called New Trader U…

I came across this post by Stephen Burns and he’s allowed me to repost it here, check it out!

Read the rest here.

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Low IQ & Liberal Beliefs Linked To Poor Research?

Watch out Sam Harris, Gordon Hodson and Michael A. Busseri of Brock University are giving you competition for the worst use of statistics in an original paper.

Their “Bright Minds and Dark Attitudes: Lower Cognitive Ability Predicts Greater Prejudice Through Right-Wing Ideology and Low Intergroup Contact” published in Psychological Science1—headlined in the press as Low IQ & Conservative Beliefs Linked to Prejudice—is a textbook example of confused data, unrecognized bias, and ignorance of statistics.

Hodson and Busseri on are track to beat out Harris’s magnificent effort, and they might also triumph over the paper which “proved” brief exposure to the American flag turns one into a Republican and the peer-reviewed work “proving” exposure to 4th of July parade turns one into a Republican.

Let’s see how they did it.

Read the rest here.

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JAMA Forum: The Supreme Court Flunks Economics—and That’s Bad News for Patients and Physicians

By David Cutler, PhD

This week, we were treated to the spectacle of the US Supreme Court debating economics. They called it a discussion about the Affordable Care Act (ACA), but it was more economic than legal. They spent an enormous amount of time on markets for health insurance and food (broccoli, to be specific); they spent little time analyzing precedent. Between the 9 justices and the 7 lawyers, there were 16 people who took part in the debate. As best as I can tell, not one of them had any training in economics.

As a professor of economics, I can say without hesitation that the Supreme Court failed its oral exam. For the sake of patients and physicians, I hope they do better on the final.

Read the rest here.

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Groups Work to Identify Aging Trees Bent by American Indians to Mark Trails, Water Crossings

If you’ve ever spent significant time in the woods, you’ve undoubtedly run across these trees. I had always heard that they were made by the Native Americans, but didn’t know it was the truth, until now…

————————————————————————————

By Associated Press, Updated: Saturday, March 31, 6:05 PM
DALLAS — The pecan tree, more than 300 years old, stands out from the others in a forested area of Dallas, a 25-foot segment of its trunk slightly bowed and running almost parallel to the ground before jutting high up into the sky.

It, like numerous others across the country known as Indian marker trees or trail trees, was bent in its youth by American Indians to indicate such things as a trail or a low-water creek crossing.

“If they could talk, the stories they could tell,” said Steve Houser, an arborist and founding member of the Dallas Historic Tree Coalition. The trees, he said, “were like an early road map.”

Read the rest here.

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War On Words: NYC Dept. Of Education Wants 50 ‘Forbidden’ Words Banned From Standardized Tests

NEW YORK (CBSNewYork) — George Carlin is rolling over in his grave.

The New York City Department of Education is waging a war on words of sorts, and is seeking to have words they deem upsetting removed from standardized tests.

Fearing that certain words and topics can make students feel unpleasant, officials are requesting 50 or so words be removed from city-issued tests.

The word “dinosaur” made the hit list because dinosaurs suggest evolution which creationists might not like, WCBS 880′s Marla Diamond reported. “Halloween” is targeted because it suggests paganism; a “birthday” might not be happy to all because it isn’t celebrated by Jehovah’s Witnesses.

Julie Lewis’ family celebrates Christmas and Kwanzaa, but she told CBS 2′s Emily Smith she wants her children to appreciate and learn about other holidays and celebrations.

“They’re going to meet people from all walks of life and they’re going to have to learn to adjust,” Lewis said.

Words that suggest wealth are excluded because they could make kids jealous. “Poverty” is also on the forbidden list. That’s something Sy Fliegal with the Center for Educational Innovation calls ridiculous.

“The Petersons take a vacation for five days in their Mercedes … so what? You think our kids are going to be offended because they don’t have a Mercedes? You think our kids are going to say ‘I’m offended; how could they ask me a question about a Mercedes? I don’t have a Mercedes!’” Fliegal said.

In a throwback to “Footloose,” the word “dancing” is also taboo. However, there is good news for kids that like “ballet”: The city made an exception for this form of dance.

Also banned are references to “divorce” and “disease,” because kids taking the tests may have relatives who split from spouses or are ill.

Some students think banning these words from periodic assessment tests is ridiculous.

“If you don’t celebrate one thing you might have a friend that does it. So I don’t see why people would find it offensive,” Curtis High School Sophomore Jamella Lewis told Diamond.

Schools Chancellor Dennis Walcott said the DOE is simply giving guidance to the test developers.

“So we’re not an outlier in being politically correct. This is just making sure that test makers are sensitive in the development of their tests,” Walcott said Monday.

To which Fliegal responded: “It’s all of life! I don’t know how they figure out what not to put on the list. Every aspect of life is on the list.”

There are banned words currently in school districts nationwide. Walcott said New York City’s list is longer because its student body is so diverse.

Here is the complete list of words that could be banned:

Abuse (physical, sexual, emotional, or psychological)

Alcohol (beer and liquor), tobacco, or drugs

Birthday celebrations (and birthdays)

Bodily functions

Cancer (and other diseases)

Catastrophes/disasters (tsunamis and hurricanes)

Celebrities

Children dealing with serious issues

Cigarettes (and other smoking paraphernalia)

Computers in the home (acceptable in a school or library setting)

Crime

Death and disease

Divorce

Evolution

Expensive gifts, vacations, and prizes

Gambling involving money

Halloween

Homelessness

Homes with swimming pools

Hunting

Junk food

In-depth discussions of sports that require prior knowledge

Loss of employment

Nuclear weapons

Occult topics (i.e. fortune-telling)

Parapsychology

Politics

Pornography

Poverty

Rap Music

Religion

Religious holidays and festivals (including but not limited to Christmas, Yom Kippur, and Ramadan)

Rock-and-Roll music

Running away

Sex

Slavery

Terrorism

Television and video games (excessive use)

Traumatic material (including material that may be particularly upsetting such as animal shelters)

Vermin (rats and roaches)

Violence

War and bloodshed

Weapons (guns, knives, etc.)

Witchcraft, sorcery, etc.

SOURCE

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New Research: Compelling Evidence of Urban Heat Island Effect in Global Temperature Data

McKitrick & Michaels Were Right: More Evidence of Spurious Warming in the IPCC Surface Temperature Dataset

Guest post by Roy W. Spencer, Ph. D.

The supposed gold standard in surface temperature data is that produced by Univ. of East Anglia, the so-called CRUTem3 dataset. There has always been a lingering suspicion among skeptics that some portion of this IPCC official temperature record contains some level of residual spurious warming due to the urban heat island effect. Several published papers over the years have supported that suspicion.

The Urban Heat Island (UHI) effect is familiar to most people: towns and cities are typically warmer than surrounding rural areas due to the replacement of natural vegetation with manmade structures. If that effect increases over time at thermometer sites, there will be a spurious warming component to regional or global temperature trends computed from the data.

Here I will show based upon unadjusted International Surface Hourly (ISH) data archived at NCDC that the warming trend over the Northern Hemisphere, where virtually all of the thermometer data exist, is a function of population density at the thermometer site.

 

Depending upon how low in population density one extends the results, the level of spurious warming in the CRUTem3 dataset ranges from 14% to 30% when 3 population density classes are considered, and even 60% with 5 population classes.

DATA & METHOD

Analysis of the raw station data is not for the faint of heart. For the period 1973 through 2011, there are hundreds of thousands of data files in the NCDC ISH archive, each file representing one station of data from one year. The data volume is many gigabytes.

From these files I computed daily average temperatures at each station which had records extending back at least to 1973, the year of a large increase in the number of global stations included in the ISH database. The daily average temperature was computed from the 4 standard synoptic times (00, 06, 12, 18 UTC) which are the most commonly reported times from stations around the world.

At least 20 days of complete data were required for a monthly average temperature to be computed, and the 1973-2011 period of record had to be at least 80% complete for a station to be included in the analysis.

I then stratified the stations based upon the 2000 census population density at each station; the population dataset I used has a spatial resolution of 1 km.

I then accepted all 5×5 deg lat/lon grid boxes (the same ones that Phil Jones uses in constructing the CRUTem3 dataset) which had all of the following present: a CRUTem3 temperature, and at least 1 station from each of 3 population classes, with class boundaries at 0, 15, 500, and 30,000 persons per sq. km.

By requiring all three population classes to be present for grids to be used in the analysis, we get the best ‘apples-to-apples’ comparison between stations of different population densities. The downside is that there is less geographic coverage than that provided in the Jones dataset, since relatively few grids meet such a requirement.

But the intent here is not to get a best estimate of temperature trends for the 1973-2011 period; it is instead to get an estimate of the level of spurious warming in the CRUTem3 dataset. The resulting number of 5×5 deg grids with stations from all three population classes averaged around 100 per month during 1973 through 2011.

RESULTS

The results are shown in the following figure, which indicates that the lower the population density surrounding a temperature station, the lower the average linear warming trend for the 1973-2011 period. Note that the CRUTem3 trend is a little higher than simply averaging all of the accepted ISH stations together, but not as high as when only the highest population stations were used.

The CRUTem3 and lowest population density temperature anomaly time series which go into computing these trends are shown in the next plot, along with polynomial fits to the data:

Again, the above plot is not meant to necessarily be estimates for the entire Northern Hemispheric land area, but only those 5×5 deg grids where there are temperature reporting stations representing all three population classes.

The difference between these two temperature traces is shown next:

From this last plot, we see in recent years there appears to be a growing bias in the CRUTem3 temperatures versus the temperatures from the lowest population class.

The CRUTem3 temperature linear trend is about 15% warmer than the lowest population class temperature trend. But if we extrapolate the results in the first plot above to near-zero population density (0.1 persons per sq. km), we get a 30% overestimate of temperature trends from CRUTem3.

If I increase the number of population classes from 3 to 5, the CRUTem3 trend is overestimated by 60% at 0.1 persons per sq. km, but the number of grids which have stations representing all 5 population classes averages only 10 to 15 per month, instead of 100 per month. So, I suspect those results are less reliable.

I find the above results to be quite compelling evidence for what Anthony Watts, Pat Michaels, Ross McKitrick, et al., have been emphasizing for years: that poor thermometer siting has likely led to spurious warming trends, which has then inflated the official IPCC estimates of warming. These results are roughly consistent with the McKitrick and Michaels (2007) study which suggested as much as 50% of the reported surface warming since 1980 could be spurious.

I would love to write this work up and submit it for publication, but I am growing weary of the IPCC gatekeepers killing my papers; the more damaging any conclusions are to the IPCC narrative, the less likely they are to be published. That’s the world we live in.

Read the rest here.

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HURT: Brutal Week for Obama, the Worst of His Presidency

Charles Hurt

The past seven brutal days will go down as one of the worst weeks in history for a sitting president. It certainly has been, without any doubt, the worst week yet for President Obama.

Somehow, Mr. Obama managed to embarrass himself abroad, humiliate himself here at home, see his credentials for being elected so severely undermined that it raises startling questions about whether he should have been elected in the first place — let alone be re-elected later this year.

Consider:

• Last Friday, Mr. Obama wandered into the killing of Trayvon Martin. Aided by his ignorance of the situation, knee-jerk prejudices and tendency toward racial profiling, Mr. Obama played a heavy hand in elevating a tragic situation in which a teenager was killed into a full-blown hot race fight.

Americans, he admonished, need to do some “soul-searching.” And then, utterly inexplicably, he veered off into this bizarre tangent about how he and the poor dead kid look so much alike they could be father and son. It was election-year race-pandering gone horribly wrong.

• By the start of this week, Mr. Obama had fled town and was racing to the other side of the planet just as the Supreme Court was taking up the potentially-embarrassing matter of Obamacare. While in South Korea he was caught on a hidden mic negotiating with the president of our longest-standing rival on how to sell America and her allies down the river once he gets past the next election.

• Meanwhile, back at home, the Supreme Court took up the single most important achievement of Mr. Obama’s presidency and, boy, was it embarrassing. The great constitutional law professor, it turns out, may not quite be the wizard he told us he was.

By most accounts, Mr. Obama and his stuttering lawyers were all but laughed out of the courthouse. They were even stumbling over softball questions lobbed by Mr. Obama’s own hand-picked justices.

• Mr. Obama closed his week pulling off a nearly unimaginable feat: He managed to totally and completely unify the nastily-fighting Democrats and Republicans in Congress. Late Wednesday night, they unanimously voted — 414 to zip — to reject the budget Mr. Obama had presented, leaving him not even a thin lily’s blade to hide behind.

So, in one week, Mr. Obama got caught whispering promises to our enemy, incited a race war, raised serious questions about his understanding of the Constitution, and then got smacked down over his proposed budget that was so wildly reckless that even Democrats in Congress could not support it.

It was as if you lumped Hurricane Katrina and the Abu Ghraib abuses into one week for George W. Bush. And added on top of that the time he oddly groped German Chancellor Angela Merkel and got caught cursing on a hot mic.

Even then, it wouldn’t be as bad as Mr. Obama’s week. You would probably also have to toss in the time Mr. Bush’s father threw up into the lap of Japan’s prime minister. Only then might we be approaching how bad a week it was for Mr. Obama.

Not that you will see any trace of embarrassment in the face of Mr. Obama. He has mastered the high political art of shamelessness, wearing it smugly and cockily. Kind of like a hoodie.

Read the rest here.

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