iBankCoin
I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
2,953 Blog Posts

General Motors Down Big Ahead of Wednesday Open After ‘Monopolistic Behavior’ Comments from China

When reports surfaced Tuesday night that China would impose a penalty on an unnamed American automaker, it was evident that Government Motors would be their target.

Buick is a successful line of internal combustion engine cars in China, especially among their elite.

The threat of a penalty has shares of $GM off by over -3% as we approach Wednesday’s open.

Automotive News, citing reports from the China Daily newspaper and a Bloomberg report, wrote that the Chinese government is targeting GM China.

Automotive News added that the Chinese government believes General Motors gave an order to various distributors in the country to fix prices starting in 2014.

The report comes at a strained time between the Chinese government and the U.S. following Donald Trump’s victory in the U.S. election. Trump has taken a harsh stance against China and even called to label the country a currency manipulator.

Nevertheless, China’s director of the National Development and Reform Commission’s price supervision bureau Zhang Handong was quoted as saying no one should “read anything improper” into the timing or target of the penalty.

Any headwind for General Motors is a positive for Tesla.  The likihood that trade wars with China will affect the bailed out automakers is no different.

Bullish for Tesla, bearish for Lyft and GM.

 

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Tech Rallying Hard Ahead of Trump Tech Summit

The highly anticipated rate hike from the Federal Reserve may take a back seat Wednesday to Trump Tech Summit which is set to take place at Trump Tower the same day.

Executives from some of Silicon Valley’s biggest companies have been summoned by our President-elect to meet and discuss the future of America, and how they intend to make it greater.

Representatives from the following companies will be in attendance at TrumpCon:

Alphabet
Amazon.com
Apple
Facebook
Intel
Microsoft
Oracle
Tesla Motors

You read correctly, Tesla is at the table with The Don.  And as we know, if you’re not at the table, you’re the meal.

Notice how Twitter is not at the table?  They’re the entree.

Silicon Valley prides itself in being a utopian safe space, where passive aggression and Game of Thrones style perversions are the means of dominance.  Thus, it comes as no surprise that the cucks at Gizmodo are throwing serious shade on the event:

hudson

Writer’s Note: Nice angle, Hudson

In reality, the meeting is likely to be quite civil.  Some handshakes for the camera in the golden lobby, a few suggestions from our Premier, and off they go, back to California where the mountains are high and the beaches long.

The meeting could garner more attention than the highly anticipated Fed Rate decision, set for 2pm tomorrow.  This is sort of like when the King of Pop Mike Jackson died and everyone overlooked Farrah Fawcett.

The tech-heavy NASDAQ is going absolutely apeshit to the upside ahead of the event, dealing swift castration to short sellers in Tesla and other companies.

Most tech leaders are adults and respect the USA system of picking president and have expressed solidarity with Premier Trump.

Reuters reached out to some of our best tech leaders for response:

Oracle’s CEO Safra Catz told Reuters that he plans on telling Trump “we are with him and are here to help in any way we can.”

Eric Schmidt, chairman of Alphabet said during an interview, “We should congratulate the next president of the United States […] Most people did not expect this outcome and it’s a pretty amazing story.”

Jeff Bezos, CEO of Amazon tweeted, “[C]ongratulations to @realDonaldTrump. I for one give him my most open mind and wish him great success in his service to the country.”

Tim Cook, CEO of Apple told employees in a memo, “Regardless of which candidate each of us supported as individuals, the only way to move forward is to move forward together.”

Others were still feeling a personally attacked by the devastating defeat of their low-energy candidate and offered a negative sentiment.  Namely Cheif Executive Censoror Mark Zuckerberg:

Mark Zuckerberg, CEO of Facebook posted on his Facebook wall, “We are all blessed to have the ability to make the world better, and we have the responsibility to do it. Let’s go work even harder.”

Despicable insolence aside, leaders from these top Silicon Valley companies will be meeting with our President-elect Wednesday and the prevailing sentiment on Wall Street is that this is a good thing.

The NASDAQ is at all time highs and climbing.

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Tech-Heavy NASDAQ Drifts Higher Overnight; Fed Decision Looms on Horizon

NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume.  Price worked higher overnight, up beyond Monday’s high and the market is sustaining the gains heading into cash open.

The economic calendar is light today with only a 4-week T-bill auction at 11:30am and a 30-year Bond auction at 1pm.  Investors, however, patiently await the Fed Rate Decision due out tomorrow afternoon.

Yesterday we printed a normal variation down.  After coming into the week gap down an early attempt higher was rejected by sellers.  The defended Friday’s low sending the market into a calm decent.  After going range extension down, the market checked back to its daily midpoint then formed another rotation lower. This one revealed a responsive bid which pressed prices back higher above the mid by the close.

Heading into today my primary expectation is for an early short squeeze, up to the weekly gap at 4892.25.  Look for sellers up at 4895 and two way trade to ensue.

Hypo 2 sellers work into the overnight inventory and close the gap down to 4865.75.  Sellers take out overnight low 4859.50 and find buyers just below at 4858.50 before two way trade ensues.

Hypo 3 strong buyers work up to the 4900 century mark, consolidate, then continue up to 4908.50.

Hypo 4 strong sellers work down to 4845 before balance ensues.

Levels:

12132016_nq_mp

Volume profiles, gaps, and measured moves:

12132016_nq_vpgapsmeasuredmoves

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Julian Assange Associate Reminds Everyone Their DNC Source Was Not Russian

Former British ambassador to Uzbekistan and close WikiLeaks associate Craig Murray said he has met the person who gave over 20,000 DNC emails to WikiLeaks and they are not Russian.

The Guardian reached out to Murray while reporting about how the CIA concluded Russia helped Trump win, and he called literal ‘bullshit’ on the intelligence agency’s claim:

“I know who leaked them,” Murray told The Guardian. “I’ve met the person who leaked them, and they are certainly not Russian and it’s an insider. It’s a leak, not a hack; the two are different things.”

He then took to his own blog to defend his claims, and while he sounds convincing on paper, there is little chance he will be taken seriously.

Do Julian Assange and I have a reputation for truthfulness? Well in 10 years not one of the tens of thousands of documents WikiLeaks has released has had its authenticity successfully challenged. As for me, I have a reputation for inconvenient truth telling.

Murry believes this entire claim is being used by global neocons to ensure a conflict against Russia:

The worst thing about all this is that it is aimed at promoting further conflict with Russia. This puts everyone in danger for the sake of more profits for the arms and security industries – including of course bigger budgets for the CIA.

During his interview with The Guardian, Murry also notes that the US government has historically done an excellent job of extraditing and arresting hackers.  Thus, if the CIA knows who is behind these actions, they would have arrested the hacker already.

Something isn’t adding up.

 

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NASDAQ Volatility As Investors Brace for A Fed Rate Hike

NASDAQ futures are coming into the week gap down after an overnight session featuring abnormal range and volume.  Price rallied to new all-time highs before reversing down through the entire Friday range and gap before finding responsive buyers down at last Thursday’s close.

The economic calendar is loaded with US Treasury activity including a 3- and 6-month T-bill auction at 11:30am, and also a 3-and 10-year Note auction at 1pm.  There’s also a 2pm Monthly Budget Statement.

However investors have their eyes on Wednesday afternoon when the Federal Open Market Committee is set to lift interest rates by 25 basis points.  As soon as this afternoon, we are likely to enter a holding pattern ahead of the decision.

Last week saw US equity market in rally mode.  We gapped up into the week and held the move through Wednesday when we began to trend higher.  The buyers pressed for the rest of the week.  Here’s the performance of each major index during the first full week of December:

12112016_indexperf

On Friday the NASDAQ opened gap up and printed a normal variation up.

Heading into today my primary expectation is for buyers to work into the overnight inventory to close the gap up to 4892.25.  Look for sellers up at 4895 who work price down through overnight low 4862.  Buyers down at 4856 and two way trade ensues.

Hypo 2 sellers work down through overnight low 4862 to target 4856 before two way trade ensues.

Hypo 3 strong buyers press overnight gap fill up to 4892 then take otu overnight high 4916.75 before two way trade ensues.

Hypo 4 strong sellers press down to 4847 before two way trade ensues.

Levels:

12122016_nq_vpgapsmeasuredmoves

Volume profiles, gaps, and measured moves:

12122016_nq_mp

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Research from iBankCoin Labs Paints a Rosy Picture Heading into The December Interest Rate Hike

The results are in.  After tabulating the data from last week’s rally and inputting forecasting metrics for next week, the IndexModel is issuing a winter rally warning.

12112016_biasspread

The model registered some of the highest scores ever, bested only by the extreme bullishness seen in early April.

Fed fund futures over at the CME show a 94.9% probability of a rate hike Wednesday from the FOMC.  Thus far, despite the high probability of an event historically seen as bearish for equities, markets are careening higher.

This may be due to investor perception on the economy being robust enough to sustain a rate hike, and that being bullish.  Or, this could be the bow on a legacy stock market for President Obama, who gave us the finest stock market of our lifetimes.

At iBC labs we don’t particularly care to dwell on the ‘whys’ of the world, instead focusing on expectations and how we intend to extract currency from the market regardless of its behavior.

Heading into next week, the plan will be to find ways to go long before the Fed meeting, then to use the post-meeting reaction to dictate our bias into the second half of the week.  Simple.

The world is aglow, tinted rose by the stock market gods.  The best of times, enjoy!

Exodus members, the 109th Exodus Strategy Session has been published.  Go check it out!

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NASDAQ Making A Run on The Highs; Seeks To Join in All The Index Games

Note: Yesterday, December 8th active traders rolled forward to trading the March 2017 futures contract.  For the sake of the IndexModel, today’s price levels will be reported using the December /NQ contract.

NASDAQ futures are coming into Friday gap up after an overnight session featuring normal range and volume.  Price worked up to new weekly highs overnight, and as we approach U.S. open prices are holding above Thursday’s high.

On the economic docket today we have the preliminary reading of U. of Michigan confidence.  With futures rolling over, this preliminary reading can be used to jostle the market.  Be aware of this 10am announcement.

Yesterday we printed a normal variation down.  The gap up was quickly sold to fill down to Wednesday’s close before a bidder stepped in.  The rest of the session was balanced but sellers did manage to extend the range lower, albeit briefly, toward the end of the day.  Prices quickly recovered during the Ramp Capital hour.

Heading into today my primary expectation is for buyers to squeeze higher, up through 4881 triggering a move up to 4895.  We are likely to settle into two way trade from here.

Hypo 2 full-on move for the highs, sustain trade above 4895 and a move above 4907 to make new highs.  Look for some traffic around 4900.

Hypo 3 sellers push down to 4864.25 before two way trade ensues.

Hypo 4 a liquidation triggers, down through overnight low 4852.50.  Look for buyers down at 4847.25.

Levels:

12092016_nq_mp

Volume profiles, gaps, and measured moves:

12092016_nq_vpgapsmeasuredmoves

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Foxconn Owner Terry Gou Goes Full Donald Trump on, Well, Donald Trump

Does anyone know if this is real?  Bloomberg published an open letter Wednesday from the man who owns Foxconn, the work camp where iPhone’s are assembled.

Read this.  Terry Gou sounds alpha AF:

Dear Mr. Trump,

You don’t know me but I’m Terry Gou, the man who makes your iPhone.

Let me start by congratulating you on the election. Your victory made me consider running for office myself. Next time you talk with the president of Taiwan, it might be me on the other end of the line.

We have a lot in common, you and I. We’re both billionaires (although I am richer), we both like to build things, we’re both married to gorgeous younger women, and we both hate Wall Street.

I know that you’ve been telling your constituents that you’re going to create a lot of jobs, so I want to give you some advice. First, you don’t actually have to create any jobs, you just have to make people think you’re going to create them. I am sure you’re familiar with the concept.

Actually, I can help you with that. If you look at Brazil, Indonesia, India and half a dozen Chinese provinces, you’ll see that my work speaks for itself.

Take Indonesia, one of my proudest achievements. Oh no, I haven’t built a single iPhone there and probably never will. During closed-door discussions, they allowed themselves to believe I might invest $10 billion in a mobile-phone factory. It’s not my fault some over-eager politician, keen to burnish his reputation as a can-do leader, blabbed to the media.

All I need to do is lay out my demands and watch while the bureaucrats and politicians argue about whether they can afford to have me or risk falling short on a campaign pledge.

So that’s where you and I need to talk. I hear you’ve been telling people you’re going to get Apple to build stuff in America. Well, you see, Tim Cook doesn’t build things, I do. In fact, I got $75 billion in revenue from them last year.

foxconn

I am a doer, Mr. Trump. I get things done. When Apple told me to start making iPhones in Brazil to get around import tariffs, I made it happen. It didn’t create much employment, mind you, because I just exported pre-fabricated iPhones for the locals to slot together — kind of like Lego — but it got the job done. And by job, I mean kept Apple’s and Brazil’s leaders happy. And who do you think paid for it? Not me.

If you want iPhones to be made in America, I can make that happen, too. Heck, I can set up a production line in Trump Towers if you like, but the costs will be yuuuge. I have to cover my expenses, which include factories, labor and transport. You see, I don’t manufacture in China just because it’s cheaper, but because thousands of suppliers are there, within spitting distance of my factories and the one million people I employ during peak season.

I can deploy more robots in the U.S., sure, but it can take months to train them whereas humans can be taught in a few hours. Besides, more robots means fewer jobs.

Bumping up your import tariffs won’t change the equation much, but give me tax breaks, subsidies to hire workers, cheap electricity and free land, and I’m sure we can come to some arrangement. Let me know what numbers you want to Tweet, and I’ve got your back.

But just remember: Like that wall you’re planning to build, somebody’s going to have to pay. And it won’t be me, let me tell you.

Best,
Terry Gou
Chairman, Foxconn Technology Group.

Mr. Gou doesn’t shy away from the fact that he occasionally employs a million seasonal laborers and is a master at gaming globalism for Apple.  The world craves straight talkers.  Perhaps this is an effective tactic in the People’s Republic of China also.  He hints at running for office in a place where ‘fake news’ does not exist, only heavily censored news.

This has all the makings of a high powered billionaire showdown.  The world is getting lit fam.

But I am confused, did the Foxconn owner actually write this letter or was it dreamed up by some shill at Bloomberg?

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Gene Munster: To Hell With Wall Street; Let’s Launch A VC Firm

This is a no-brainer folks.  There are no more good deals to be had in the early investment space anymore.  They’re all gobbled up by VC funds, milked for everything they’ve got, then dumped onto the investing public at absurd valuations, enriching bastard venture capitalists in the process.

The opportunity to get into an exciting company at the ground floor and benefit from their parabolic growth is now reserved for the world’s elites.

You, Joe blow investor, are an ATM machine for VC funds.

Seeing the writing on the walls, Gene Munster is leaving his post at Piper Jaffray to launch his own VC fund.

Good for him.

Benzinga with the details:

Long considered the top analyst covering Apple Inc and other important tech names, Piper Jaffray senior analyst Gene Munster will be leaving the firm in order to start a new venture capital firm.

Munster will be joined by long-time associates Doug Clinton and Andrew Murphy to start Loup Ventures, a firm that will be investing in virtual reality, augmented reality, artificial intelligence and robotics.

Munster joined Piper Jaffray in 1995 and has covered the digital media space.

In addition to numerous blockbuster bullish calls on Apple, Munster was also considered a top source on big tech and internet names like Facebook, Google, Amazon, and Yahoo!

We can expect Gene Munster to serve us steaming piles of Twitters, Snapchats, and DJI’s to us someday soon.

Puke

PJC stock is up 1.5% today because, well we’re rallying and stocks are just binary bits married to the US exchange.

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Market Chatter: Ackman Takes Stake in Textron $TXT

Shares of mega-conglomerate Textron spiked to a new 52-week highs this morning before reversing after unconfirmed chatter Bill Ackman has a stake in the company.

$TXT is one of those corporations you know is inherently evil because they do everything from manufacturing ‘finger of death’ drones to plastics to fiber optics and beyond.

With the majority of their endeavors being of the war variety, shares have performed well over the last few months.

It doesn’t seem like a Bill Ackman type of play, and many traders are dismissing the rumor, but perhaps he took a stake in the aerospace/war conglomerate to better align his funds with the incoming administration.

Conclusion: Unproven, but possible.

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