wikiwealth

Pension fund Blacklists Walmart

2012-01-06T05:44:00.000-08:00

The following Huffingtonpost article reports that there is a Dutch pension fund that is blacklisting Walmart from its investments. The power of the pension is now starting to be seen and felt.

Pepsi laying off employees to please investors

2012-01-05T11:46:00.000-08:00

There was a story from Reuters regarding Pepsi cutting 4000 jobs along with making cuts to the company's pension and 401K programs. The reason given is to be able to save their earnings numbers.

This is exactly the kind of short sightedness that get corporations into bigger trouble. Most companies that let Wall Street analysts dictate their business plans by making sure the earnings numbers come first need new management.

In this particular case, there is wonderment over the economic cost benefit analysis over layoffs versus management bonus' being decreased. It is surprising that Pepsi can feel that cutting pension and 401K matching programs to employees that need them works out better than cutting the enormous bonus packages that are relatively not needed to top executives. This action should show that Pepsi is not deserving of pension investment dollars.

Thanks Occupy Atlanta!!!!

2011-12-22T09:33:00.000-08:00

I would like to thank Occupy Atlanta for making JP Morgan Chase truly follow their slogan of "Going the extra mile for our veterans". The link to the story is below.

Occupiers force JP Morgan's hand

Public Pension debate question

2011-12-20T09:12:00.000-08:00

What results would occur if public employee pensions were directed to not invest the employee contributions for one month?

China's economic development/political stability

2011-11-21T07:16:00.000-08:00

Hey

I am watching comments and actions from China's government lately and am wondering if they are starting to deliberately slow down economic development to keep their political system in tact. I have read and am posting the following stories that piqued my interest.

When the rich leave an area, there is a need that isn't being met. I'm feeling that the need not being met has a lot to do with personal freedom and expression.

Guardian article

Reuters article

Moving Forward economically post 2 Corporate Profits

2011-10-07T06:47:00.000-07:00

Corporate profits are up. They are up a lot. This is both a problem and an opportunity. It is also a reflection on its unique position within the current economic climate. No other part of the economy as much a rosy picture as corporate executives and shareholders. The government is broke. Too high a percentage of consumers are either broke or not far from broke. This is not a fair balance.

The questions that will be covered in the following posts are 'How did this disparity happen?' and "What are the changes needing to be made so that the economy rises as whole while corporations are still making profits?'.

Bank fees = Anti Business

2011-09-30T08:27:00.000-07:00

The message sent from the banking industry to businesses and consumers has been received. Their need to feed their bonus machine is more important than allowing businesses and consumers to keep their money and be better capitalized to expand the economy. Consumers and businesses that use their debit cards are now going to pay for a bank executive's bonus instead of paying more for expenses or saving.

The idea that banks will not be able to function or make plenty of money without this fee is a lie. The idea that they are doing this because of restrictions on fees they charge businesses totally and completely validates the argument that they are looking out for their own profits before anyone else's. It is another scheme to protect their bonuses and will as has been the pattern of the last 7-8 years be detrimental to the economy as a whole.

I just hope bank executives remember that they took away money from the economy and individuals in order to receive their bonus. Congratulations.

Another revenue gimmick for Banking Industry

2011-09-29T11:12:00.000-07:00

In another move to take away money from business and consumers, the banking industry is about to put on a fee for simply using a debit card. The story is from AP via Yahoo!.

This is just another example of how banks are more in business for themselves than in it to grow business. Ridiculous!!!!!

Moving forward economically one step at a time post 1

2011-09-28T11:03:00.000-07:00

This is the beginning post to a series covering the topic of how to move this country's economy forward. Smaller sub-topics such as levels of corporate profits, war budgets, government budgets, consumer spending, and comparing the actions of this generation to the actions of previous generations actions during similar times will be covered.

Vanity Fair article on Merrill

2010-12-09T12:22:00.000-08:00

Here is a Vanity Fair article on Stanley O'Neal, Merrill Lynch's former CEO. It shows the level of intensity that greed can take hold on an ambitious person in a bad way.

Great article on Jamie Dimon

2010-12-01T08:36:00.000-08:00

The New York Times has published an article (below) on Jaime Dimon that is worth reading

Jamie Dimon Article

Enjoy!

Best Quarter Ever

2010-11-24T08:22:00.000-08:00

I am disheartened by the fact that as the working people (including you and I) of this country are going through tough economic times, corporations and their stockholders (to include me and you through retirement and other holdings) are enjoying record profits.

I guess the question is what do we do about it as citizens and shareholders at the same time?

The New York Times story below spells it out.

Largest Quarter Ever

Happy Thanksgiving!

Bank of America Mortgage Securitization Problem

2010-11-23T07:35:00.001-08:00

There is a big problem brewing at Bank of America. It turns out that some mortgages that were thought to be securitized actually were never given to the trustee. The story below from Abigail Field through AOL Daily Finance explains this issue in better detail.

B of A/Countrywide Mortgage Problem

Banks close to doing right

2010-11-16T15:52:00.001-08:00

After reading this story below, it makes me wonder again, how much better financially the country would be if they EVER did the right thing instead of the most profitable thing. Their blatant disregard at times while receiving that ridiculous sum of tax money is unbelievable. When will they realize they just have to own up, take the hurt that is coming to their company quickly, and move forward.

But then again, that would hurt their stock price, which reminds me of another company worried about its stock price..........It is no wonder Jeff Skilling is hopping mad about having to be in jail while these executives still are working and receiving million dollar bonuses.

CNBC foreclosure story

Retail Sales show positive

2010-11-15T10:22:00.000-08:00

Retail Sales show that the consumer was in a better mood last month in a New York Times story below. The encouraging part of this report is the growing strength big ticket item purchases.

October Retail Sales

Important jobless claim number

2010-11-10T06:21:00.001-08:00

The jobless claims came out today and the long term number was telling. It is lower than the point just before Lehman Brothers troubles. The Yahoo Finance story is below.

Jobless story

productivity slowing = hiring????

2010-11-09T15:09:00.001-08:00

Here is a story from CNBC below discussing how slowing productivity numbers might give a push towards hiring. This is about right as productivity is close to all time highs.

Productivity/Hiring

Solar Stocks

2010-11-02T11:15:00.000-07:00

Solar stocks are in a bullish mood right now.

Google wealth vs. Microsoft wealth

2010-11-01T07:14:00.000-07:00

Last week there was a conference at Northeastern Illinois University last week centered around the use of technology. The speakers of the conference were from Google's Chicago office, You Tube, and Motorola.

There was something I noticed very interesting before the You Tube presentation was about to begin. The You Tube executive was using an IPhone! Now, I don't know the specifics of what restrictions Google employees are put under as far as product usage, but using another company's products would not happen with Microsoft. This is a shift from the Microsoft model of employee product usage.

It is well known that Microsoft employees are required to use the Microsoft version of any product if available. The Gates family has been regularly asked by the press if any carry an Apple product and always answering that they use Microsoft products.

The YouTube employee using the IPhone (made from Apple) is in direct competition to its Google phone products. The guess is that the execs at Google, while still wanting their employees to use its products, allow them to freely choose to use whatever products they like without trouble.

The fuse has been lit

2010-10-29T06:50:00.000-07:00

This economy has the real opportunity to roar back in 2011. The GDP numbers were up an annualized 2%. This is great news considering the fact that corporations in the S&P are holding on to $1 trillion dollars and not hiring! It is not normal to find positive GDP without hiring or spending by corporate America.

There is a feeling that once the mid term elections are over, there will be more certainty as to how governmental economic policies will be shaped. That alone will allow corporations to act and start hiring again.

New Follower

2010-10-29T06:48:00.000-07:00

Wikiwealth would like to welcome Win$Win to the group. Hopefully you can find some useful information on this blog!

Intel building new plants

2010-10-19T11:16:00.000-07:00

Hey

The Associated Press wrote a story on how Intel will be spending $8 Billion to build new plants the next generation chips in the United States. The story is below.

Intel plants

Silent Obama Tax Cut shhhhhh

2010-10-19T11:05:00.000-07:00

Hey

For those of you who didn't know, 25% of the stimulus was given away in tax cuts. Here is a story (below) in the New York Times detailing how most Americans didn't even realize they received one even though they are railing against the evils of said stimulus.

Pass this on as I am sure there are people you know that fit this profile and might not know where 25% of the stimulus actually went to.

Obama Tax Cut

Profit at wikicallselling!

2010-10-16T10:57:00.000-07:00

Hey

The account over at Wikicallselling just reported a profit of over 21% in its most recent trade. The trade lasted a total of seven months. It used the strategy of buying shares and then selling calls against those shares. The stock used for the trade was Exact Sciences Incorporated.

Amazing article on bank failures

2010-10-13T11:17:00.000-07:00

Hey

Daniel Gross has written an exceptional article analyzing bank failures in the last few years.

Enjoy!

Good Article on job creation

2010-10-12T12:44:00.000-07:00

Here is a very good article on job creation from Dan Froomkin.

Job Creation

Enjoy!

Article on Profits or Hiring

2010-10-04T11:57:00.000-07:00

William Arden has written an article for The Huffington Post that outlines the fact that companies making up the S & P will make $189 billion in the past quarter.

This shows a sense of greed and fear. It also seems to show a laser focus on the short term and almost no focus on the long term.

Leave it to Kids

2010-09-28T06:57:00.001-07:00

Hey

AP reported that Toys R Us announced they will double their workforce for the holiday season. It is nice to know that a store for kids has become a leader in hiring and doing their part to get us out of the recession. Paging the rest of Corporate America, your table is now ready!

This blog does not have any relationship with Toys R Us other than now knowing where it will shop for the holiday season and beyond.

book purchase experience

2010-09-10T08:41:00.000-07:00

Hey

For a class I am currently taking on Futures and Options, I had to purchase "Money Management for Futures Traders" by Nauzer Balsara.

I purchased the book on line using Amazon.com Marketplace. The book shipped from Windsor Books in New York. The book was priced right, and shipped in a timely manner. If there is a need to buy some books online, consider using Windsor through Amazon.com.

Rockefeller example

2010-08-16T18:34:00.000-07:00

Back in the depression, there was one person (I'm sure not the only one) who saw the need for hiring, the need for building, and the need for leadership.

Strangely, the person I'm speaking about is John D. Rockefeller Jr..

The family owned a property in mid-town Manhattan when the depression hit. Rockefeller did something with this property that many big corporate executives of the time were unable to do. He decided that instead of hunkering down and keeping all of the family money, he would take a chance and develop the property. In the end, the project hired over 75,000 people. He was also able to convince other corporations like RCA to participate in the development the property. His vision to develop the property helped middle to lower economic class Americans. Together, the people working on the project not only built an American icon, it assisted a little bit in helping America get out of the depression.

The property is Rockefeller Center.

It would be nice if companies and wealthy entrepreneurs of this time would look to this example when wondering whether or not to hire. There is plenty of money out there. It is just being kept hostage because of fear and greed. The holders' of capital need to show some faith and get some projects going. The government can't be the only entity hiring.

arbitrary coherence

2010-08-15T09:50:00.000-07:00

I started reading Daniel Ariely's Predictably Irrational, and the topic of Arbitrary Coherence was brought up. In the book's words, "Although initial prices can be "arbitrary," once those prices are established in our minds, they will shape not only present prices but also future ones (thus making them "coherent"). " With this being said, I am looking at stock prices a little more carfully with the focus being on the relationship between a company's stock price and its true value. If there is a significant difference, is arbitrary coherence a reason? Can understanding the topic of Arbitrary Coherence make a person a better investor or trader? I think so.

Comments welcome.

Banks will be lending soon

2010-08-11T08:10:00.000-07:00

It looks like the retail banks will begin lending more in the near future. There are a few reasons for this idea. The banks' last quarter's earnings showed a lessening of loan losses. The banks' trading gains have also come back to earth now, eliminating that outlier. Companies also will be looking to expand their business as their balance sheets are cleaned up and their efficiencies are almost at an all time high.

The banks loan loss totals are getting smaller. This is obviously a positive for the banks in a couple of ways. Primarily, the banks can lessen the amount of money they hold back in order to cover loan losses. Last quarter, the banks used this money to pad earnings. But this is a bad long term strategy and can not be used for very long. The banks also have to replenish the amount of actual loans that were dramatically lessened in the last three to four years to their balance sheet. Consumer credit is increasing, allowing banks to feel more comfortable lending. Businesses have straightened out there balance sheets and set up their businesses to grow.

The ridiculous trading profits that were provided by the government funding through TARP is basically over. The market will not increase 50% like it did in the last two years. This will force the banks to find other forms of revenue in order to keep their shareholders happy. Lending is something that the banks are rumored to do from time to time.

Companies will have to expand their business in order to grow their profits. The ability to cut more is almost over. Production is quite high right now. Their balance sheets are set up to handle loans. They will be looking to the banks in order to provide loans to expand their business.

Chasing wealth

2010-07-30T06:31:00.000-07:00

There is a trade I want to make but I would need to break away from my plan in order to get in now. This is where discipline is important. It is important to work the plan.

I thought I would be in the trade two weeks ago but the stock has moved up to a point where even if it stays at this price, it will still be a week or two before I can get in.

For information on the trade, you can go to my call selling blog.

- If you enjoy this blog, please feel free to follow and let others know about it.

Use of tech to build wealth

2010-07-27T19:55:00.000-07:00

For the first time today I used Optionsxpress' droid app to place a trade. I was able to do it during lunch since I was away from a computer.

Technology can be a great way to become a better investor/trader. But these tools should be used after plenty of background work has been done.

So take some time and get to know the tech tools out there. They might be able to help you become a better investor/trader.

Dell did WHAT?!!!

2010-07-22T21:47:00.000-07:00

Take a look at what Dell did. That is scary and should be a red flag for any investor. There are probably safer investments out there. Management really screwed up.

New York Times article.

bank earnings and your safety

2010-07-18T18:09:00.001-07:00

Hey

Earnings for the previous quarter revealed something very interesting and transparent about the big banks and how they continue to make their money. It is primarily through trading and not through banking activities such as lending. Overall, loan losses were down this quarter at the major banks which should provide a boost to their stocks. But the banks' slowdown in trading and other activities had them lowering earnings levels for the quarter.

The New York Times came out with an article stating how banks such as Citigroup and Bank of America took big hits because their trading desks made less money than desired. JP Morgan Chase released good earnings because they released funds meant for possible loan losses. And anyone who thinks Goldman Sachs is a retail bank needs to explain it to me. They are an Investment Bank that had to switch to retail when the crash occured.

As mentioned before, all of these banks were able to pad earnings this quarter with money previously designated for loan losses that didn't occur. This is not a good development. Why didn't they loan the money out instead? This type of action either shows a lack of confidence in the US economy and you as a possible loanee or they are worried about their stock price and put that above helping to drive the needed growth in the U. S. economy. Son't be surprised if it is the latter.

Where are the loans? We gave these firms 700 billion dollars not just to trade and make money for their shareholders but to be a partner in bringing the economy back by making loans to deserving Americans and their businesses that create jobs. The interest received from those loans is a mere pittance for the government and the country as a whole compared to the long term earnings the government would receive in payroll and other taxes had the banks loaned that money out to deserving businesses instead of trading it.

These activities by the mega banks has brought on a movement of going to local banks because people (myself partially included) know they will see their money in work in their communities creating jobs and revenue. This movement needs to continue to grow until the big banks get the message that not loaning money out to deserving businesses is not acceptable. You will hear the banks say their clients are afraid to expand and at the same time hear those same clients complain about a restiction in credit from banks. I believe the businesses, not the banks.

This post is not a desire to eliminate the big banks. They have some great financial products and an important role in the U.S. economy. It is to get them to realize that there is a public needing its partnership to expand our economy.

Paying off the big bills

2010-07-04T06:41:00.000-07:00

Hey

Recently someone I know mentioned that they are finished paying off their car bill. This is a big step in wealth building. Now they will be able to put at least a percentage of that money towards savings or towards paying off another bill.

Congrats!

Commissions

2010-07-01T06:11:00.000-07:00

Recently, one of my brokers lowered its commissions rates by . This is important as I use this account for trading and will plan to make 25+ trades in the coming year.

Commissions do affect how you invest. You must include those costs when figuring out your returns.

Temptation

2010-06-15T11:34:00.000-07:00

Today there was a huge temptation to use some cash designated for another purpose to buy shares in the IPO of the Chicago Board Options Exchange. But cooler minds prevailed and the purchase did not happen.

Discipline is such an important part of investing and trading.

Happy Wealth Building!

China Global Finance again

2010-06-10T08:30:00.000-07:00

Hey

So here another couple stories that indicates a shift in importance towards China in the area of global finance. Both stories were found off of Yahoo! Finance.

China Growth

Geithner China Currency Importance

Happy wealth building!

RECOVERY

2010-06-04T04:06:00.000-07:00

There is a lot of talk about the European financial crisis and how it could become a contagion and end up causing trouble to the US financial structure. But with the US economy continuing to improve, I am one who believes that the financial crisis in Europe will not have a contagion effect on the US economy.

There are examples of times where financial crisis in other parts of the world had a minimal effect on the US financial system. For example, Russia's currency problems in 1998 devastated a hedge fund named Long Term Capital Management. But the rest of the system was able to circle the wagons and get back to growth. Also, the Asian financial crisis in 1997 was able to be handled by the financial community and the International Monetary Fund.

This is not to say that the US should not be prudent in its analysis of the current problems. They had many more bullets in the chamber than they do now to help. So the financial industry has to be very focused right now. It will take the best financial minds to be at their best to get us through these problems. But there are many indicators showing that the US financial health will still survive the problems in Europe.

Global Financial Leadership shifting

2010-05-27T06:57:00.000-07:00

For the past century, the normal headline would have read " Markets stabilize as US makes positive remarks about Europe." But the headline today read "Markets stabilize as China makes positive remarks about Europe." That headline is showing the world how leadership in global finance is shifting away from the US and towards China.

Are we losing our touch or is China simply gaining theirs? I'm thinking it is a combination. Our current financial leaders have shown a personal greed that has endangered our standing at the top. In the last 20 years, China's financial leaders have had a more leadership, less personal profit focus that has put them in a stronger financial leadership position than before. They haven't eclipsed us yet, but it could happen. We need to have a less personal profit, more leadership focus from our financial leaders.

The headline says it all. It would be nice if we could get back to that.

Dividend Stock During Downturn

2010-05-26T06:21:00.000-07:00

This downturn should be a reminder to us to look to either start or add to positions that carry high dividend yields. Over the long term, this strategy has done very well. The important step is the research you do in finding stable stocks. A few stocks that I have found to have a high dividend yield compared to their average are GE, Exxon Mobil, Johnson and Johnson, and Kraft. I am sure there are others. Please post what you find.

Refund to people works

2010-05-17T10:48:00.000-07:00

I am attaching a Bloomberg story about how Bank of America noticed that credit card defaults went DOWN because of tax refunds. This is a great example of how the government made a mistake giving that money to the banks directly and not the people. When money is given to the people, it tends to end up at the banks anyway in the form of mortgage payments or refund checks thereby not only saving the system, but saving credit ratings of consumers also.

A thank you goes out to Peter Eichenbaum from Bloomberg.

Anyway, here is the story.

Bank of America credit card story

Great Article on B of A

2010-05-13T11:01:00.000-07:00

There is a great article on Bank of America's new CEO written by Bloomberg. Congrats to authors Julianna Goldberg and Hans Nichols. Click on the link below:

Bloomberg Article.

Local Banks

2010-05-10T07:03:00.000-07:00

Recently, I went to the neighborhood local bank and started a savings account. I did this after researching what the effects of such a move would make on myself, the community, and the bank. I have come to the realization that there is a very important place in the banking industry for local banks. This action is not simply a direct move away from the mega bank. Mega banks also provide a service to the consumer that local banks cannot such as multiple branches and ATM's. It is simply an action taken to provide business to local bankers who keep their plan simple and their mission clear to the community. I encourage everyone to at the very least take a look at your local bank to open up an account.

The savings account was opened for a few reasons. The realization that I will actually see my money at work in the community is exciting to me. Also, local banks make the most of their revenue from banking and stay away from making their profits from other sources like trading. This creates an absolute focus on the business of banking which the megas don't have anymore. The opportunity for future business with the local bank will be made a little easier as their decision makers are in the building.

The idea that my money will be at work providing loans to local businesses is a good feeling. That is the essence of the local bank that the megas cannot match. Since they have a large stake in the community, they will be right there to help when needed. For instance, there is a local bakery right near me that received financing from the local bank. You can bet that I will be frequenting that bakery regularly knowing that people in the neighborhood have put in almost all the equity into the business.

The local banks are focused on banking. The megas have shown a lack of focus on banking and more of a focus on trading. This is clearly evident in their use of TARP funding. It was used for trading profits while lending did not get even the slightest bump. Local banks provide that focus on banking because that is their main source of revenue.

The third reason why I opened the account is that I will actually get to know the bank at a very close level. The decision makers for the bank are either in the same building or at the very least same neighborhood as the tellers and the rest of the bank. That provides an opportunity to create a lasting relationship with individuals of a local bank that I would not have access to at the megas.

So remember to check out your local banks. They provide a laser focus on banking, look to be the principle lender in the community because they are part of the community, and show a level of access that the megas cannot provide.

TCF changing over charge policy

2010-05-07T07:22:00.000-07:00

Hey

I received an email from TCF stating that they are changing their overdraft protection to mirror that of Bank of America's. Nice!

Yesterday's trading errors should make for some good water cooler talk. The issue I have is that the market still ended down three percent yesterday! It is down eight percent in two weeks! Either this is a great buying opportunity or we are in for some hurt.

An amendment capping the size of banks failed in the Senate last night. I actually think this is a good thing. We are the ones who need to spread the wealth around and keep our assets in local banks.

Dimon's whining

2010-04-06T16:04:00.000-07:00

What is Jamie Dimon thinking? As reported in a New York Times article, Mr. Dimon wrote a note to shareholders expressing his displeasure at the way politicians were demonizing big banks.

Now, the bank seems to be very well run. They also seemed to be in the least amount of trouble during the crisis. They didn't need the stimulus and paid it back as soon as possible. These are all positive aspects to JP Morgan Chase's business.

But to whine about politicians who represent the people is not a smart move. I don't remember seeing a thank you note to the government for guaranteeing his bank's purchase of Bear Stearns. This note in the letter to investors makes him look even more detached from what is going on in this country than previously thought. This note makes him look ungrateful to the public for bailing out the industry he is at the highest level of. It could even be considered similar to a let them eat cake comment.

Where Mr. Dimon should whine is Wall Street. To allow other banks to act so irresponsible without any public comments showed a lack of leadership from Mr. Dimon. Why isn't he whining about the banks that caused this mess and put the hurt on the American people. Why isn't he wondering out loud about how much money they caused his bank to lose?

If he really wants to step up to make his business better, he should be cheering for a higher standard of banking which includes better regulation. Looking to blame the politicians when the problem is your colleagues is weak at best. Mr. Dimon needs to be reminded who really caused the mess and who saved his livelyhood.

Bank of America does well again

2010-03-25T07:37:00.000-07:00

Who is this new CEO Brian Moynihan and what does he think he is doing to the bank America loves to hate? First Bank of America decides to make people more responsible with their finances by not allowing debit purchases for accounts without the cash to cover the purchases. Now they are putting together a program for home debt forgiveness. This is beginning to sound like a big turn around for Bank of America.

The program is designed to get homeowners out from being underwater because of the real estate crash. It shows a willingness on the bank's part to help citizens fight for their financial welfare. You can read more about it by clicking on the link.

I guess maybe someone in the Bank of America hierarchy finally realized programs like these end up creating a long term value.

compounding

2010-03-16T12:40:00.000-07:00

Hey

I am finding out while building a covered call account how continuing to add capital to the account has increased the call revenue in an almost exponential way.

Compounding truly is a wonder of the world.

test for link...please disregard this

2010-03-11T14:29:00.000-08:00

google

Bank of America does well

2010-03-11T09:18:00.000-08:00

Hey

For all my bashing of Bank of America, I do have to finally give them credit.

Yesterday they imposed a rule not allowing debit card purchases if the customer does not have the funds to cover the transaction. This is a bold move that could win back my business. It shows that they are willing to sacrifice short term profits by decreasing revenue from overdraft fees in order to run the business of banking correctly.

Thank you Bank of America.

100th post

2010-02-17T07:26:00.000-08:00

This is this blog's 100th post.

I thought it should be used to notify everyone that there is one less short sale on the books as my wife and I took it off of B of A and HSBC's hands.

If you want any info on short sales, send me an email and I will answer any questions you may have. It did take 7 months and had a bunch of issues with it but the price and neighborhood were right.

Cheers!

opportunity let go due to discipline

2010-01-21T12:44:00.000-08:00

So there is an excellent option opportunity tonight due to Google's earnings announcement after the bell.

But I will not be taking it due to the cash being committed to a different program (call selling) for future trades. Some may say that I should use the money now. But there being a slight possibility that the trade could be incorrect is enough motivation to keep from making that trade.

So what is the trade? It is a straddle trade with either IBM, Google, and Apple. It is my feeling that the growth in the winning option will outweigh the loss in the other option.

Tax cut, move your money

2010-01-21T08:22:00.001-08:00

Hey everyone

I think it might be time for the Obama Administration to give a payroll tax cut. I'm thinking that most give to much money to the government during the year anyway.

I also think that moving your money from the big banks to your local banks might make sense in that it might help the local banks recover quicker and repay their outstanding bailout loans to the government. The big banks have already paid back their loans and have reported large profits (pre bailout payback for B of A and Citigroup)during the last quarter. I think it is important to show local bankers that run their business correctly that they have the communities support.

Cumulative Advantage

2010-01-14T14:17:00.000-08:00

Hey

I have recently started reading the book "SuperFreakonomics." I came across the term "Cumulative Advantage."

To me, this term has the same level of importance as compound interest. As I write this I am realizing this is a very strong way to become very wealthy. For example, when my savings hits a mark, a percentage gets pulled out and used for other investments. I believe this cycle will eventually lead my wealth creation to high levels. I will have a strong savings base that will grow and assist newer businesses flourish which will in turn do the same.

I recommend this book (I've only read two chapters) and recommend looking into the ideal of using the cumulative advantage to become wealthy!

Good Luck

Bank of America

2010-01-08T13:15:00.000-08:00

Hey

I am going through a short sale that took Bank of America seven months to resolve. They in turn gave a two day notice to accept or the house goes to foreclosure. So nice of them. They have their jobs because of us.

Happy New Year Wealth

2010-01-05T09:27:00.000-08:00

Happy New Year!

Last year was a good one even through all the turmoil. There are a lot of opportunities for wealth this year whether they be taken in stocks, real estate, or any other investment idea.

I have helped start a call selling account which saw a few trades occur with varying results. You can see a blog on that account at www.wikicallselling.blogspot.com. This year will be focused on developing this account.

I am still seeing many real estate investment opportunities. If wealth develops in other investment areas, real estate will be on the table.

Keep saving and saving some more. The compound interest will be enjoyed.

Don't forget to give and donate time and fortune. Only then will you find true wealth.

back to normal

2009-12-14T08:24:00.001-08:00

Now that Citigroup has successfully persuaded the government to give its TARP funds back to the government, there must be a sense that all danger in the large banking industry has been eliminated to the largest extent possible. Yeah, right. Citigroup is still losing money! We are right back to 2008.

The main reason for this rush to payment is the executive pay issue. Citigroup wants to get away from the government pay umbrella.

They didn't expand lending. They didn't expand staff to handle the glut of foreclosures.

They did find money for bonuses though.

There will be a lot of pats on the back on this one. But it will mostly be from bankers and politicians that collectively have let us down.

Step on up Citi

2009-12-10T07:19:00.000-08:00

So now Citi is trying to pay back the government its remaining 20 billion dollars of US Government TARP aid. They plan to do this by issuing out more stock.

Now, since the government owns one third of the bank's common shares, wouldn't a new issue of shares hurt that investment? The government needs to play hardball on this and not let that sale happen.

This is simply a reactionary plan.Citi is simply jealous that Bank of America was allowed to pay back their debt. But I'm sure the government will roll over. Seems like they are good at that when it comes to the banks.

Bank of America

2009-12-03T06:22:00.000-08:00

I am troubled by the news today that Bank of America will be allowed to pay back the full amount of TARP bailout money it owes to the government. The reason why I am troubled by this is that the bank is doing this solely because it cannot seem to find a CEO that is willing to accept the government's pay restrictions. The fact that the government is allowing this shows that the banks are still in solid control and that the government still does not have principles for this policy.

Does this put the bank back in failure risk? I will have to check the balance sheet and the effect this move will have on it. I believe that this will have a terrible effect on the ability for consumers to get a loan. The bank will be tighter than ever with loans because they will have to be. In the meantime they will pay ridiculous amounts to their executives.

This allowance by the government clearly shows that the banks are still in control. They knew that Bank of America was having trouble finding a new CEO. Allowing this will shrink loans given out to consumers. Once again the government is putting us at risk. Now maybe Bank of America can pay this back and continue giving out loans. That most certainly can be the truth. But this situation is showing more clearly how the government is mismanaging the program.

overcharges

2009-11-12T14:00:00.000-08:00

There has been some movement on the overdraft legislation front. Bowing from pressure from consumer groups and Congress, the federal reserve announced yesterday that a new rule will go into effect July 1 2010 that limits banks from charging overdraft fees to those customers who approve them to do so. A story (below) in the Huffington Post follows up with more detail.

http://www.huffingtonpost.com/2009/11/12/overdraft-fees-require-cu_n_355442.html

Call your Congressman and tell them how you support this upcoming rule!It might make them further understand what is really going on!

New Yorker article

2009-09-24T06:40:00.000-07:00

Hey

I read an article from The New Yorker that covered the financial situation. I enjoyed the detail and specifics covered. I think the article gives the reader a better understanding into what was going on. The article was written by James Stewart. I follow his article in StreetMoney.

Now since a subscription is required, I cannot post the site here. But here is the abstract that they provide. I strongly suggest that you read this article. If you do not like the New Yorker past this article or cannot afford the subscription, there is always the library.

Enjoy.

Vanity Fair article on Paulson

2009-09-16T09:52:00.000-07:00

Hey

I recently read a very informative article about Henry Paulson in this month's Vanity Fair. The author, Todd Purnum, was able to get sort of a play by play during his term as Secretary of The Treasury. The article was also able to shine a light Paulson's take on the job, why he took the job, and what he was going through during the crisis. The article has enough detail to engage the reader but not too much to bore the non financial individual. Congratulations to Todd Purdum on writing this. I hope you enjoy!

investor - speculator

2009-08-10T11:51:00.001-07:00

I think that there isn't much of a difference. In our long run, it is all speculation. So don't let other media outlets fool you when they discuss what "investors" are doing.

Goldman's Monopoly

2009-07-15T12:26:00.001-07:00

Hey

With CIT failing, does Goldman have any competitors of scale?

Bank of America...literally

2009-07-08T09:43:00.000-07:00

Hey

It was recently reported in a story from Bloomberg Magazine that Blackrock has been given a lot of the management contracts for the bank bailout.

The conspiricy theorist in me wonders whether this was because of the fact that Bank of America took on Merrill Lynch. I would have thought that JP Morgan or Goldman Sachs would have been a better fit.

Anyway, I think this is a positive area of revenue and profits overall for Bank of America as they figure out the Merrill Lynch mess.

Dislosure - I do not own any of the stocks mentioned in this story at this time.

Call selling blog

2009-06-12T11:06:00.000-07:00

Hey

I have moved the call selling blog to Call Selling Blog. This is where info on trades from the call selling account will be located.

Peace

6 weeks to go, in black so far

2009-06-05T14:58:00.000-07:00

Hey everyone

The open trade is currently positioned to end with a profit. The stock price rallied past the call price earlier in the week and finished the week above the call price. The call price has increased its time value (in dollar terms) by sixty percent since the trade was made meaning there is an increased level of interest in the company's stock. The call's expiration is due in six weeks or 30 trading days.

The company was positively covered by CNBC and the call options being traded were mentioned by a writer from Optionsmonster (link with story will be shown after trade is over.) I found the article through Yahoo Finance.

In the meantime, another deposit has been made to the account. Currently the trading account will be able to handle double the activity in four months. This will be one month shorter than it took for the previous set up to take. It is important to keep these deposits coming as it will assist in the accounts growth through new deposits, interest, and trade revenue.

As always, I do not fully divulge information on open trades until they are done. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask me questions and I will answer them the best I can without endangering the trade.

First trade entry

2009-06-01T17:25:00.000-07:00

Alright! First trade entered!

I made the trade on May 27. I have purchased 100 shares of stock and sold an out of the money (but closest to the money) July call (fifty cents away.) The premium received from the call (after transaction costs) equaled 5% of the stock. The chart of the stock is in a recovery mode since the spring thrashing.

I made this purchase for several reasons. The chart of the stock is showing major support at this level. The company came out with a positive surprise last quarter and guidance for next quarter was positive. The stock has room to move up without being called away right away. The difference between the call price and the stock price also allows a decent profit after transaction costs if reached. The call premium received allows continued growth in capital for the account.

As always, I do not fully divulge information on trades until they are done. At that point, I will give out the rest of the details (stock name, price purchased, call purchased, chart info) that sort of thing. Please feel free to ask me questions and I will answer them the best I can without endangering the trade.

In business

2009-05-27T06:57:00.001-07:00

Hey everyone

The covered call account has reached its capital requirements and is now in business. Now to find the first trade! Thanks to Optionsxpress for partnering!

certainty is king

2009-05-19T07:13:00.001-07:00

As I watch the earnings, economic numbers, and other factors come in today, the idea of certainty in regards to analysis came across my mind.

The idea that an analyst understands his field is only shown through his/her ability to correctly and consistently forecast his/her numbers. I will be looking at analysts in different fields and hopefully find some analysts that are consistently close to actual numbers.

Bank of Black Rock America?

2009-05-19T06:12:00.000-07:00

Hey

I just read a story in the New York Times talking about Black Rock's role with managing government programs and private funds during the bailout. As you will read, Bank of America OWNS 47% of Black Rock! I'm thinking the likely hood that Bank of America will survive is pretty good because of this.

today's thoughts

2009-05-14T07:30:00.000-07:00

How is it a surprise to the "experts" that consumer spending is low when employment has continued to go down? Until employment changes, this economy will at best be in neutral.

There needs to continue the effort to create new jobs through the green economy. That will get the non degree holding work force of america back to work. Without this major investment, I am not positive on this economy at all.

Where else can investment dollars go to grow the economy? Let me know.

apr 24 news

2009-04-24T06:31:00.001-07:00

Hey everyone

Another deposit was made to the covered call account. The project is still looking to start with July options with a slight possibility of June options being available to trade. It is looking like June 5th will be the absolute earliest time that the program will start.

It is nice to know that there is a light at the end of this tunnel in the next two to three months. When the account was started three months ago, I didn't realize how long six months felt after knowing what I want to do. But I realized that the risk level of the strategy dictated that enough capital has to be there to ensure profits from the trading. It also provided an opportunity to test out the strategy. By waiting until the capital levels are correct, the level of risk in the account has been eliminated.

Covered Call Account

2009-04-10T06:32:00.000-07:00

Currently I am funding covered call account. The strategy provides a consistent income on a monthly basis. This strategy will provide a step level type income as the more options we will be able to sell, the more income we will be able to produce. The expectation is that the revenue curve will be shaped in an exponential curve. I will be able to implement the strategy in about 10 weeks. I am looking to the July options as a start to the account.

Keep you posted!

bailout for purchasing???

2009-01-12T06:42:00.000-08:00

Hey everyone

I just came across a story that is talking about Citigroup dumping its brokerage business to Morgan Stanley for two to three billion. I am loving the way the government has absolutely no control over how the TARP funds are being used. Great job! With the fact that consumers take up 70% of the economy, isn't it great we will barely see any of that money?

This week should be very interesting. Quarterly reports come out, last week of Bush presidency (ie free reign for the banks), and developments on Mr. Madoff.

bank interest rates

2008-09-18T17:39:00.000-07:00

Hey everyone

I found a great web site for comparing savings and cd rates. It is called bankaholic.com. Check it out.

As for today's trading........wow! Can't say I've ever seen that.

AIG continues socialism for rich

2008-09-17T06:40:00.000-07:00

Hey Everyone

Yesterday, the federal government had an opportunity to lower rates and help the American worker and consumer. Instead, they chose to protect an insurance company. It is my opinion that the AIG bailout is a development that adds onto the idea that the federal government continues to bail out those on Wall Street while not showing people on main street any true compassion.

The progression of this cycle is frightening. First, we had the lowering of rates while banks kept theirs high. Then we had a flat out grant to the banking industry in the form of overnight liquidity issuance by the Federal Reserve. That was followed by a "stimulus package" to consumers that was primarily used to pay for things like credit card payments, gas, and even groceries. Then a major shoe dropped and Bear Stearns went under and JP Morgan bought it with Fed guarantees. Now, we have an international insurer that has been bailed out by our federal government. My question is where does it stop?

Beware people. Previously, as after 9/11, the federal reserve took rates as low as possible. It has not happened this time which makes me think there is still another level to this crisis. I'm thinking that Washington Mutual and Wachovia are on their last leg. There has also been news about Morgan Stanley not making it through this. It is amazing to me to see Goldman Sachs trading as low as one hundred dollars today.

If you have cash, there might be some buying opportunities out there. But only if you completely understand what you are buying. Otherwise, I would stand pat right now. The dow already has lost close to 800 points this week. Let the dust settle.

GLD, GE, and PBW

2008-07-14T10:07:00.000-07:00

- It looks like my call spread trade with gld will be in a holding pattern until time value expires. I could have done a better job of analyzing the pricing on the options throughout the spread cycle.

- GE seems to be a holder but I cannot do much with it right now. I am holding as they are looking to sell some businesses.

- I am thinking that PBW is at a bottom for the rest of the year. The down trend which was fierce the last month has stopped completely. That is not to say that the ETF is moving up. Just that the down trend has stopped.

This type of financial environment is volatile to me but not scary. It is the reason I bought GLD in the first place. I believe every market has its opportunities. You just have to find them. If you have a strategy, then you will find a market or stock for that strategy. Be patient and do the work necessary to find those positions.

learning to make money with spreads

2008-07-11T08:30:00.000-07:00

Hey

Recently I started to look into investing in spreads to minimize the risk, yet still make a decent profit. My first trade was with PBW. The stock had gotten taken down in January and formed a buy doji the length of a runway. For protection, I went out six months to buy the June 22/24 call spread. The stock had gotten as low as 18 but because I had time on my side, I still held. Well, in May the stock moved up to my sell point and I was out of the position with a 47% gain.

Wow! 47% on the first trade. This looks like something I can do with my extreme discretionary funds.

The next trade I made was with GE. I bought the 32/34 Dec call spread thinking that the formula worked once, why not again. But right now the stock is around 27 with new earnings out that met expectations. I still feel pretty safe with this trade because I believe the downturn was the fault of the earnings miss the previous quarter. They also are looking to sell some divisions that should boost the earnings and the stock price.

I have also recently purchased the Dec GLD 92/94 call spread. I purchased this two weeks ago when the ETF was at 91 and today it is at 95. With both calls in the money, I figured that I would carry the two dollars and sell. Wrong.

It seems time has a strange formula that I had not picked up on with PBW. With PBW, there was barely any time value left on the trade. So the spreads were basic. But this is not the case with GLD as there is still five months to go before expiration. The time value for the 94's is currently more than the time value for the 92's. So much so that I am going to have to wait for my profit and now have the risk of the ETF going down during that time. This is an eye opener and I will have to add that to my list of issues with trading spreads.

Gold for $$$$

2008-07-02T11:24:00.000-07:00

Hey everyone

I have recently entered into a call spread with GLD, the gold ETF. I purchased the Dec 92/94 call spread. My analysis on the ETF is fairly simple and are shared below. Remember to always do your own due diligence when investing/trading. I purchased it for $1.25 (includes commissions) and have a sell order in for $1.80 (before commissions).

- Dollar very low

- Oil very high

- ETF broke out of range to the upside

- It is volatile

- European Central Bank will probably raise interest rates to cmbat inflation unlike the US Fed Reserve

- War troubles

- G8 meeting creating worldwide focus on economic issues

Time to buy GE

2008-05-23T10:29:00.000-07:00

Hey everyone

This week, GE reached a new low. The stock has now gone lower than when the earnings hit came a month ago. GE just reported that they are keeping '09 figures ($2.46) where they are. That is an increase of ten percent per share. With the current price, this puts GE's P/E at a very likeable 14.

I believe GE is in a great position with what I call "The Green Revolution" (shown by the turbine purchase from T Boone Pickens Fund). This success will only grow as the presidential candidates continue to press their own green plans that no doubt will include purchasing systems and materials from GE.

I think the financial house is in as good a shape as it can be and that there will not be another Bear Sterns surprise. Many people forget that that episode came during the quiet period before earnings so the company couldn't say anything. But as the Bear episode reminded all investors, if you don't have access to all info, anything can happen.

They are also looking to divest themselves of their appliance division that should garner 5-10 billion.

So over the week I purchased a 32/34 December call spread. I think the stock is fundamentally positioned to add value. has the profit to get us moving positive over the next few months. Technically resistence levels don't show up until the 34 range.

sold spread

2008-05-19T11:48:00.000-07:00

Hey everyone

Today I sold the PBW June 22/24 call spread for a profit of 40 dollars or 47%. I'm going to go over some points on the trade just to get the information out there to use in the future.

Positive

- The money spent on purchasing the spread was not needed in any other capacity. But purchasing a spread allowed me to get into a trade.

- I had based my sell on the basis of the regular research done both technically and fundamentally on PBW and its components. This was key as the time to expiration came close because PBW had not moved up in the profit range since Feb.

- There was a clear buy signal during the market sell off where

- The fact that it was an ETF gave it a level of stability needed. The solar and alt energy stocks are extremely volatile and this type of trade (spread) is not compatible to a highly volatile stock (in my mind).

- I have a general interest and general knowledge in the alt energy market leaving any necessary research needing to be done easy to do.

Negative

- I should better clarify my selling strategy before entering the trade.

- I should have a larger profit N when determining the loss N

Overall

- I did well on this trade. I found a spot to enter with the market meltdown in Jan. I also found an unusual high up day to get out. I found a spread that was probable. I paid a price I could afford. I made money with not panicking or being that surprised at the result. I researched the companies in the ETF and understood what was coming. I could tell from the chart that there would be a blowout of the triangle formed. I have put a percentage from the profit into my base account to make my family wealthier. I will continue to try to find more trades to make:

1) That there is an edge (like the oversold point.)
2) Better identify my sell point
3) Identify my N and the ratio of loss to gain

- The price has since come down and might provide another opportunity to purchase a six month term spread. I like the fact that this ETF is better balanced with wind, solar, geothermal, and biodiesal companies. But I will step back today and wait until I find I have an edge before I trade again. I hope I do.

Time to straddle PBW again

2008-04-28T10:23:00.001-07:00

Hey everyone

The chart of PBW is again telling us to straddle. I would pick the Sep 21's and 22's. With earnings coming up in the next couple of weeks for the companies covered, there should be some decent volatility. The image is blurred but you can see the price is right on the 15ma and the bands are closing. The chart will allow a straddle because of the volatility and the consistent following on the edges of the bands to provide more than enough profit to cover the loss on the other side. Also, 700, shares have been traded by 1 PM eastern which is fairly heavy at this point in the day. Thanks to Optionsxpress for the chart.

tax rebate worries

2008-04-28T10:13:00.000-07:00

Hey everyone

I heard about the feds hurrying up with the tax rebate checks and I am concerned about why they are doing this.

My feeling on the subject is that they are quickening the process because as the president said this weekend "People need money to pay for their gas and food." Now this is a dramatic change from when the plan was first announced and the president talked about using it on consumer goods such as electronics or clothing.

The other reason I am worried is that I bet there is someone at the fed who is increasingly worried about the economy in general and made this hurry up happen.

My two questions to the fed are how bad is it and how bad is it going to get?

PBW Earth Week

2008-04-25T14:13:00.000-07:00

Hey Everyone

I was very encouraged by all the news coming out of the companies that PBW encapsulates. Here are some of the stories. The chart also looks bullish as the bands are getting closer together and the 15 has crossed the 50. Earnings will be coming out in early to mid May so be ready for some volatility. You might think a straddle is in order here just to be safe.

Solar in General - CNBC clip and article on Solar

PBW - Najarian recommends

FSLR - New IR chief

TSL - New 6 year silicone contract

PBW news and holdings 4/7

2008-04-07T06:59:00.000-07:00

Hey everyone

Here are the top ten and news stories for PBW and the top ten

Fund Holdings subject to change
	Suntech Power Holdings Co. Ltd. (ADS)	3.74%
	Yingli Green Energy Holding Co. Ltd. (ADS)	3.69%
	JA Solar Holdings Co. Ltd. (ADS)	3.65%
	First Solar Inc.	3.56%
	Trina Solar Ltd. (ADS)	3.55%


	Evergreen Solar Inc.		3.55%
	SunPower Corp. (Cl A)		3.54%
	Ormat Technologies Inc.		3.17%
	Echelon Corp.		3.12%
	Energy Conversion Devices Inc.		2.80%

Upgrades/Downgrades

None

News

PBW - Seeking Alpha article on top revenue by ETFs

YGE - Solar starts week strong

TSL - Motley Fool article on solar

ESLR - Rueters article on plant expansion

ELON - Yahoo article on Philips agreement

PBW news

2008-03-27T05:25:00.000-07:00

Hey everyone

Here is the updated top ten list with news:

Fund Holdings subject to change
	Cree Inc.	5.26%
	Applied Materials Inc.	4.99%
	Itron Inc.	4.38%
	MEMC Electronic Materials Inc.	4.23%
	First Solar Inc.	3.79%


	Ormat Technologies Inc.		3.52%
	IDACORP Inc.		3.47%
	JA Solar Holdings Co. Ltd. (ADS)		3.42%
	OM Group Inc.		3.38%
	American Superconductor Corp.		3.34%

News

AMAT - Clean Energy hold potential
Closed Mixed on Wed.

Ormat - drop in net for quarter

AMSC - CEO sells shares

PBW news for 3/24

2008-03-24T05:44:00.000-07:00

Hey everyone

These are the top ten holdings with their percentages as of today.

Fund Holdings subject to change
	Applied Materials Inc.	5.43%
	Cree Inc.	5.25%
	Itron Inc.	4.55%
	MEMC Electronic Materials Inc.	4.48%
	Ormat Technologies Inc.	3.79%


	IDACORP Inc.		3.66%
	First Solar Inc.		3.50%
	American Superconductor Corp.		3.41%
	Cosan Ltd. (Cl A)		3.40%
	Portland General Electric Co.		3.39%

3/17-19 PBW news

2008-03-19T08:26:00.000-07:00

Hey everyone

Belated Happy St. Patty's day!

Below is news, and any upgrades/downgrades of the top ten holdings of the ETF. I am still bullish on the ETF and still own the 22, 24 June credit spread. I would like to thank Yahoo! Finance, Marketwatch, and Powershares for the information.

Top Ten Fund Holdings subject to change

Applied Materials Inc. 5.47%, Cree Inc. 4.95%, MEMC Electronic Materials Inc. 4.64%,
Itron Inc. 4.39%, Ormat Technologies Inc. 3.75%, First Solar Inc. 3.65%, IDACORP Inc. 3.57%
American Superconductor Corp. 3.56%, OM Group Inc. 3.52%, Cosan Ltd. (Cl A) 3.44%

Upgrades/Downgrades

AMAT - In a story reported by Marketwatch, Applied Materials was upgraded by Caris and Company with a price target of 27 from 21. The full story is also in news.

News Stories

AMAT - Upgraded by Caris

MEMC - CEO made 1.8 million dollars last year

ITRI - NY Investor Day

FSLR - Cramer thinks this day is different

AMSC - New Orders from overseas

3/13/ PBW

2008-03-13T06:28:00.000-07:00

Universal Display is releasing earnings after the close today. So we should see some movement on this tomorrow.

Here are the news for the 13th on PBW:

IBD article on Itron

Motley article on Ormat and First Solar

CNBC article on First Solar

Have a great day

PBW 3/12

2008-03-12T08:35:00.000-07:00

Hey

PBW has hit another bottom and has moved up over a dollar from that low. I am thinking there might (and I stress might) be a W forming here. The 50 day has crossed over the 200 day average and is located just at the middle of the prospective W (at about 23). I believe there is a short term bullish call up to 22.50. There will be some resistance at that point so watch out for that. If it breaks through this point, we will have a W. If not, I would wait and figure out if there is a range to be traded. Another note is that the bands have opened up and this stock has a history of riding the edges both negative and positive. Keep that in mind. Here is a graph as of 10:45 CST today. Stories of the day are below the graph.

Thanks to Yahoo Finance, Optionsxpress, and Powershares.

Seeking Alpha article on PBW

Seeking Alpha article on Suntech

TSC article on CREE

WSJ article on ITRI

Yahoo! article on Solar

PBW for 3/11

2008-03-11T05:31:00.000-07:00

Hey everyone

The dollar will continue to drop with Fed action. Cheney is in the Middle East to beg the princes for more oil. The clear fact is right now we are not in the bargaining position as China and India are a bigger percentage of oil consuming nations.

PBW has hit the skids big time here. I am screaming buy! This sell off is in a market where energy prices are driving people to alternative clean energy technologies. The sell off is still in the majority the financials and currencies. So this is a bargain. Per disclosure, I still have my June 22-24 call spread open. I still believe the fundamentals are still there for the company.

Here are some news stories about PBW and its companies:

Seeking Alpha article,

CNBC AMAT article

WSJ article on FSLR

TSC article on Solar

TSC article on Cree

CNBC article on Cosan

Put Congress in the blame

2008-03-10T10:08:00.000-07:00

Hey

I am getting pretty angry over Congress' attempt to show it cares by putting Countrywide CEO's feet to the fire. The idea that smart men and women, elected to represent their community, did not know what was going on until now is an absolute joke.

They let these predatory lenders into their communities. They covered the banks' recent financial losses by accepting the Fed's rate cuts instead of demanding a higher rebate package. They simply had their head in the sand and their hands out for donations. I wonder what Countrywide and the other lenders political contributions were like.

Congress members failed their communities as much as the lenders failed. And now our financial system is in trouble. To be clear, I feel that this is not a democrat or republican failure. This is an institutional failure.

3/6 PBW and more

2008-03-04T07:07:00.000-08:00

Hey everyone

PBW is testing 20 for the third time in a month. A couple of days ago I suggested a 21 straddle and that trade looks like a winner on the put side of things. I would actually look to sell the put at a profit at this point and ride the call. For disclosure purposes, I own a 22-24 June call spread that I still feel positive about.

Buffett is the richest person in the world. That is not surprising. The diversified but focused investment approach is in my opinion the best.

evil empire introduces 401k debit card

2008-03-04T06:45:00.000-08:00

Hey everyone

Recently there has been an idea and execution of getting a debit card for your 401K plan. Stay away from that! It is simply another way for the banks to get at your hard earned dollars through fees, fines, and penalties. There is a plethora of articles on the subject with this one from genxfinance as an example.

Speaking of the banks, it has been noted here before how they have been saved by the federal government. I read in the Wall Street Journal today how Citi might be letting go of over 25,000 employees! Can you imagine what the damage might be had the feds not covered their butts?

PBW is trading at the low end of the range.

2/27 PBW

2008-02-27T13:48:00.000-08:00

Hey everyone

Greentech Media put out an article about the solar industry on Seeking Alpha.

The chart is consolidating and is creating a nice wedge. There might be an opportunity to put a straddle on at 22 or 21. I would make it at least six months out to give sufficient time protection.

That said, I am still hanging with the call spread I own. I personally think that the sector has a lot of growth ahead of it and it will benefit from both public and private funding.

PBW news 2/25

2008-02-25T16:24:00.001-08:00

Not much movement or news today. There was a story about First Solar in the WSJ's Investing section but it was fluff being the hot stock in 2007. But press is press.

The bands are within 2 points of eachother which is the closest they have been in 3-6 months. Expect some movement this week as the fed chairman speaks to congress and a couple of the companies are releasing earnings.

Later

PBW info

2008-02-21T10:34:00.000-08:00

Hey everyone

The following stories about companies within PBW seemed relevant to post. I also posted the stories on Yahoo! Finance if that is easier

- thestreet.com article on First Solar (company web site)
- seekingalpha article on PBW (company website)
- reuters article on Itron (company website)

I think the ETF has hit a gathering period. I still feel my 22-24 June spread is a good trade.

A penny for your thoughts.......dollars for our investments!