Doubling And Tripling Your Money...

I am re-printing a story I wrote a few months ago:

"Last night I had dinner with some brokers in a party I`ve attended with my wife. We were talking markets even though I do not really like to talk about the market when I am out of the office. But these guys are funny and always have some nice war stories to tell about their costumers.

This one I think its inspirational for all of us. One of the customers opened an account in July with 60,000 USD. He only traded Dax Warrants during this period and he was able to run his account to an astonishing 1,670,000 USD a few weeks ago. Then a small disaster struck and the account come down to 300,000 USD but right away he rebuilt it to 800,000 USD. Of course this was all before this Dubai`s mini-crisis and I can`t wait to know what has happened to his trading account in the last 2 trading days.

Anyway, this client is a medical doctor over 60 years old that placed most of his trades through the phone because he thinks trading platforms are not user friendly...What about that?

Another 2 interesting numbers. Only 8% of all these brokerage house customers are able to win over an extended period of time and the median lasting time of a trading account before it goes to ZERO is 6 months. Where does that money go to? To the trading pros, of course."

General Electric Is Down For 6 Straight Sessions.

General Electric (GE) will probably open lower today again, after dropping for 6 consecutive trading sessions. It may be an interesting time to play for a rebound in this stocks.

I will keep track of this trade on the comments section.

Have a great trading day.

VXX, The Volatility ETF Makes A New Low.

The volatility ETF, iPath S&P 500 VIX Short-Term Futures ETN (NYSE:VXX) is making a new all time low. While I do not recommend using the ETF for medium and long term plays because of the contango, a short term play on the long side seems interesting at this point.

3 Stocks That Are Up 10 Days In A Row.

If you are looking for overbought stocks to sell short, or to play via options, here are 3 stocks that have had a 10 day consecutive winning streak: Schlumberger Limited. (SLB), Virgin Media Inc. (VMED) and TransDigm Group Incorporated (TDG).

The market has been so enthusiastic that even a dinosaur like Microsoft (MSFT) has managed to rally for 6 consecutive session.

These are interesting very short term play on the short side of the market.

I will leave you with the amazing Pagani Zonda test drive:

Have a great day.

Whitney: I Expect Multiple Municipal Defaults To Trigger Indiscriminate Selling.

“The level of complacency around this issue is alarming. Most assume, as last week’s Buttonwood panel did, that the federal government will simply come to the rescue of the states without appreciating the immensity of the cumulative state-budget gaps. I expect multiple municipal defaults to trigger indiscriminate selling, which will prompt a federal response. Solutions attempted in piecemeal fashion, as we’ve seen thus far, would amount to constantly putting out recurring fires.

Rather than waiting for more federal intervention, states need to make their own hard decisions and not kick the can down the road. How will taxpayers from fiscally conservative states like Texas or Nebraska feel about bailing out threadbare Illinois or California? Let’s hope we never have to find out.”

Meredith Whitney

Are You Bearish? Here Are A Few Stocks With A Good Probability Of Correcting.

Schlumberger Limited. (NYSE:SLB) is on a 10 day winning streak, Las Vegas Sands Corp. (NYSE:LVS) is currently on a 8 day winning streak and very, very overbought and finally American Express Company (NYSE:AXP) on a 7 day winning streak.

I am bearish and short, waiting for a classic buy the rumor, sell the news reaction this week.

Have a great trading session.

If you want to relax 5 minutes while listening to a good sound, try this:

The national are one of my favorite bands.

US Economy To Slow Further

ECRI`s Lakshman Achuthan expects no double dip in the economy, but he still believes that the US economy is going to slow further:

"Lakshman Achuthan and the team at ECRI not only predicted the recession, but also predicted the recovery. In their most controversial call earlier this year they called for a slowdown, but not a double dip. That call is looking pretty good based on recent data. Achuthan sees no double dip going forward, but believes the economy is going to slow further."

in The Prag Cap