Tag Archives: Zerohedge

Dealing Marijuana – OTC

I sometimes wonder out loud (here, for example) why I keep getting hit up with penny stock requests. My little Fiverr experiment (here) brought in a handful of spin doctors fishing for technical analysis and at the time those requests looked arbitrary. One of my favorites was for an underwater tree harvesting company.  Really. But several were affiliated with a recently legalized and very popular plant. (No disclosures forthcoming.)

I hadn’t considered the trend until I stumbled on a Zerohedge post (here). The good bits come from Nanex.

An explosion of OTC trading:

OTC Shares Traded

 

Trade executions per day taking into account the lower price value of penny stocks:

OTC ActivityThat alone is interesting, I didn’t realize there was so much interest in OTC stocks. But the next table is what caught my attention and fits with the types of request I’ve been receiving:

Guess where all that trading activity is going.

Top OTC ActivityGood Trading, Dude.

 

bitcoin

Bitcoin Goes OWS

bitcoinRegular readers know I appreciate Grant Williams and his TTMYGH newsletter, his most recent, War Games prompts me to think out loud about Bitcoin.

Mr. Williams makes no reference to Bitcoin, but I’m sure it’s sitting in the back of his mind, much like OWS was sitting in the back of Lloyd Blankfein’s mind last year. Grant presses the dangers of global currency wars and presents an enlightening Asian example of currency influence on GDP, competitivity, even the rise and fall of corporate ’empires’. He links central bank profligacy, inflation, gold repatriation, and paints an ominous picture of our financial future. As usual it’s worth a read!

Bitcoin hit the mainstream media again this week when Bloomberg published, “Bitcoin’s Gains May Fuel Central Bank Concerns“. Zerohedge dutifully reacted with “Is The ECB Responsible For The Second Coming Of BitCoin?

 

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Classic Zerohedge

I’m sure Tyler Durden is not David Zervos!

This is a classic ZH Post. I’m tempted to keep a short list of my favorites… Relating to this little ramp up in the markets here’s their nearly immediate response:

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Contradiction

Aren’t fixing inflation targets and locking down interest rates contradictory statements?

I am very sceptical of this little bounce off the words ‘historic’ which are crossing the wires. “In historic shift, fed sets inflation target.” Wow. So if I understand (which I obviously don’t) on one hand, we’re printing money, for more jobs and to save the banks, fine. I can buy that. But we’re also printing money and have been for a few years. This is inflationary. Period. It raises our default risk but with luck will lower our $15,000,000,000,000.00 + national debt, great. Inflation will also makes pickles, beef, homes, etc. more expensive, and I like pickles. So how is setting an inflation target at 2.0% even remotely believable? This is pure marketing. I can print because I have a target. There’s a 100% chance they won’t hit their target.

For the moment the markets are buying it. It’s Dollar negative which is boosting the Euro, Gold, and Silver.

Update: Very well said ZH!

Not sure what to make of a market that traded relatively poorly on strong apple earnings but managed to rip higher on a relatively neutral fed statement.

Good point…

This is a quote from ZH, and it does get you thinking. (Highlights mine.)

Have you noticed that all the “hot” initial public offerings (IPOs) being hyped by Wall Street are all marketing companies? The big IPO that has everyone on the Street salivating is of course Facebook in 2012–the ultimate “social media” marketing machine. What’s striking about these heavily hyped Social Media companies is that they make nothing, and their service is either free (Facebook, Twitter, etc.) or a “free” marketing mechanism (Groupon). When was the last time a company went public in the U.S. that actually manufactured a good? When was the last time a “hot” company went public selling a service that had nothing to do with marketing and that actually performed a valuable function?