El Chapo Finally Get His Due
The Mexican Drug Lord known as El Chapo finally got his due on Tuesday as a Brooklyn jury voted him guilty on all counts in a 10-charge indictment. The charges detailed the forty-year crime spree that made him a multi-billionaire with an estimated fortune of over $8 billion dollars. Starting as a street thug more than forty years ago, El Chapo learned the tricks of the trade from other dealers in what was to become known as the Sinaloa cartel.
As time passed Joaquin Guzman Loera became known and feared as El Chapo. The prosecution in the three-month case had a cascade of witnesses that describe how Mr. Loera used bribery, intimidation, kidnapping and murder to secure his place in the drug world. The defense had one witness that described El Chapo as a good and decent man. The defense said that it was impossible for Mr. Loera to get a fair trial in NYC and asked that the case be thrown out and that they would appeal the verdict.
It was interesting to watch this unfold as Mr. Trump continued to clamor for his wall. The syndicate that supported El Chapo told the same story time and again. They were able to bring in over 400 tons of cocaine by simply using different measures to cross the U.S. border. It was as if they were trying to campaign for the presidents wall all on their own. The inadequate funding for any type of a wall has fallen into the political morass of Washington. The numbers indicate that the crime wave in the southwest is clearly a result of no security along our southern borders. How this will work out will be seen, but right now the mess is not being addressed.
As for our amigo El Chapo, his last years will be spent with the Unabomber, the Boston massacre bomber and all of the other horrid people that plague our nation. This time it will be difficult to bribe the guards, the administration and politicians who will be responsible for him doing time. So, I think it is time for the drug enforcement agencies to take what they learned and go after the new lords of the Sinaloa cartel. Mr. Loera’s sons-Los Chapotos!
Ask Mr. Seifert
I am constantly asked questions about trading and how to exploit certain market factors to insure success. Each week I will answer one of those questions with a short paragraph which will cover the trading subject.
Question: What is the best way to initiate a credit spread?
Getting the spread on correctly is important. Novice traders blow themselves up trying to get the “edge” on the market makers. Forget about that strategy, it won’t work. You are not going to be able to out execute the market makers. There are a couple of ways that will work very well in getting the spread in place. First, you can “leg” the spread on by buying the long side of the trade first and then selling the short leg. I use this strategy when I have a preference in market direction. I get my limited risk leg on first and then try to sell the credit side with more premium. Second, you can set your browser on the site you are using to find out where the spread is trading in the live market. You should be able to get filled within a few cents either way once you know where the spread is trading. The third way is always wrong. It is to leg the spread on by selling the short leg first. This is selling a naked option and will eventually cause a big loser. You are not going to beat the wise guys at their game. Eventually the impossible will happen and as soon as you sell the naked option, Houston will get 50 inches of rain, and you will take a possible risk of $280 and turn it into $3000! You will then email me and tell me that I don’t know what I am doing and that the risk is much greater than I claim it is. Remember bulls and bears make money and pigs get slaughtered! Don’t be a pig. There is plenty of money to be made doing it the right way!
The Wise Guy Report: The View from The Electronic Floor
Each week I talk about how the Wise Guys (floor traders) find the soft spots in the market and take advantage of price dislocation in three major commodity markets: Gold (GC), Crude Oil (CL) and Long-Term Interest Rates (ZB). On the equity side, I cover MSS which is the Mister Seifert Sez Composite Index. This is a proprietary index that I created which measures the dollar flow of the four major indexes (S&P 500, Nasdaq 100, Russell 2000 and the Dow Jones Industrials) on an unweighted basis. This week Let’s look at how the equities markets have performed since the start of 2019.
Equities Trending (Bullish)
The markets are very calm at the moment, except for an occasional, unexpected earnings report that will send a stock either through the roof or will send it crashing down. Volatility is below its 20-year average and as long as we continue the climb off the December lows, there is no reason to suspect that it is going to suddenly take off again. At some point, an event will occur and the market will suddenly lose ground, but that is inevitable as the market never changes and the stuff happens when least expected. But for now, the longs are certainly the strong hands and as they maintain that position, the equity world should be safe and sound!
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The option Trades and Strategies offered by the Optionomics Group are unique in that they all have limited risk while creating great leverage. Our basic Bullish – Bearish Credit Spread Trade lets you control 100 shares of a $200 stock, a $20,000 position for less than $500 or 40:1 leverage. Your maximum risk is always limited and our strategies produce winning trades in three out of four possible outcomes.
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Each Monday morning by 11:00 EST, the recommendations for each strategy are posted on the Optionomics’ web site. In addition, the updated results from the previous week are posted on the Optionomics’ Scoreboard. I also have a webinar on Thursday afternoon where I discuss various option strategies, what is happening on the trading floors and answer any questions that you may have. Don’t worry if you miss the show. They are archived on the site. Sound Good? Good! You can subscribe to either the Traders or the Investor plans at an introductory special of only $39.95 each per month on a month to month basis with no contract or strings attached. That’s $10.00 off the regular subscription rate ($49.95). If you subscribe to both it is only $64.95 per month. I think you will agree that this is a super offer so give it a try. Go to www.optionomicsgroup.com and get started today doing what the pros do –
“Don’t Buy Them – Sell Them”.
Mr. Seifert